First HoldCo Plc recorded N228.81 billion in other comprehensive losses for the nine months ended September 30, 2026, reducing its total comprehensive income to N515.64 billion despite reporting a 65.1% increase in profit after tax to N744.45 billion.
The financial services group’s unaudited consolidated financial statements showed that the losses arose from adjustments recognised outside the income statement, including changes in the valuation of financial investments and foreign currency translation differences.
The development highlights the distinction between reported profitability and the broader changes in shareholders’ equity captured through other comprehensive income.
First HoldCo’s profit after tax increased to N744.45 billion from N450.87 billion in the corresponding period of 2025, supported by stronger non-interest revenue, recoveries and lower credit impairment charges.
Profit before tax also rose by 60.8% to N911.24 billion from N566.54 billion, indicating improved earnings across the group’s operations.
However, the N228.81 billion negative other comprehensive income reduced the amount recognised as total comprehensive income for the period.
Unlike expenses recorded directly in the income statement, other comprehensive income captures certain gains and losses that accounting standards require companies to recognise separately from profit or loss.
For financial institutions, these may include changes in the fair value of qualifying debt investments and exchange differences arising from translating foreign operations into the reporting currency.
Such adjustments can affect reported equity without necessarily representing an immediate cash outflow or a realised trading loss.
In First HoldCo’s case, the negative adjustments meant that approximately 30.7% of its reported nine-month profit was offset when calculating total comprehensive income.
The group’s financial statements also showed that net interest income declined by 16% to N1.26 trillion from N1.50 trillion, even as profitability improved.
Net fee and commission income increased to N316.43 billion from N213.69 billion, while other operating income rose to N142.06 billion from N23.83 billion.
Credit impairment charges declined to N207.10 billion from N288.92 billion, providing further support to earnings.
Despite the comprehensive losses, First HoldCo’s balance sheet expanded with total assets increasing to N32.20 trillion as of September 30, 2026, from N27.25 trillion at December 2025.
Shareholders’ equity also increased to approximately N3.86 trillion from N3.30 trillion, indicating that the group maintained a stronger reported equity position despite the negative valuation and translation adjustments.
The results underline the importance of assessing both profit after tax and total comprehensive income when evaluating a financial institution’s performance, particularly where movements in investment valuations and foreign exchange translation can materially affect reported equity.
