First HoldCo don post 31.63% return on average equity for first quarter of 2026, and e be the highest of any tier-1 bank for Nigeria or South Africa. The company own investor presentation put the figure against four Nigerian competitors and six South African ones. Half-year number na 30.37%.
Return on average equity na wetin bank earn on capital shareholders put inside, and na the one number bank investors dey watch pass. Anything above 20% dey considered strong. Nothing for either market match am. Zenith Bank return 24.90% for quarter, GTCO 24.80%, Access Holdings 19.86% and United Bank for Africa 13.70%. The five Nigerian banks average 22.98% with median 24.80%.
South African comparison run over twelve months, not quarter, so e no directly comparable, but gap wide. Capitec come closest at 29.12%, FirstRand 19.58%, Standard Bank 18.73%, Absa 13.67%, Investec 12.46% and Nedbank 7.44%. Those six average 16.83% with median 16.20%. Typical Nigerian tier-1 bank earn 8.6 percentage points more on equity than typical South African one, but dem value am at fraction of price.
Capitec trade at 9.03 times book value and 31.87 times earnings, most expensive bank for continent by wide margin, because South African investors don spend decade paying premium for growth. First HoldCo trade at 1.91 times book and 17.56 times earnings. E earn more on equity than Capitec and dem value am around one-fifth of multiple. Among Nigerian banks, e be the expensive one. Access Holdings sit at 0.43 times book and 2.19 times earnings, Zenith at 1.01 and 5.01, UBA at 0.49 and 5.83, GTCO at 1.35 and 5.65. Nigerian median na 1.01 times book and 5.65 times earnings, and First HoldCo trade at nearly twice first and more than three times second.
Its shares don rise 194.4% this year, strongest gain of any Nigerian bank. Buying behind rise dey disclosed all year. Femi Otedola own roughly 27.6% of company and chair am, and he don file purchase after purchase with exchange, taking shares to record 159.90 naira on Sept. 1. He don talk publicly say he intend to pass 51%. Sustained buying on that scale remove stock from circulation and support price independent of wetin bank earn.
First HoldCo now worth 6.7 trillion naira, about $5.08 billion, making am most valuable bank for Nigeria. Zenith na only other lender above 5 trillion. GTCO sit just above 4.7 trillion, Stanbic IBTC around 2.4 trillion, UBA about 1.9 trillion and Access Holdings roughly 1.5 trillion. Whole sector don re-rate. NGX Banking Index gain 67.96% in year to Sept. 14 against 56.35% for broader market, and twelve largest banks go from 16.44 trillion naira in December to 27.61 trillion, adding 11.17 trillion. Average price to earnings across them rise from 4.38 times to 5.83, and price to book from 0.86 to 1.26. Nigerian banks still trade below comparable lenders for Kenya, South Africa, Ghana and Tanzania.
There be reason for discount wey bear directly on First HoldCo own numbers. Naira collapse after 2023 foreign exchange reforms produce large currency revaluation gains wey flow straight into reported profits, and investors find am difficult to separate those from recurring operating earnings. As exchange rate stabilise, banks got to show say returns come from lending, fees and transactions. Return on equity above 30% look different depending on which one e come from.
First HoldCo dey among only six Nigerian companies entering FTSE Frontier 50, the narrower and more exclusive of two indices Nigeria rejoin this month. Frontier 50 take only fifty most liquid across twenty-six frontier markets wey FTSE Russell cover, and na benchmark international funds actually track, which make membership very consequential and highly coveted. Nigeria take six of thirteen new places worldwide. Change take effect after close on Sept. 18, obliging index-tracking funds to buy stock regardless of any view on valuation, and country return to frontier market status on Sept. 21 after three years as unclassified. Company na parent of FirstBank, oldest bank for Nigeria, founded in 1894.
First HoldCo rise 10% to N162.80 on Friday morning, record, adding about N182.6 billion to Femi Otedola stake in single session. Femi Otedola holding pass 2 trillion naira for first time, about $1.52 billion. Move add about N182.6 billion to him stake in single session, roughly $138.4 million. He own 12,338,067,668 shares, about 27.6% of company, and chair am. Ten percent na as far as Nigerian stock fit move for one day. Exchange stop trading once share hit that limit, so buying pressure no get anywhere left by mid-morning.
Wetin dey drive am na deadline. First HoldCo join FTSE Frontier 50 after close on Friday, one of only six Nigerian companies admitted. Funds wey track index got to hold am from Monday, which mean dem got to buy am now, and Friday na last session wey dem fit do am. That index na narrow one. E take fifty most liquid stocks across twenty-six frontier markets wey FTSE Russell cover, and na benchmark international money actually follow. Broader Frontier Index Series carry 375 stocks and admit ten Nigerian names. Nigeria take six of thirteen new places worldwide for Frontier 50. None of am possible eighteen months ago. Nigeria return to frontier market status on Monday, Sept. 21, after three years as unclassified.
Shares already dey run before index decision. First HoldCo gain 194.4% in year to Sept. 14, strongest performance of any Nigerian bank, against 67.96% for banking index and 56.35% for broader market. Previous record, 159.90 naira, set on Sept. 1. Otedola dey buy throughout. He don file purchase after purchase with exchange and talk publicly say he intend to pass 51%. Sustained accumulation by holder that size take stock out of circulation and support price independent of wetin bank earn. Earnings support am too. First HoldCo post return on average equity of 31.63% for first quarter and 30.37% at half year, higher than any tier-1 bank for Nigeria or South Africa, against Nigerian median of 24.80% and South African median of 16.20%. Dem price am accordingly. First HoldCo trade at 1.91 times book value and 17.56 times earnings, against Nigerian median of 1.01 and 5.65. Those returns carry question. Naira collapse after 2023 foreign exchange reforms produce large currency revaluation gains wey flow into Nigerian bank profits, and investors don struggle to separate dem from recurring operating income. As exchange rate steady, banks got to show say money dey come from lending, fees and transactions. First HoldCo na parent of FirstBank, founded in 1894 and oldest bank for Nigeria.
