Nigeria’s oldest bank crosses N6trn market capitalisation for the first time

First HoldCo Plc has become the first bank in Nigeria’s history to surpass a market capitalisation of N6 trillion, driven by record earnings, renewed confidence in the group’s transformation strategy, and sustained demand for banking stocks.

The financial holding company crossed the milestone during trading on the Nigerian Exchange (NGX) on Monday after its share price climbed to N136.50, lifting its market capitalisation to approximately N6.21 trillion based on its 45.48 billion outstanding shares.

The latest achievement comes barely two weeks after the company crossed the N5 trillion valuation mark for the first time on July 22, reflecting sustained investor appetite following the release of its half-year financial results.

Investors have continued to pile into the stock, sending its year-to-date gain to 184.97 percent. Since the end of June alone, the share price has surged 43.53 percent, making it one of the best-performing large-cap stocks on the local bourse.

The rally has also widened the gap between First HoldCo and its banking peers, reinforcing investors’ confidence in the group’s earnings outlook and long-term strategic direction.

Earnings fuel investor optimism

The market re-rating comes on the back of a strong first-half financial performance that significantly exceeded market expectations.

For the six months ended June 30, 2026, First HoldCo reported profit after tax of N526.13 billion, representing an 81.6 percent increase from N289.77 billion recorded in the corresponding period of 2025.

Profit before tax surged by 83.5 percent year-on-year to N653.54 billion, while gross earnings rose 16.7 percent to N1.93 trillion. The performance was driven by stronger trading income, robust growth in non-interest revenue, and significantly lower impairment charges on loans.

The earnings performance has further strengthened investors’ expectations of improved shareholder returns, particularly after the group adopted a dividend policy committing to distribute at least 60 percent of annual profit after tax to shareholders.

The new payout policy marks a significant shift from previous years when dividend payout ratios remained below five percent, reflecting management’s confidence in the group’s stronger capital position and cleaner balance sheet.

Otedola’s leadership reshapes investor perception

Much of the renewed investor confidence has been linked to the strategic transformation undertaken since billionaire businessman Femi Otedola became chairman of First HoldCo in January 2024.

Since assuming the leadership position and emerging as the group’s largest individual shareholder with a 25.87 percent stake, Otedola has championed aggressive capital strengthening, governance reforms, and balance sheet restructuring.

When he took over as chairman, the company’s shares traded between N19 and N22. At Monday’s closing valuation of about N136.40, the stock has appreciated by nearly 618 percent in roughly two years, creating enormous wealth for shareholders.

The rally has also rewarded investors who participated in the group’s recapitalisation exercise.

During the banking sector recapitalisation programme, First HoldCo raised approximately N149.56 billion through a rights issue priced at N25 per share. The offer, which closed with a 125.46 percent subscription rate, was heavily supported by existing shareholders and successfully strengthened the group’s capital base.

At current market prices, investors who subscribed to the rights issue have seen the value of their investment appreciate by about 445.6 percent, highlighting one of the strongest returns generated by any recent equity offering on the Nigerian market.