Financial services group First HoldCo Plc has officially approved a new dividend policy committing to distribute at least 60% of its annual Profit After Tax (PAT) to shareholders. The announcement follows a historic first-half performance characterized by robust earnings expansion, improved capital adequacy, and the successful execution of its multi-year turnaround strategy.
According to a official statement signed by Group Company Secretary Abiola Baruwa, the Board of Directors approved the policy during its meeting on July 28, 2026. The policy remains subject to customary regulatory approvals before taking effect for upcoming distributions.
Board Confidence and Governance Reforms
The updated payout commitment underscores the Board's growing confidence in First HoldCo’s earnings durability, capital strength, and overall balance sheet quality following extensive structural reforms.
Commenting on the resolution, Group Chairman Femi Otedola emphasized that the enhanced dividend commitment directly rewards shareholders for their patience through two years of intensive restructuring:
"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. 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. We are now beginning to see the benefits of those strategic decisions."
Financial Highlights: Record-Breaking H1 2026 Earnings
The policy adoption comes on the heels of the Group's strongest half-year performance on record for the period ended June 30, 2026:
- Profit After Tax (PAT): Surged 81.6% year-on-year to N526.1 billion, up from N289.7 billion in H1 2025.
- Profit Before Tax (PBT): Climbed 83.5% year-on-year to N653.54 billion, compared to N356.15 billion in the same period last year.
- Quarterly Momentum: Q2 2026 PBT rose to N332.42 billion—a 3.52% increase over Q1 2026 (N321.12 billion) and a 95.92% surge compared to Q2 2025 (N169.67 billion).
- Gross Earnings: Reached N1.93 trillion, up 16.7% year-on-year.
- Operating Income: Expanded 25.8% year-on-year to N1.38 trillion.
Capital Restoration and Balance Sheet Cleanup
Through earnings retention, balance sheet restructuring, and ongoing recapitalisation initiatives, First HoldCo has successfully restored flagship subsidiary FirstBank’s Capital Adequacy Ratio (CAR) comfortably above regulatory requirements ahead of internal schedules.
Key operational and capital milestones include:
- Capital Expansion: The Group remains on course to achieve its target of N1 trillion in paid-in capital, strengthened by successful recent Rights Issue and Private Placement exercises.
- NPL Recoveries: Year-to-date, the Group has successfully recovered N60 billion in legacy non-performing loans (NPLs), significantly derisking its credit portfolio.
Full-Year 2026 Outlook
Looking ahead, executive management holds an optimistic view for the remainder of the financial year. Chief Executive Officer of FirstBank, Olusegun Alebiosu, indicated that full-year 2026 Profit Before Tax is projected to cross the N1.2 trillion mark.
This upgraded guidance is anchored on the productive deployment of fresh recapitalisation funds, sustained cost disciplines, and continued momentum in bad debt recoveries across key operating segments.
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