Post by Proshare (@Proshare)

First HoldCo's decision to adopt a minimum 60% Profit After Tax (PAT) dividend payout policy represents a significant shift from its historical dividend payout strategy. Between 2021 and 2025, the Group's dividend payout ratio averaged just 5.92%, peaking at 13.35% in 2022, making the new policy a substantial enhancement in shareholder return expectations. The announcement reflects management's confidence in the Group's stronger earnings ability, improved capital allocation, and post-recapitalisation growth prospects.

Investors, however, have observed that the policy triggers sustainable earnings alignment rather than periodic earnings adjustments. Key line items to be reviewed closely include asset quality, capital adequacy, loan growth, loan loss provisions, regulatory approval of dividend distributions, and the Group's ability to balance generous shareholder returns with future investment needs.

If First HoldCo consistently delivers strong profitability while preserving capital buffers and maintaining prudent risk management, the new policy could strengthen its appeal to long-term retail and institutional investors and support hidden value market opportunities.

https://proshare.co/articles/first-holdco-adopts-60-dividend-policy-signalling-stronger-shareholder-return-focus?menu=Market&classification=Read&category=Stock

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