First HoldCo to pay 60% of its annual profit as dividend

First HoldCo Plc says it has adopted a new dividend policy committing to distribute a minimum of 60 percent of its annual profit after tax (PAT) to shareholders, subject to regulatory approvals.

In a statement on Friday, the financial services group said its board approved the policy at a meeting held on July 28.

The company said the decision was driven by confidence in its earnings outlook, capital position, improving asset quality, and diversified revenue base.

Commenting on the decision, Femi Otedola, chairman of First HoldCo, said the policy reflects the board’s confidence in the group’s performance and commitment to shareholder returns.

“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,” Otedola said.

He said the group had spent the past two years strengthening governance, cleaning up its balance sheet, rebuilding capital and repositioning the business for long-term growth.

“We are now beginning to see the benefits of those strategic decisions. As performance continues to improve across our businesses, it is only appropriate that our shareholders participate more directly in the value being created.”
Advertisement
The announcement follows the group’s half-year results for the period ended June 30, 2026

First HoldCo reported gross earnings of N1.93 trillion, a 16.7 percent increase from the corresponding period of 2025, while operating income rose 25.8 percent to N1.38 trillion.

Also, its profit before tax increased by 83.5 percent to N653.5 billion, while profit after tax grew 81.6 percent to N526.1 billion.

The group also reported total assets of N30.6 trillion and customer deposits of N21.9 trillion.

According to the company, non-interest income rose to N497.1 billion, supported by growth in electronic banking, trade services, funds transfers, brokerage, asset management and investment banking businesses.

It added that its investment banking and asset management subsidiaries generated about N46 billion in gross earnings and N27.4 billion in profit before tax during the six-month period.

The company also said FirstBank’s capital adequacy ratio (CAR) has been restored above the regulatory minimum ahead of expectations following its recapitalisation efforts.

First HoldCo said it remains on course to achieve its N1 trillion paid-in capital target while balancing future growth investments with shareholder returns.