First HoldCo approves 60% dividend payout policy as H1 profit jumps 81.6%

First HoldCo Plc has approved a new dividend policy committing to distribute at least 60% of its annual profit after tax to shareholders. The board approved the policy at its meeting on July 28, 2026, according to a statement signed by Group Company Secretary Abiola Baruwa.

The policy is subject to applicable regulatory approvals and is expected to take effect for future dividend distributions. It comes as the group posted an 81.6% year-on-year increase in profit after tax to N526.1 billion for the six months ended June 30, 2026.

Board backs higher shareholder returns

First HoldCo said the enhanced dividend policy reflects the board's confidence in its earnings capacity, capital position, asset quality and long-term growth prospects. Group Chairman Femi Otedola said the decision demonstrates the board's commitment to rewarding shareholders after two years of restructuring and governance reforms.

“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.

“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,” he added.

Otedola said that as the group's performance continues to improve, shareholders should participate more directly in the value being created.

H1 2026 results: best half-year on record

First HoldCo posted a pre-tax profit of N653.54 billion for the six months ended June 30, 2026, an 83.50% increase year-on-year from N356.15 billion in the same period of 2025. In the second quarter, pre-tax profit came in at N332.42 billion, up 3.52% from N321.12 billion in the first quarter of 2026 and up 95.92% from N169.67 billion in the second quarter of 2025.

The group described the H1 2026 results as its best ever half-year as one of Nigeria's largest financial holding companies. Gross earnings rose to N1.93 trillion, a 16.7% increase from the corresponding period of 2025. Operating income climbed 25.8% year on year to N1.38 trillion, while profit before tax surged 83.5% to N653.5 billion.

Capital restoration and outlook

The board said First HoldCo has restored FirstBank's Capital Adequacy Ratio above the regulatory minimum ahead of expectations, driven by recapitalisation initiatives, earnings retention and balance sheet restructuring. The company said it remains on track to achieve its N1 trillion paid-in capital target while maintaining enough capital to support future business expansion and shareholder returns.

Investor confidence has improved following the successful completion of its recent Rights Issue and Private Placement, the company said. It added that the strengthened capital base provides flexibility to pursue strategic growth opportunities while sustaining profitability.

Earlier this month, First HoldCo said it expects profit before tax to exceed N1.2 trillion for the full year 2026. FirstBank CEO Olusegun Alebiosu disclosed the projection in an interview with Bloomberg, tying the improved outlook to fresh capital from the recapitalisation programme, tighter cost control and stronger recoveries from its non-performing loan book. First HoldCo has recovered N60 billion in bad loans so far this year.

For Nigerian shareholders, the new dividend policy means a larger share of future profits. For the broader market, it signals that the group's restructuring and recapitalisation are translating into measurable returns.