Dividend Payments to Resume at End of Financial Year, First HoldCo Assures Shareholders

First HoldCo Group Managing Director and Chief Executive Officer, Wale Oyedeji, has told shareholders that dividend payments are expected to resume at the end of the current financial year. He gave the assurance at the company’s 14th Annual General Meeting, held virtually on Friday.

Oyedeji said the group’s strong first-quarter performance and improved profitability across subsidiaries provide a basis for renewed dividend expectations. He explained that regulatory directives on capital adequacy prevented the company from paying dividends in 2025, despite earlier expectations.

What They Are Saying

“In terms of dividend expectations, you can build those expectations on our Q1 numbers, which are strong. We hope to sustain those numbers, and we believe dividend payments will resume at the end of this financial year,” Oyedeji said.

“That’s one of the reasons we have approached you to raise our share capital to N1 trillion, ensuring all subsidiaries are well-capitalised. Dividend payments will then follow on the back of improved earnings,” he noted.

Oyedeji explained that although a dividend of N1 had been proposed, regulatory directives from the Central Bank of Nigeria (CBN) required the group to prioritise capital adequacy across its operating entities.

Strong Q1 Performance

First HoldCo Plc delivered a strong performance in its first-quarter 2026 financial results. Profit before tax rose to N321 billion in Q1 2026 from N186.47 billion recorded in the corresponding period of 2025. That represents a 72% year-on-year increase.

The performance was supported by steady interest-earning capacity and strong fee income generation. The first quarter of 2026 marked a strong recovery phase for the group following its recent capital and balance sheet strengthening efforts.

Management said the group remains focused on improving profitability across its subsidiaries while positioning the business for sustainable returns. The strong Q1 performance has strengthened expectations that First HoldCo could resume dividend payments at the end of the current financial year, subject to sustained earnings and regulatory considerations.

Diversified Financial Services Group

Oyedeji described First HoldCo as a diversified financial services group with interests across banking, asset management, securities brokerage, and insurance brokerage. He said the group’s diversified structure supports its ambition to operate as a “financial supermarket,” with emphasis on non-interest income and broader revenue streams.

Oyedeji said the group’s cost-to-income ratio improved from between 53% and 54% in 2025 to 45% in 2026. He described that as evidence of the direction the business is taking. He also noted that regulatory costs stood at N180 billion in 2025, adding that some of these costs were unavoidable.

On digital innovation, he said First Bank, the group’s flagship subsidiary, now processes 21% of all deposit money bank transactions in Nigeria. He described that as “one out of every five transactions.”

Oyedeji also addressed issues around cybersecurity, governance, loan recovery, and the group’s planned relocation to Eko Atlantic. He said the company had invested heavily in cyber protection, strengthened boards across subsidiaries, and remained focused on impairment recovery, growth, talent attraction, share price appreciation, and future dividend payments.

What You Should Know

Earlier in the year, First HoldCo Plc announced that First Bank of Nigeria Limited had successfully met the CBN’s minimum regulatory capital requirement of N500 billion. According to the holding company, the capital raise was completed through a mix of market and balance sheet measures.

First HoldCo said the successful recapitalisation significantly strengthened the group’s financial resilience and positioned it for long-term growth. The group also noted that the strengthened capital base would support earnings expansion through business growth, technology-driven innovation, and new opportunities across its core markets.

The CBN’s recapitalisation programme is aimed at strengthening banks’ balance sheets, improving their capacity to support the economy, and enhancing financial system stability. The development places First HoldCo in a stronger position as the group seeks to deepen capital buffers, improve earnings, and resume shareholder distributions.