FirstHoldCo Plc has unveiled a new dividend policy that commits the financial services group to paying out at least 60 percent of its annual profit after tax to shareholders, a move that signals growing confidence in its financial strength and long-term outlook following an extensive corporate transformation.
The decision, approved by the company's board on July 28 and announced on Thursday, positions FirstHoldCo among the Nigerian banking groups with one of the most generous dividend payout commitments. The policy also reflects management's belief that the sweeping governance, capital, and operational reforms implemented over the past two years are beginning to deliver measurable returns.
The announcement comes shortly after Chairman Femi Otedola increased his stake in the company through the acquisition of an additional 1.779 billion shares valued at N222.2 billion, further consolidating his position as a major shareholder in Nigeria's oldest banking institution.
According to the board, the enhanced dividend policy is backed by stronger earnings, improved capital buffers, healthier asset quality, a broader revenue mix, and expectations of sustained profitability. However, dividend payments will remain subject to the approval of relevant regulatory authorities.
The development is expected to strengthen investor confidence and make the company's stock more attractive to income-focused investors on the Nigerian Exchange if the payout strategy is consistently maintained.
Speaking on the decision, FirstHoldCo Chairman, Femi Otedola, described the new dividend commitment as evidence of the board's confidence in the institution's future.
"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 company had spent the last two years implementing far-reaching reforms aimed at rebuilding the institution and restoring confidence among investors and stakeholders.
"We have spent the last two years rebuilding governance, cleaning up our balance sheet, restoring confidence, strengthening capital, and repositioning the institution for long-term growth. We are now beginning to see the benefits of those strategic decisions," he added.
The optimistic outlook is supported by the group's impressive financial performance for the first half of 2026.
For the six months ended June 30, 2026, FirstHoldCo reported gross earnings of N1.93 trillion, representing a 16.7 percent increase compared to the corresponding period last year. Operating income also rose by 25.8 percent to N1.38 trillion.
Profitability recorded even stronger growth. Profit before tax climbed by 83.5 percent to N653.5 billion, while profit after tax surged 81.6 percent to N526.1 billion, underscoring the group's strong earnings momentum.
The balance sheet also expanded significantly during the period. Total assets increased to N30.6 trillion, while customer deposits reached N21.9 trillion, reflecting continued customer confidence and business growth.
A notable feature of the half-year results was the increasing contribution of non-interest income, highlighting the group's progress in diversifying earnings beyond traditional lending activities.
Non-interest income rose sharply to N497.1 billion, driven by stronger performance across electronic banking services, trade finance, funds transfers, brokerage operations, asset management, and investment banking businesses.
The group's investment banking and asset management subsidiaries also delivered solid results, generating approximately N46 billion in gross earnings and N27.4 billion in profit before tax during the review period, reinforcing the growing importance of fee-based businesses within the group's earnings mix.
The board further disclosed that FirstBank successfully restored its Capital Adequacy Ratio above the regulatory minimum ahead of schedule, describing the achievement as a clear indication that its recapitalisation programme, earnings retention strategy, and strengthened risk management framework are producing the desired results.
The dividend announcement comes at a time when Nigerian banks are navigating the twin challenge of meeting the Central Bank of Nigeria's higher capital requirements while maintaining attractive returns for shareholders.
Rather than focusing solely on capital preservation, FirstHoldCo is signalling that it believes it can simultaneously strengthen its capital base, finance future expansion, comply with regulatory requirements, and continue rewarding investors through higher dividend payouts.
The company also reaffirmed its commitment to achieving its N1 trillion paid-in capital target while maintaining adequate financial flexibility to support expansion across its various business segments. It added that the successful completion of its rights issue and private placement exercises reflects renewed investor confidence in the group's strategic direction and long-term growth prospects.