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%.
The non-operating holding company of FirstBank of Nigeria is now the largest in terms of stock market capitalisation, racing ahead of GTCO, Zenith Bank, UBA and Access Holdings.
FirstHoldco gained market attention following the public notification of its dividend policy. The group was moderately priced due to a weak dividend policy and underwhelming share price movement.
In a regulatory disclosure, FirstHoldco announced approval of a policy to distribute at least 60% of the Group’s Profit After Tax (PAT) as dividends to shareholders annually, 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 to restore compliance with minimum regulatory requirements.
Due to a combination of N526 billion retained earnings and N45 billion capital injection by FirstHoldco, FirstBank’s capital adequacy ratio (CAR) climbed from 7.57% to 16.7%.
Its financial scorecard revealed that FirstHoldco’s capital adequacy rose to 15% in 2025, 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 – lifted by regulatory forbearance withdrawal, as well as the classification of a few large exposures. Oil and gas loans accounted for 45.7% of the loan book. #First Holdco Hits N6.6trn on 60% Distributable Profit Bets# FirstHoldco Falls by 7.2% after Femi Otedola Shares Accumulation
