First HoldCo Plc has given shareholders renewed hope as its Group Managing Director and Chief Executive Officer, Wale Oyedeji, confirmed that dividend payments are expected to resume at the end of the current financial year.
Oyedeji gave the assurance during the company’s 14th Annual General Meeting, which was held virtually on Friday.
Strong Q1 Results Fuel Expectations
The CEO pointed to the group’s robust first-quarter performance as a solid foundation for returning cash to shareholders. Profit before tax grew by 72% to N321 billion in Q1 2026, compared to N186.47 billion in the corresponding period of 2025.
“In terms of dividend expectations, you can build those expectations on our Q1 numbers, which are strong. We hope to sustain those numbers, and we believe dividend payments will resume at the end of this financial year,” Oyedeji said.
He added that the planned increase of the company’s share capital to N1 trillion is designed to fully capitalise all subsidiaries, paving the way for improved earnings and eventual dividend payouts.
Regulatory Capital Constraints in 2025
Oyedeji explained that although a dividend of N1 per share had been proposed earlier, the group could not pay it in 2025 due to strict regulatory directives from the Central Bank of Nigeria (CBN) requiring banks to prioritise capital adequacy.
Operational Improvements and Strategic Focus
The Group CEO described First HoldCo as a diversified financial services group with interests spanning commercial banking, asset management, securities brokerage, and insurance. He said the group is transforming into a “financial supermarket” with increasing focus on non-interest income streams.
Notable operational progress includes an improvement in the cost-to-income ratio from 53–54% in 2025 to 45% in 2026. Oyedeji also highlighted that First Bank, the group’s flagship subsidiary, now accounts for 21% of all deposit money bank transactions in Nigeria.
The group has successfully met the CBN’s N500 billion minimum capital requirement for First Bank through a combination of market and balance sheet initiatives. Management believes this stronger capital position will support sustained earnings growth and long-term shareholder value creation.
Oyedeji further assured shareholders that the group remains focused on key priorities including cybersecurity enhancement, governance improvement, loan recovery, talent attraction, and the planned relocation to Eko Atlantic.
With its strong Q1 2026 performance and completed recapitalisation exercise, First HoldCo appears well-positioned to deliver improved profitability and resume dividend payments to shareholders by the end of the 2026 financial year, subject to sustained performance and regulatory approvals.
