By Seun Ibiyemi
Shareholders of First HoldCo Plc may receive dividends again at the end of the current financial year as the company projects improved earnings and stronger capital positions across its subsidiaries.
The Group Managing Director and Chief Executive Officer of First HoldCo, Wale Oyedeji, gave the assurance during the company’s 14th Annual General Meeting (AGM) held virtually on Friday.
According to Oyedeji, the group’s strong first-quarter 2026 performance and improving profitability have created a solid foundation for the resumption of dividend payments after a one-year pause driven by regulatory requirements.
“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.
He explained that although the company had initially proposed a dividend payment of N1 per share, directives from the Central Bank of Nigeria (CBN) on capital adequacy compelled the group to prioritize strengthening the capital base of its operating subsidiaries.
Oyedeji noted that the company’s ongoing effort to raise its share capital to N1 trillion is aimed at ensuring that all subsidiaries remain adequately capitalized and positioned for future growth.
“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.
The assurance comes on the back of a robust first-quarter financial performance by the financial services group.
First HoldCo reported a profit before tax of N321 billion for the first quarter of 2026, representing a 72 per cent increase from the N186.47 billion recorded during the corresponding period in 2025.
The strong earnings growth was driven by improved interest income, resilient fee-based revenue generation, and the benefits of recent capital and balance sheet strengthening initiatives undertaken by the group.
Management said the first quarter marked a significant recovery phase for the company and reaffirmed its commitment to delivering sustainable profitability across its various business lines.
Oyedeji described First HoldCo as a diversified financial services group with interests spanning banking, asset management, securities brokerage, and insurance brokerage, noting that the group’s strategy is to operate as a comprehensive financial services provider.
He said the group’s diversified structure is helping to expand non-interest income streams and reduce dependence on traditional banking revenue.
The CEO also highlighted improvements in operational efficiency, revealing that the group’s cost-to-income ratio declined from between 53 and 54 per cent in 2025 to 45 per cent in 2026.
According to him, the improvement reflects management’s efforts to enhance productivity and optimize operating costs despite significant regulatory expenses.
Oyedeji disclosed that regulatory-related costs amounted to N180 billion in 2025, describing some of the expenses as unavoidable under the prevailing regulatory environment.
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On digital transformation, he revealed that First Bank, the group’s flagship subsidiary, currently processes about 21 per cent of all transactions conducted by deposit money banks in Nigeria.
“Today, one out of every five banking transactions in Nigeria passes through First Bank,” he said, underscoring the institution’s growing role in the country’s financial ecosystem.
He further assured shareholders that the group remains committed to strengthening cybersecurity infrastructure, improving corporate governance standards, recovering impaired loans, attracting top talent, boosting shareholder value, and supporting long-term share price appreciation.
The company is also advancing plans to relocate its headquarters to Eko Atlantic as part of broader efforts to reposition the group for future growth and competitiveness.
