First Holdco Hits N6.6trn on 60% Distributable Profit Bets
The market value of FirstHoldco Plc.’s 45.475 billion shares outstanding on the Nigerian Exchange increased by about 11.6% to N6.6 trillion last week.
The banking group continues to enjoy a strong market re-rating as its chairman, Femi Otedola, has enhanced its single largest shareholder stake to about 30%.
FirstHoldco has grown about 5x from its 52-week low, and more than 3x its floor price pre-earnings, not driven by improved fundamentals per se, but more by sentiment and then the ‘Otedola’ factor.
FirstBank of Nigeria’s non-operating holding company is now the largest by stock market capitalisation, ahead of GTCO, Zenith Bank, UBA, and Access Holdings.
FirstHoldco started courting attention after its dividend policy announcement. Before that, the group was moderately priced due to a weak dividend policy and underwhelming share price movement.
Otedola has not really been paid as an investor, and the group’s new dividend policy was part of the broader equation to appease the deep-pocketed investor pumping money into Nigeria’s oldest listed bank.
FirstHoldco will distribute at least 60% of the Group’s profit after tax as dividends to shareholders annually from 2026, subject to applicable regulatory approvals.
The decision reflects the Board’s confidence in the Group’s earnings capacity, strengthened capital position, improving asset quality, diversified revenue streams, and strong outlook for sustained profitability and growth.
In the first half of 2026, FirstHoldco delivered a significant rebound in profitability and bolstered its capital reserves, restoring compliance with minimum regulatory requirements.
Due to a combination of N526 billion in retained earnings and a N45 billion capital injection by FirstHoldco, FirstBank’s capital adequacy ratio (CAR) climbed from 7.57% to 16.7%.
The group’s capital adequacy was bolstered to meet the regulator’s 15% requirement, up from 10.95%. Though FirstHoldco has cleared its capital shortfall, asset quality remains under pressure, with a significant level of non-performing loans on its books.
The group’s asset quality metrics remain weaker than peers’ and a source of downside risk.
The bank’s NPL ratio increased further to 13.9% in June 2026 from 12.2% in 2025, driven by the withdrawal of regulatory forbearance. The group is heavily weighted toward oil and gas loans, with exposure across the energy chain accounting for 45.7% of the loan book.
