First HoldCo Plc recorded a 1,502.8 per cent jump in recoveries to ₦94.31 billion in the nine months ended September 30, 2026, up from ₦5.88 billion in the corresponding period of 2025, although the third-quarter figure dropped sharply to ₦2.42 billion.
A review of the Group’s unaudited financial statements shows that the bulk of the recoveries came in the first half of the year, with ₦91.89 billion booked between January and June.
The third-quarter amount represented only 2.6 per cent of the nine-month total.
The recoveries were recognised under other operating income, which climbed to ₦142.06 billion from ₦23.83 billion a year earlier.
They made up roughly 66.4 per cent of other operating income, compared with 24.7 per cent in 9M 2025, underlining their growing share of the Group’s non-interest earnings.
Over the same period, the Group’s profit before tax rose by 60.84 per cent to ₦911.24 billion from ₦566.54 billion, while profit after tax increased by 65.11 per cent to ₦744.45 billion from ₦450.87 billion.
Recoveries gave earnings a notable lift. However, calculations by Nairametrics Research show that with recoveries stripped out of both periods, pre-tax profit would still have grown by about 45.7 per cent, from ₦560.65 billion to ₦816.93 billion.
This suggests that, although recoveries supported earnings growth, other income sources and changes in expenses also played a major part in the improved profitability.
The financial statements classify the amounts as recoveries but do not name the borrowers, loan portfolios or specific exposures behind them.
The rise in recoveries comes as First HoldCo works to deal with its legacy credit exposures and tighten its lending practices.
In an exclusive interview with Nairametrics published on August 3, 2026, the Group Chairman, Femi Otedola, disclosed that the institution had impaired more than ₦3 trillion in loans over the preceding decade, pointing to the scale of its past credit-quality challenges.
Otedola attributed the deterioration in the loan book to weaknesses in credit governance and persistent defaults by borrowers.
He explained that First HoldCo had strengthened credit governance, tightened risk-management procedures and intensified efforts to recover delinquent obligations.
The chairman also identified higher recoveries from defaulting borrowers as evidence of progress in the Group’s restructuring programme.
His comments provide context for the institution’s wider recovery strategy following the heavy impairment charges recorded in earlier periods.
Impairment charges fell by 28.3 per cent to ₦207.10 billion in 9M 2026 from ₦288.92 billion in the corresponding period of 2025, even as customer lending grew.
The ₦81.82 billion reduction in impairment charges eased pressure on earnings, especially as the Group’s net interest income declined to ₦1.26 trillion from ₦1.50 trillion a year earlier.
Loans and advances to customers rose by 4.8 per cent to ₦9.39 trillion as of September 30, 2026, from ₦8.97 trillion at the end of December 2025. Despite the larger loan book, the Group posted lower impairment charges.
Third-quarter profit after tax also grew by 35.5 per cent to ₦218.32 billion from ₦161.10 billion a year earlier, even though recoveries were far lower than the first-half amount.
This shows that First HoldCo continued to grow its quarterly earnings year-on-year despite a smaller contribution from recoveries in the latest quarter.
For investors, the wide gap between first-half and third-quarter recoveries underscores the need for First HoldCo to sustain earnings growth through its core banking operations and lower impairment charges, rather than lean heavily on recovery-related income that may not recur consistently.
