First HoldCo Plc has adopted a formal dividend policy committing to distribute a minimum of 60% of its annual Profit After Tax (PAT) to shareholders, positioning the country’s oldest financial services group for an unprecedented payout cycle.
The decision—approved by the Board of Directors on July 28, 2026—comes as the group’s full-year 2026 net profit tracks above the ₦1 trillion mark. With approximately 45 billion ordinary shares outstanding, a 60% payout ratio could yield a full-year dividend distribution of up to ₦15 per share, representing one of the highest cash yields for financials listed on the Nigerian Exchange.
The enhanced policy follows a 150% rally in First HoldCo shares year-to-date (July 30th), driven by sustained earnings expansion, capital restoration, and substantial equity accumulation by Group Chairman Femi Otedola.
Capital Restoration and Non-Banking Diversification
The board attributed the aggressive payout policy to one of the most comprehensive balance-sheet transformation programmes undertaken within the Nigerian financial services industry, and a faster-than-expected recovery in capital adequacy metrics.
Through decisive actions to address legacy asset quality concerns, enhance governance standards, strengthen risk management, and optimize capital allocation, FirstHoldCo has emerged stronger, healthier, and more resilient.
FirstBank, the group’s flagship banking subsidiary, restored its Capital Adequacy Ratio (CAR) above central bank regulatory minimums ahead of internal timelines, supported by retained earnings and recent capital-raising programs executed via Rights Issue and Private Placement transactions. The group is progressing toward its target of ₦1 trillion in paid-in capital.
Earnings diversification away from core interest income gained traction during the period:
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Transaction Income: Non-interest income rose to ₦497.1 billion, underpinned by electronic banking fees, trade financing, funds transfer charges, and brokerage commissions.
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Investment Banking & Asset Management: The non-banking capital market units contributed ₦46.0 billion in gross earnings and ₦27.4 billion in pre-tax profit, buffering the group against interest rate shifts.
Market Implications and Outlook
The announcement reinforces First HoldCo’s position as Nigeria’s most valuable listed lender, with total assets crossing ₦30.6 trillion and customer deposits reaching ₦21.9 trillion at the end of June 2026.
“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,” Group Chairman Femi Otedola said in a statement accompanying the policy release.
Equity analysts expect the commitment to a 60% payout floor to provide further valuation support for the stock, attracting income-focused institutional funds seeking yield stability in the domestic equity market.
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