First HoldCo: Is this the dip you’ve been waiting for?

On the ever-busy Custom Street in Lagos, a name has been echoing among many stock investors with a mix of nervousness and excitement – that is First HoldCo.

For some time now, the financial giant’s stocks seemed untouchable, its stock climbing reaching a 52-week high of N55.3 as it underwent a massive rebranding and strategic overhaul.

But as the 2025 financial earnings season berths, a what looks like a “perfect storm” finally broke the share price trend which came to a low of N41 as at early trading on Monday.

The stock’s new low came after a record daily dip by 8.89 percent, sending the share price into a nosedive that seasoned investors had been eyeing for some time.

Before this dip, analysts had asked investors to include First Holdco in their 2026 portfolio.

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The catalyst for the share drop was a bold, “clean-house” move led by Femi Otedola, group chairman, First Holdco. In a startling reveal on January 31, 2026, the financial institution announced it had taken a massive N748.13 billion one-time hit to account for impairment charge for credit losses, up from N426.29 billion in the previous year, as the bank aggressively provided for non-performing loans in line with tighter regulatory expectations.

This decision, aimed at meeting the Central Bank of Nigeria’s (CBN) stringent new recapitalisation requirements, caused First Holdco’s reported profits to plummet by 92percent to N44.98 billion from the N677.01 billion recorded in 2024, according to its unaudited financial statements posted on the Nigerian Exchange Group (NGX).

To the casual observer, FirstHoldco’s “crashing” profit was a red flag, but to the smart money, it was the sound of a slate being wiped clean.

As the share price dipped to N41, from N49 it was a week ago losing N8 in a matter of days, the narrative at the Lagos Bourse shifted from “crisis” to “opportunity.” Interestingly, the recent “dip” isn’t caused by a failing business, but by a deliberate surgical strike to remove the rot of the past, leaving the institution “better and cleaner” for the 2026 era. By choosing to admit the truth of “old messy loans” now, First Holdco has effectively de-risked its future.

Otedola further defended the move, describing the provisioning as a strategic clean-up exercise aimed at strengthening the group’s balance sheet and restoring confidence.

“At First HoldCo, we decided to clean the house properly. We took a huge one-time hit of N748bn to admit old bad loans instead of pretending they do not exist. That is why profit looks like it crashed by 92 percent. Painful headline, but it is a serious long-term move,” Otedola said in a post on X.

He added that the decision aligned with the Central Bank of Nigeria’s push for banks to transparently address non-performing loans rather than roll them over.

“First HoldCo basically closed the chapter on messy loans from past years, which sends a clear message that borrowing has consequences, and it helps rebuild trust,” Otedola noted.

Despite the heavy provisioning, the group’s core banking business showed resilience.

Interest income rose by 23.6 percent to N2.96 trillion in 2025 from N2.40 trillion a year earlier, supported by growth in loan assets and higher yields in a rising interest rate environment.

Net interest income rose to N1.91 trillion, up from N1.40 trillion in 2024, reflecting improved asset repricing and balance sheet expansion.

“The key point is this: our business itself is still strong. It made N2.96 trillion in interest income and N1.91 trillion in net interest income, which gave it the strength to take the cleanup and still stay standing,” Otedola said.

What seemed like a panic of a few is becoming the entry point for the many, as the market begins to price in the value of First Holdco with no more skeletons in its closet.

No doubt, the story of First HoldCo’s dip is a lesson in market psychology. While many headlines scream about “profit crashes,” the sophisticated investor sees a fortress that has just reinforced its foundations.

For those who believe in the resilience of Africa’s oldest financial institution, the message is clear: the window is open, the price is right, and the dip has finally arrived.