Key points
- First HoldCo has approved a dividend policy to pay out at least 60% of annual profit after tax to shareholders.
- The policy was approved by the Board on July 28, 2026, subject to regulatory approvals.
- The Group reported an 81.6% year-on-year increase in profit after tax to ₦526.1 billion in the first half of 2026.
- Profit before tax rose 83.5% to ₦653.5 billion, while gross earnings increased to ₦1.93 trillion.
- The company said it has restored FirstBank’s Capital Adequacy Ratio above the regulatory minimum ahead of schedule.
Main Story
First HoldCo Plc has approved a new dividend policy that commits the financial services group to distributing at least 60 per cent of its annual profit after tax (PAT) to shareholders, reinforcing its commitment to enhancing shareholder returns amid improving financial performance.
The company disclosed in a statement signed by its Group Company Secretary, Abiola Baruwa, that the Board of Directors approved the policy at its meeting held on July 28, 2026.
According to the statement, the new dividend policy remains subject to applicable regulatory approvals and will take effect for future dividend distributions.
The announcement follows the Group’s strong financial performance for the first half of 2026, during which profit after tax increased by 81.6 per cent year-on-year to ₦526.1 billion, reflecting what the company described as the positive impact of its ongoing transformation programme.
The Group also recorded a pre-tax profit of ₦653.54 billion for the six months ended June 30, 2026, representing an 83.5 per cent increase from ₦356.15 billion reported during the corresponding period in 2025.
Gross earnings rose by 16.7 per cent to ₦1.93 trillion, while operating income climbed 25.8 per cent year-on-year to ₦1.38 trillion, making the first half of 2026 the strongest six-month financial performance in the company’s history.
First HoldCo attributed the improved results to stronger earnings, enhanced operational efficiency, balance sheet restructuring and sustained execution of its recapitalisation strategy.
The company also announced that it has restored FirstBank’s Capital Adequacy Ratio above the regulatory minimum ahead of schedule through recapitalisation initiatives, earnings retention and improvements to its balance sheet.
It added that the Group remains on course to achieve its ₦1 trillion paid-in capital target, while maintaining sufficient capital to support future expansion and enhanced shareholder returns.
The company noted that investor confidence has strengthened following the successful completion of its recent Rights Issue and Private Placement, providing additional flexibility to pursue strategic growth opportunities.
Earlier this month, the Group projected that its profit before tax would exceed ₦1.2 trillion for the full year 2026, driven by fresh capital injection, improved cost management and stronger recoveries from non-performing loans.
First HoldCo disclosed that it has recovered approximately ₦60 billion in bad loans this year as part of its broader strategy to strengthen asset quality and improve long-term profitability.
The Issues
The new dividend policy signals stronger emphasis on shareholder value and consistent returns.
Sustaining high dividend payouts will depend on continued earnings growth and regulatory approval.
The Group’s recapitalisation programme has strengthened its capital position ahead of industry requirements.
Stronger asset quality and loan recoveries have contributed significantly to improved profitability.
Investors will monitor whether the company can sustain earnings momentum while funding future growth.
What’s Being Said
Group Chairman Femi Otedola said the Board’s decision reflects confidence in First HoldCo’s financial strength, sustainable earnings and long-term growth prospects.
According to him, the Group has strengthened corporate governance, cleaned up its balance sheet, rebuilt capital and restored investor confidence through strategic reforms implemented over the past two years.
The company also stated that shareholders should increasingly benefit from the value being created as the Group’s financial performance continues to improve.
What’s Next
The new dividend policy will become effective after receiving the necessary regulatory approvals. Investors will also monitor the company’s progress towards achieving its ₦1 trillion paid-in capital target, meeting its projected ₦1.2 trillion full-year pre-tax profit and sustaining strong earnings growth through the remainder of 2026.
Bottom Line
First HoldCo’s decision to adopt a minimum 60 per cent dividend payout policy marks a significant milestone in its transformation strategy. Backed by record earnings, a stronger capital base and improved governance, the Group is positioning itself to deliver greater long-term value to shareholders while supporting future business expansion.
