First HoldCo Plc has approved a new dividend policy committing the group to distribute at least 60% of its annual profit after tax to shareholders. The board endorsed the framework at its meeting on July 28, 2026, according to a statement signed by Group Company Secretary Abiola Baruwa.
The policy remains subject to regulatory approvals and is expected to guide future dividend distributions. It arrives as the group reported an 81.6% year-on-year jump in profit after tax to N526.1 billion for the six months ended June 30, 2026.
Board Confidence in Earnings Strength
First HoldCo said the enhanced dividend commitment reflects the board’s confidence in its earnings capacity, capital position, asset quality and long-term growth prospects. Group Chairman Femi Otedola described the resolution as evidence of the board’s determination to reward shareholders after 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,” Otedola said. He noted that the group had undertaken difficult but necessary actions over the past two years to strengthen governance, clean up the balance sheet, restore confidence, rebuild capital and reposition the business for sustained growth. “We are now beginning to see the benefits of those strategic decisions,” he added.
Otedola said that as performance continues to improve, shareholders should participate more directly in the value being created.
Best Half-Year Results on Record
First HoldCo posted a pre-tax profit of N653.54 billion for the six months ended June 30, 2026, an 83.50% increase from N356.15 billion in the corresponding period of 2025. Second-quarter pre-tax profit came in at N332.42 billion, up 3.52% from N321.12 billion in the first quarter of 2026 and 95.92% higher than the N169.67 billion recorded in the second quarter of 2025.
The group described the half-year results as its strongest ever as one of Nigeria’s largest financial holding companies. Gross earnings rose to N1.93 trillion, a 16.7% increase from the same period in 2025. Operating income climbed 25.8% year-on-year to N1.38 trillion, while profit before tax surged 83.5% to N653.5 billion.
Capital Position Restored Ahead of Schedule
The board said First HoldCo has restored FirstBank’s Capital Adequacy Ratio above the regulatory minimum ahead of expectations. The improvement was driven by recapitalisation initiatives, earnings retention and balance-sheet restructuring. The company said it remains on track to achieve its N1 trillion paid-in capital target while retaining sufficient capital to support future expansion and shareholder returns.
Investor confidence has improved following the successful completion of its recent Rights Issue and Private Placement. The strengthened capital base provides flexibility to pursue strategic growth opportunities while sustaining profitability.
Earlier this month, First HoldCo indicated that profit before tax is expected to exceed N1.2 trillion for the full year 2026. FirstBank CEO Olusegun Alebiosu disclosed the projection in an interview, linking the improved outlook to fresh capital from the recapitalisation programme, tighter cost control and stronger recoveries from the non-performing loan book. First HoldCo has recovered N60 billion in bad loans so far this year.
Shareholder Returns and Market Signal
The new dividend policy means shareholders are positioned to receive a larger share of future profits. For the broader market, the combination of record half-year earnings, restored capital buffers and a formal commitment to higher payouts signals that the group’s restructuring and recapitalisation efforts are translating into measurable returns.
