First HoldCo to pay out 60% of annual profit as dividends

First HoldCo Plc has approved a new dividend policy committing to distribute at least 60% of its annual profit after tax (PAT) to shareholders, as the financial services group reported a strong first-half performance driven by robust earnings growth and an improving capital position.

According to a statement signed by the Group Company Secretary, Abiola Baruwa, the new policy was approved by the Board of Directors at its meeting held on July 28, 2026.

The policy is subject to applicable regulatory approvals and is expected to take effect for future dividend distributions.

The announcement comes after the Group reported an 81.6% year-on-year increase in profit after tax to N526.1 billion for the six months ended June 30, 2026, underscoring what the company described as the success of its ongoing transformation programme.

What they are saying

According to the company, the enhanced dividend policy reflects the Board’s confidence in FirstHoldCo’s earnings capacity, capital position, asset quality and long-term growth prospects.

Group Chairman, Femi Otedola, said the decision demonstrates the Board’s commitment to rewarding shareholders following two years of restructuring and governance reforms.

• “This resolution demonstrates the Board’s confidence in the strength of our franchise, the sustainability of our earnings, and our commitment to delivering tangible value to shareholders.
• “Over the last two years, we have undertaken difficult but necessary actions to strengthen governance, clean up the balance sheet, restore confidence, rebuild capital, and reposition the Group for long-term growth. We are now beginning to see the benefits of those strategic decisions,” Otedola said.

He added that as the Group’s performance continues to improve, shareholders should participate more directly in the value being created.

Get up to speed

Nairametrics earlier reported that First HoldCo Plc posted a pre-tax profit of N653.54 billion for the six months ended 30 June 2026, representing an 83.50% increase year-on-year from N356.15 billion in the corresponding period of 2025.

• In the second quarter, the Group posted a pre-tax profit of N332.42 billion, up 3.52% from the estimated N321.12 billion recorded in the first quarter of 2026 and up 95.92% from N169.67 billion in the second quarter of 2025.
• The H1 2026 results came as the best ever half-year reported by one of Nigeria’s largest financial holding companies.
• The Group also reported gross earnings of N1.93 trillion for the first half of 2026, representing a 16.7% increase from the corresponding period of 2025.

Operating income rose by 25.8% year on year to N1.38 trillion, while profit before tax surged 83.5% to N653.5 billion.

Capital restoration supports growth

The Board said FirstHoldCo has successfully restored FirstBank’s Capital Adequacy Ratio above the regulatory minimum ahead of expectations following its recapitalisation initiatives, earnings retention strategy and balance sheet restructuring.

The company noted that it remains on track toward achieving its N1 trillion paid in capital target while maintaining sufficient capital to support future business expansion and shareholder returns.

It also said investor confidence has improved following the successful completion of its recent Rights Issue and Private Placement, adding that the strengthened capital base provides flexibility to pursue strategic growth opportunities while sustaining profitability.

What you should know

Earlier this month, First HoldCo said it expected profit before tax to exceed N1.2 trillion for the full year 2026, as its recapitalisation drive and a clean-up of legacy bad loans begin to pay off.

The Chief Executive Officer of FirstBank, Olusegun Alebiosu, who  disclosed the projection in an interview with Bloomberg, tied his improved outlook to fresh capital deployed from the Group’s ongoing recapitalisation programme, tighter cost control, and stronger recoveries from its non-performing loan book.

First HoldCo recovered N60 billion in bad loans so far this year, part of a broader push to clean up its balance sheet.