FirstHoldco, the parent company of several financial services subsidiaries, has announced a policy to distribute 60% of its annual profit as dividends to shareholders. The decision, approved by the Board of Directors, is part of the company's commitment to enhancing shareholder value.
Dividend Policy Details
Under the new dividend policy, FirstHoldco will pay out 60% of its consolidated net profit after tax for each financial year. This represents a significant increase from the previous payout ratio of 40%. The move is expected to attract income-focused investors and boost the company's stock market appeal.
According to a statement signed by the Company Secretary, Mrs. Adaobi Nwosu, the Board believes that the strong financial performance and robust cash flows of the group support this enhanced payout. "Our decision to increase the dividend payout ratio to 60% reflects our confidence in the group's earnings capacity and our commitment to returning value to our shareholders," she said.
Financial Performance and Outlook
FirstHoldco reported a net profit of ₦120 billion for the last fiscal year, which would translate to a dividend of ₦72 billion under the new policy. The company's revenue grew by 15% year-on-year, driven by improved performance in its banking and insurance arms.
Analysts have reacted positively to the announcement. Mr. Chinedu Okoro, a financial analyst at Lagos-based Meristem Securities, said, "This is a bold move that signals strong fundamentals and a shareholder-friendly management. It sets a new benchmark for other holding companies in Nigeria."
The company's shares rose by 3.2% in early trading following the news. FirstHoldco expects to maintain the 60% payout ratio for the foreseeable future, barring any unforeseen economic shocks.
