The board of First HoldCo Plc, on Thursday announced its approval of a policy to distribute a minimum of 60% of its Profit After Tax (PAT) as dividends to shareholders annually, subject to applicable regulatory approvals.
This, it said, reflects “confidence in the Group’s earnings capacity, strengthened capital position, improving asset quality, diversified revenue streams, and strong outlook for sustained profitability and growth.
The resolution, according to the Group Chairman, Femi Otedola, “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.
“Over the last two years, we have undertaken difficult but necessary actions to strengthen governance, clean up the balance sheet, restore confidence, rebuild capital, and reposition the Group for long-term growth,” he said, stressing that the group is beginning to see the benefits of those strategic decisions.
As performance continues to improve across our businesses, he said “it is only appropriate that our shareholders participate more directly in the value being created.”
In a notice to through the NGX portal by Abiola Baruwa, the Group Company Secretary, First HoldCo explained that “the enhanced dividend policy announcement follows the Group’s outstanding financial performance for the half-year ended June 30, 2026, which underscores the success of its transformation agenda and the effectiveness of recent Board and management initiatives.”
For the first half of 2026, it said First HoldCo delivered exceptional results, with Gross Earnings growing by 16.7% year-on-year to ₦1.93 trillion, of which Operating Income improved by 25.8% to ₦1.38 trillion; while Profit Before Tax recorded an 83.5% leap to ₦653.5 billion. Net profit for the period stood at ₦526.1 billion, up 81.6% year-on-year; while Total Assets jumped to ₦30.6 trillion of which Customer Deposits amounted to ₦21.9 trillion.
The half-year result, the statement added, reinforce the scale, resilience, and earning power of the Group’s franchise, reflecting the continued strength of the banking business, as well as the growing contribution of the Group’s non-banking subsidiaries, validating the Board’s strategy of building a diversified financial services ecosystem.
A key driver of growth, the group stressed, “was the significant expansion in non-interest income, which increased to ₦497.1 billion, supported by robust performance across electronic banking, trade services, funds transfer, brokerage, asset management, investment banking, and other transaction-led businesses.”
Investment Banking and Asset Management businesses, it said, maintained their strong growth trajectory, generating approximately ₦46 billion in gross earnings and ₦27.4 billion in profit before tax during the period, further strengthening earnings diversification and reducing dependence on traditional banking revenues.
The Group added that its improved performance has also been driven by one of the most comprehensive balance-sheet transformation programmes undertaken within the Nigerian financial services industry.
Through decisive actions to address legacy asset quality concerns, enhance
governance standards, strengthen risk management, and optimize capital allocation, FirstHoldCo further assured that it “has emerged stronger, healthier, and more resilient.
It particularly “noted with satisfaction the successful restoration of its Capital Adequacy Ratio (CAR) above the regulatory threshold ahead of expectations, alongside a strong liquidity position that reflects the effectiveness of the Group’s recapitalization initiatives, earnings retention strategy, and prudent risk management framework.
“This achievement provides a solid platform for future growth while ensuring the Group remains well positioned to support customers, pursue strategic opportunities, and generate sustainable returns for shareholders,” it stressed further.
As it moves toward its ₦1 trillion paid-in capital objective, while continuing to meet evolving regulatory capital requirements, the Group says it remains well positioned to deploy capital efficiently across its businesses while maintaining an appropriate balance between growth investments and shareholder returns.
According to the statement, the board equally noted the growing confidence of investors in the group, evidenced by the successful completion of its recent capital-raising programmes through Rights Issue and Private Placement transactions, as well as strengthening market sentiment and renewed confidence in the Group’s strategic direction and future prospects.
Led by Otedola, the group said it “has embarked on a bold transformation agenda centered on governance excellence, capital restoration, operational efficiency, business diversification, and shareholder value creation.”
The results achieved so far, it believes, reflect a strong record of execution and a steadfast commitment to building a world-class financial services institution. With strong momentum from the first half of the year, improving fundamentals across its businesses, enhanced capital strength, and a clear strategic direction, the Board remains confident that the Group’s positive performance trajectory will continue through the remainder of 2026 and beyond, Baruwa further stressed.
