First HoldCo Plc has assured shareholders that dividend payments are expected to resume at the end of the current financial year, following a strong first-quarter performance and significant progress in meeting regulatory capital requirements.
The Group Managing Director and Chief Executive Officer, Wale Oyedeji, gave the assurance during the company’s 14th Annual General Meeting held virtually on Friday.
According to Oyedeji, the group’s improved profitability and strong earnings momentum across its subsidiaries have created a solid foundation for renewed dividend expectations.
He explained that regulatory directives relating to capital adequacy prevented the company from paying dividends in 2025, despite earlier plans to reward shareholders.
“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,” he said.
Oyedeji noted that the company’s ongoing efforts to strengthen its capital position would further support future shareholder returns.
“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 added.
He disclosed that although a dividend of N1 per share had been proposed previously, directives from the Central Bank of Nigeria required the group to prioritise capital adequacy across its operating businesses.
First HoldCo delivered a strong financial performance in the first quarter of 2026. Profit before tax rose by 72 per cent to N321 billion, compared to N186.47 billion recorded during the corresponding period in 2025.
The growth was driven by steady interest income generation and strong performance from non-interest revenue streams.
Management described the first quarter as a recovery phase following recent capital strengthening and balance sheet improvement initiatives.
The group said it remains focused on enhancing profitability across all subsidiaries while positioning the business for sustainable long-term returns.
The strong earnings performance has strengthened expectations that shareholders could receive dividends at the end of the financial year, subject to sustained profitability and regulatory approval.
Oyedeji described First HoldCo as a diversified financial services group with operations spanning banking, asset management, securities brokerage, and insurance brokerage.
He said the company’s diversified business model supports its vision of operating as a comprehensive financial services provider while expanding non-interest income sources.
According to him, the group’s cost-to-income ratio improved significantly from between 53 and 54 per cent in 2025 to 45 per cent in 2026, reflecting improved operational efficiency.
He also disclosed that regulatory-related expenses amounted to N180 billion in 2025, noting that many of the costs were unavoidable.
On digital transformation, Oyedeji revealed that First Bank, the group’s flagship banking subsidiary, now processes approximately 21 per cent of all deposit money bank transactions in Nigeria.
“That means roughly one out of every five banking transactions in the country passes through our platform,” he said.
The CEO also addressed issues relating to cybersecurity, corporate governance, loan recovery, and the group’s planned relocation to Eko Atlantic.
He said the company had invested substantially in cyber defence systems, strengthened governance structures across subsidiaries, and maintained focus on asset quality improvement, talent development, earnings growth, share price appreciation, and future dividend payments.
Earlier this year, First HoldCo announced that First Bank of Nigeria Limited had successfully met the CBN’s minimum regulatory capital requirement of N500 billion.
The holding company said the recapitalisation was achieved through a combination of market-based initiatives and balance sheet optimisation measures.
According to management, the strengthened capital position enhances the group’s financial resilience and creates a stronger platform for long-term growth.
The company added that its improved capital base would support business expansion, technology-driven innovation, and the pursuit of new growth opportunities across its key markets.
The CBN’s recapitalisation programme is designed to strengthen banks’ balance sheets, improve their ability to support economic growth, and enhance the stability of Nigeria’s financial system.
With stronger capital buffers, improved profitability, and renewed earnings momentum, First HoldCo appears well-positioned to resume shareholder distributions and pursue its long-term growth strategy.
