First HoldCo adopts 60% minimum dividend policy after bad loan cleanup
First HoldCo's board adopted a new dividend policy this week (Tuesday meeting, Thursday filing) requiring distribution of at least 60% of annual post-tax profit to shareholders. This ends the dividend hiatus caused by 2025's massive ₦748.1 billion bad loan provision mandated by CBN's cleanup of Covid-era forbearance loans.
The policy matters for shareholders who received no dividends in 2025 despite the group's ₦147.3B profit (down from ₦663.5B). It signals confidence in recovery, backed by H1 2026 results: revenue up 16.7% to ₦1.9T, after-tax profit jumping to ₦526.3B from ₦283.8B. Unlike peers UBA and Access Holdings still restricted by provisions, First HoldCo signals restored profitability.
Shareholders should note this distinguishes First HoldCo from peers still under dividend restrictions. With Otedola increasing his stake to 26% via 1.78B share purchase, management appears aligned with shareholder returns. Exact payout timing and ratios will follow subsequent announcements.