First HoldCo Plc has announced a remarkable 1,503% surge in recoveries, climbing to N94.31 billion for the nine months ending September 30, 2026, compared to just N5.88 billion during the same period in 2025. This substantial increase was largely driven by recoveries made in the first half of the year, which accounted for N91.89 billion, while the third quarter saw a sharp decline in recoveries to N2.42 billion, contributing only 2.6% of the total.
This financial performance is significant as it underscores First HoldCo's ongoing efforts to improve its credit governance and recovery strategies after facing over N3 trillion in impaired loans over the past decade. The Group's profit before tax also rose by 60.84% to N911.24 billion, indicating that while recoveries played a crucial role in earnings growth, other operational efficiencies and income sources were also key contributors. The decline in impairment charges by 28.3% to N207.10 billion further supports the notion that First HoldCo is making strides in stabilizing its financial health.
Looking ahead, investors will be keen to see how First HoldCo manages to sustain its profit growth without relying heavily on recoveries, especially given the stark contrast between the first and third quarters. The Group's ability to maintain robust core banking operations and continue reducing impairment charges will be critical in determining its long-term stability and performance in both the African and global markets.