First HoldCo has recorded the strongest return on average equity among Nigeria’s five largest banks, posting 31.6 per cent in the first quarter of 2026 and putting its profitability ahead of its major domestic rivals.
The figure, contained in First HoldCo’s investor presentation, measures how effectively the financial group converts shareholders’ capital into profit. Zenith Bank recorded 24.9 per cent, GTCO 24.8 per cent, Access Holdings 19.9 per cent, while United Bank for Africa posted 13.7 per cent.
Together, the five banks averaged just under 23 per cent on the metric. Brandspur Banking News Desk reports that First HoldCo’s 31.6 per cent return therefore stood considerably above the peer group average during the quarter.
The comparison was also extended to six leading South African banks, although those figures covered a 12 month period rather than the single quarter used for the Nigerian banks. Capitec recorded the closest return at 29.1 per cent, followed by FirstRand at 19.6 per cent, Standard Bank at 18.7 per cent, Absa at 13.7 per cent, Investec at 12.5 per cent and Nedbank at 7.4 per cent.
The profitability figures, however, tell only part of the story for investors. First HoldCo’s valuation remains significantly below Capitec’s despite the stronger reported return on equity. The company’s presentation put First HoldCo’s price to book ratio at 1.91 times, compared with 9.03 times for Capitec.
Within Nigeria, First HoldCo trades at a premium to the banking sector, with its book value multiple standing at almost twice the sector median.
The group’s strong performance has also been accompanied by a sharp rise in its share price during the year. Its market value has subsequently made it Nigeria’s most valuable bank, moving ahead of Zenith Bank, GTCO, Stanbic IBTC, United Bank for Africa and Access Holdings.
The wider banking market has also experienced a significant repricing. According to the investor presentation, the combined market value of Nigeria’s 12 largest lenders increased substantially between December and the middle of September.
Return on average equity remains an important measure for bank investors because it provides an indication of how efficiently shareholder funds are being used to generate earnings. A higher ratio generally indicates stronger profitability relative to the equity committed to the business.
For First HoldCo, the latest figure places its first quarter performance in a stronger position than both its largest Nigerian peers and the South African banks included in the company’s comparison, although the periods used for the two sets of figures are not directly identical.
The figures also underline the changing valuation landscape in Nigeria’s banking sector, where rising share prices and stronger profitability have contributed to a broader increase in the market value of leading lenders.
