First HoldCo has announced its commitment to “sustain” dividend payments this year and beyond despite its forbearance exposure, the lender said in a statement on the Nigerian Exchange Thursday.
“As a well-diversified financial holding Company, FirstHoldCo will sustain its dividend payments in 2025 and beyond as we remain committed to our esteemed stakeholders,” the country’s oldest bank said.
First HoldCo is among the lenders affected by the Central Bank of Nigeria’s directive to pause dividends, defer executive bonuses, and halt offshore expansion until they’ve adequately provisioned for forbearance loans and resolved breaches of single obligor limits.
The lender stated that “The SOL breach of our primary subsidiary, First Bank of Nigeria Ltd (“FirstBank” or “the Bank”), is related to two customers with foreign currency loans arising from over 200% currency devaluation in 2023/2024.
Read also: Why Access, Zenith, First Bank may pause dividend payment till 2028 — Report
“With the planned completion of the capital raise in the second half of 2025 among other measures, the Bank will cure the breach in this regard. Furthermore, the Bank’s forborne loans are in respect of syndicated facilities that are industry exposures.
“The consortium of lenders is working to re-tenor the facilities to align with their cash flows as all the assets are back to active production and generating appreciable revenue. Some also have receivables that are awaiting payment from relevant agencies of government,” it said.
The statement added that “Syndicate lenders will ensure the processes are concluded within the current financial year. Any loan not fully re-tenored will be fully provisioned and exit forbearance.”
Meanwhile, the apex bank has affirmed the soundness and resilience of the banking sector, stating that the forbearance directives are part of a broader measure to ensure adequacy and capital base in the sector.
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