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First HoldCo Plc has unveiled a new shareholder-focused dividend policy that commits the financial services group to distributing at least 60% of its annual profit after tax (PAT) as dividends, marking one of the most generous payout commitments among Nigeria’s tier-one financial institutions.
The policy, approved by the company’s Board of Directors during its July 28, 2026 meeting, remains subject to applicable regulatory approvals and will guide future dividend distributions. The announcement follows the Group’s record-breaking first-half financial performance, which reflected strong earnings growth, improved capital strength and continued progress in its transformation programme.
Board Signals Confidence in Long-Term Earnings
According to First HoldCo, the enhanced dividend policy reflects the Board’s confidence in the Group’s profitability, strengthened capital position, improving asset quality and long-term growth outlook.
The company said its decision demonstrates a commitment to ensuring shareholders benefit directly from the value being created through ongoing operational improvements and strategic reforms.
Otedola: Time to Reward Shareholders
Group Chairman Femi Otedola described the new dividend framework as a reflection of the Board’s confidence in the institution’s renewed financial strength following two years of intensive restructuring.
He noted that the Group had undertaken significant governance reforms, strengthened risk management, rebuilt capital, improved the quality of its balance sheet and restored investor confidence.
According to Otedola, those strategic initiatives are now translating into stronger financial performance, making it appropriate for shareholders to receive a larger share of the company’s earnings.
Record Half-Year Results Support New Policy
The dividend announcement comes on the heels of one of First HoldCo’s strongest financial performances on record.
For the six months ended June 30, 2026, the Group reported:
- Profit before tax: ₦653.54 billion, up 83.5% year-on-year.
- Profit after tax: ₦526.1 billion, representing an 81.6% increase.
- Gross earnings: ₦1.93 trillion, a 16.7% rise from the corresponding period in 2025.
- Operating income: ₦1.38 trillion, up 25.8% year-on-year.
The second quarter also delivered strong momentum, with pre-tax profit rising to ₦332.42 billion, reflecting continued earnings growth across the Group’s operations.
Diversified Revenue Strengthens Business
Beyond traditional lending, First HoldCo recorded substantial growth in non-interest income, reflecting increasing contributions from its diversified financial services businesses.
Revenue from electronic banking, trade finance, funds transfers, investment banking, brokerage and asset management played a significant role in boosting earnings during the reporting period.
The Group’s investment banking and asset management subsidiaries generated approximately ₦46 billion in gross earnings and ₦27.4 billion in pre-tax profit, underscoring the growing importance of fee-based income in its overall performance.
Capital Position Continues to Improve
The Board also disclosed that FirstBank’s Capital Adequacy Ratio (CAR) has been restored above the regulatory minimum ahead of schedule, following the successful execution of recapitalisation initiatives, earnings retention and balance sheet optimisation.
According to the company, it remains on course to achieve its ₦1 trillion paid-in capital target, while maintaining sufficient capital buffers to support business expansion and sustain shareholder returns over the long term.
Positive Signal for Investors
The adoption of the new dividend policy is expected to strengthen investor confidence by providing greater clarity on future shareholder returns.
Market analysts view the move as an indication that First HoldCo is confident in its ability to balance regulatory capital requirements, business expansion and consistent dividend payments.
The announcement also reflects a broader trend among Nigeria’s leading financial institutions, which are increasingly leveraging stronger earnings and improved capital positions to enhance shareholder value while navigating the Central Bank of Nigeria’s ongoing recapitalisation programme.
Positioning for Sustainable Growth
With a stronger balance sheet, improving profitability and a clear dividend strategy, First HoldCo appears focused on sustaining long-term value creation for investors.
The new payout policy reinforces the Group’s transformation agenda while signalling confidence that recent governance reforms, capital strengthening and operational improvements have laid a solid foundation for future growth.
For shareholders, the commitment to distribute at least 60% of annual profit represents a significant milestone that aligns improved corporate performance with enhanced investor returns, positioning First HoldCo among the most shareholder-friendly financial institutions in Nigeria.
