First HoldCo’s Strategic Transformation : A Move to Reclaim Its Industry Leadership

First HoldCo is rewriting the rules, thinking differently about competitiveness, strategies, and organization. Under Femi Otedola’s leadership, the company is embracing a transformative mindset that re imagines its competitive edge, rethinks its growth strategies, and reinvents its organizational DNA. By challenging conventional wisdom and embracing change, First HoldCo is crafting a distinctive approach that combines innovative thinking, agile execution, and a customer-centric focus, positioning itself to disrupt the Nigerian financial landscape and deliver unparalleled value to stakeholders.

The above views are surely backed up by facts and the figures, and the results are , no doubt, palpable from the investors’ point of view . First HoldCo’s competitive market performance is a testament to its strong presence in the Nigerian banking sector. With a market capitalization of ₦2.16 trillion, the company has solidified its position as a major player in the industry. Its share price of ₦49.50 as at January 13, 2026 ,reflects a robust funding base, strong customer confidence, and a diversified portfolio. Although the company’s year-to-date gain of 1.25% may seem modest, its impressive four-week gain of 53% indicates a significant surge in investor interest and market momentum. This remarkable growth is a clear indication of First HoldCo’s potential for continued success and expansion in the Nigerian banking landscape

First HoldCo’s market dominance is clear. First HoldCo’s market capitalization dwarfs that of Access Holdings, with a share price of ₦49.50, a double that of Access Holdings’ ;ACCESSCORP closed its last trading day (Tuesday, January 13, 2026) at 22.95 NGN per share.However , UBA’s share price at N 45.95 on January 13, 2026 is closer to First HoldCo’s, but still lags behind. it faces stiff competition from GTCOclosed around NGN 99.50 (Jan 13, 2026), and Zenith Bank. trading day (Tuesday, January 13, 2026) at 68.00 NGN per share on the Nigerian Stock Exchange (NGX) . Looking at its peers; Guaranty Trust Holding (GTCO) leads the pack with a market capitalization of ₦3.62 trillion, followed by Zenith Bank at ₦2.79 trillion.

The current superior positions of both GTCO and Zenith Bank notwithstanding, First HoldCo’s sights are set on overtaking these giants going by its current potentials . This optimism is driven by its recent private placement of 3,276,923,077 ordinary shares, which raised ₦106.5 billion. The company’s share price has gained 70.77% in 2025, rising from ₦28.05 at the start of the year to ₦47.90 by December 31. With its strong performance and growth potential, First HoldCo is definitely a player to watch in the Nigerian banking sector.

Not only that . The company is still banking on its valuation score that stands at 3/6, indicating it’s undervalued compared to its fair value. According to Simply Wall St, First HoldCo’s fair price is estimated at ₦90.28, suggesting the stock is 46.3% undervalued ¹.The company’s Price-To-Earnings ratio is 3.4x, lower than the peer average of 3.1x and the African Banks industry average of 7.2x, indicating it’s trading at a discount. First HoldCo’s financial health is strong, with a diversified portfolio and growing customer base, positioning it for growth. However, analysts have a mixed outlook, with a 12-month price target of ₦37.21, representing a -23.28% decrease from the current price.

.Driven By Strong and Competitive Fundamentals:The Figures

The above impressive strategic position could be traced to its competitive fundamentals .First HoldCo’s impressive financials underscore its position as a major player in the industry, with total assets of approximately ₦26.5 trillion and customer deposits of ₦17.2 trillion as of December 2024. The company’s strong equity base of ₦2.8 trillion provides a solid foundation for growth, while its customer loans and advances of ₦8.8 trillion demonstrate its commitment to driving economic activity.

First Holdco Plc’s 9M 2025 financial report highlights a resilient performance, driven by a surge in interest income despite a moderation in total assets to ₦26.40 trillion in 9M 2025 from ₦26.52 trillion in FY 2024. Moreover , its shareholders’ funds grew 16.5% to ₦3.26 trillion, boosted by a successful rights issue that raised N146.7 billion in April 2025 to strengthen the bank’s capital position. Customer deposits rose 4.2% to ₦17.9 trillion in 9M 2025 from ₦17.17 trillion in FY 2024, while gross loans and advances expanded to ₦9.6 trillion from ₦8.77 trillion, indicating a steady growth in the bank’s core business.Gross earnings grew 17.1% to ₦2.64 trillion in 9M 2025 from ₦2.25 trillion in 9M 2024, driven by a 40.4% surge in interest income to ₦2.29 trillion, fueled by asset re-pricing. The bank’s key metrics as of 9M 2025 paint a strong picture: a Return on Equity (ROE) of 14.06% indicates a decent return for shareholders whille its Cost-to-Income Ratio at 52.44% remains competitive . Even its Net Interest Margin of 11.3% reflects a strong interest income generation.

The Challenges

However , the battle for industry leadership has been very challenging . Translating this dream to reality depends on its capability to dismantle certain road blocks on its way up the ladder .First HoldCo’s quest for industry leadership is facing significant headwinds.

First HoldCo’s earnings potential is a mixed bag. On one hand, the company boasts a strong return on equity (ROE) of 15.2%, a respectable figure in the industry. However, it lags behind peers like GTCO (18.1%) and Zenith Bank (17.3%), indicating room for improvement in generating returns for shareholders. This suggests that First HoldCo needs to optimize its operations, manage costs, and explore new revenue streams to boost its earnings potential.

First HoldCo’s digital transformation is also facing headwinds. With a digital banking revenue contribution of 20%, the company trails GTCO (25%) and Zenith Bank (22%). To stay competitive, First HoldCo must accelerate its digital push, investing in cutting-edge technology and changing mindsets to embrace a digital-first culture. This will enable the company to improve customer experience, increase efficiency, and tap into the fintech-dominated future of finance. The stakes are high, but the rewards are worth it .

Maintaining prudent risk management practices is crucial, given the current economic environment. First HoldCo’s non-performing loan (NPL) ratio of 4.2% is slightly higher than the industry average of 3.8%, while its cost-to-income ratio (CIR) of 62.1% indicates scope for operational efficiency improvements. Bank management is all about navigating the delicate balance between risk and reward. Managing the mismatches between assets and liabilities, as well as the spread between borrowing and lending rates, is the core of a bank’s existence. It’s about anticipating and mitigating risks, whether they’re credit risks, market risks, or operational risks. Effective bank management means being proactive, not reactive, and creating a culture where risk is everyone’s business. By getting risk management right, banks like First Holdco can unlock value, drive growth, and build resilience in an increasingly complex financial landscape

Financial performance metrics also paint a mixed picture. While First HoldCo’s total assets grew to ₦26.40 trillion, with a strong deposit base of ₦17.9 trillion, its profitability declined due to higher operating expenses and impairment charges. Profit before tax fell by 7.26% YoY to ₦0.566 trillion, while profit after tax declined by 12.96% YoY to ₦0.458 .

Analysts Expectations

To overcome these challenges, First HoldCo must focus on driving revenue growth, optimizing costs, and maintaining a robust risk management framework. To gain or accomplish its much-needed industry leadership, what First Holdco needs is a world-class Funds Transfer Pricing (FTP) system. This is because it will enable the bank to accurately measure profitability, manage risk, and optimize resource allocation. A robust FTP framework is essential because it is capable of informing strategic decisions, driving growth, and ensuring stability and sustainability.

With a world-class FTP system, First Holdco can price products accurately, manage interest rate risk, liquidity risk, and credit risk, and drive growth and profitability. It will position the bank for competitiveness, risk management, and informed decision-making, ultimately propelling it towards industry leadership. By leveraging FTP, First Holdco can optimize its balance sheet, manage risk, and make informed strategic decisions, accomplishing its goal of becoming a leader in the industry.

First Holdco :Executing Masterful Strategies .

First Holdco’s leadership is not oblivious of the above challenges ; without any doubt, the bank is firmly in touch with reality. It is currently at work ,sleeves rolled up for a big bang . When you peep hard into the interior workings of this bank , what indeed do you see? Whatever you see, one big fact stares   you in the face: it is glaring that  First Holdco under a new leadership is now getting smarter by the day. It is  jazzing up, vibrantly repositioning, restructuring, re-engineering and transplanting, to tap optimally into the sweeping opportunities which it  perceives now dotting  the entire banking land-escape.

The management is actively addressing those challenges to normalize credit costs and improve profitability; First HoldCo is currently focusing on driving revenue growth, optimizing costs, and maintaining a robust risk management framework, setting the stage for a remarkable turnaround ‘

In the relentless pursuit of industry leadership, First Holdco is executing masterful strategies, navigating the three critical stages of competition: industry foresight, shaping industry development, and market share dominance. This calculated approach positions the bank to redefine the Nigerian banking landscape.

With a focus on innovation, customer-centricity, and strategic partnerships, First Holdco is gaining industry foresight, anticipating emerging trends, and conceiving new customer benefits. The bank’s transformation agenda is sparking a revolution, leveraging visionary leadership, cultural change, and structural reforms to drive growth.

As First Holdco shapes industry development, it’s influencing direction, accumulating competencies, and building coalitions. The bank is testing product concepts, attracting partners, and shaping emerging industry structures, setting the stage for market dominance.

In the market share battle, First Holdco is poised to excel, leveraging its strengths to drive revenue growth, optimize costs, and maintain a robust risk management framework. By prioritizing industry foresight and shaping industry development, the bank is creating new opportunities and establishing a strong market position.

First Holdco’s holistic approach is a blueprint for success, demonstrating that industry leadership requires a delicate balance of strategic foresight, innovation, and execution. As the bank continues to execute its transformation agenda, it’s clear that First Holdco is on a path to reclaim industry leadership and redefine the future of banking in Nigeria .

Specifically , First HoldCo is taking proactive steps to rebuild and transform its business, recognizing that the banking industry is undergoing a profound revolution driven by technological advancements, changing customer expectations, and shifting regulatory landscapes. The company’s leadership, under Femi Otedola, is driving this change by reimagining its competitive edge, rethinking its growth strategies, and reinventing its organizational DNA. This involves investing in digital transformation, prioritizing customer-centricity, and forging strategic partnerships to stay ahead of the curve .

First HoldCo’ is also making critical to rebuild its profit engine : a lifeblood and well-tuned system that generates revenue and sustains growth , a deeply ingrained mindset that defines the business, its customers, and its competitive landscape, fueled by a clear understanding of the served market, a compelling value proposition, and a robust margin structure.

Its efforts to rebuild its profit engine are crucial, as the status quo is no longer an option in today’s fast-paced business environment. This company is creating a sense of urgency among its employees and stakeholders, recognizing that the future of banking is being shaped by emerging technologies like artificial intelligence, blockchain, and the Internet of things . By anticipating and preparing for these changes, First HoldCo is positioning itself for long-term success, rather than simply relying on its past achievements.

Optimizing The Profit Engine

For a company like First Holdco, understanding and optimizing its profit engine is crucial to maintaining industry leadership. The bank’s transformation agenda is, in essence, a recalibration of its profit engine, ensuring it remains efficient and effective in a rapidly changing market. A well-functioning profit engine requires constant vigilance, questioning assumptions about the served market, margin structure, and delivery mechanisms. It’s about identifying potential vulnerabilities and opportunities for innovation, ensuring the company stays ahead of the competition.

Without any doubt , First HoldCo is riding the wave of cataclysmic change that’s reshaping the banking industry. Under the leadership of Femi Otedola, the company is undergoing a profound transformation, leveraging emerging technologies and innovative strategies to stay ahead of the curve. The bank’s bold move to establish a new head office complex at Eko Atlantic City is a testament to its commitment to innovation and customer experience. This futuristic hub will drive financial innovation, digital transformation, and operational excellence, positioning First HoldCo as a leader in the Nigerian banking sector.

Rethinking the Game: How First Holdco’s Transformation is Paying Off

First HoldCo’s transformation is revolutionizing Nigeria’s banking landscape. Under Femi Otedola’s leadership, the company is leveraging emerging technologies, anticipating customer needs, and challenging industry norms to build a sustainable competitive advantage. Its strategic architecture prioritizes research and development, entrepreneurship, and cross-functional collaboration, focusing on niche markets and exceptional customer service.

The company’s agile structure is empowering decision-making at the front lines, fostering collaboration, and driving innovation. Digital transformation has streamlined processes, reduced transaction times, and improved customer satisfaction. Partnerships with tech giants like Microsoft are enhancing digital capabilities, positioning First HoldCo for long-term success.

First HoldCo’s strategic investments in people, information, finance, and technology are driving sustainable growth and innovation. Its focus on cutting-edge technology is improving operational efficiency and customer experience. With a strong balance sheet and diversified revenue streams, First HoldCo is poised to disrupt the Nigerian financial landscape and deliver unparalleled value to stakeholders ..

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