FBN Holdings injects N25 billion into FirstBank
FBN Holdings Plc (FBNH) has announced the injection of N25 billion equity capital into its commercial banking subsidiary, First Bank of Nigeria Limited.
The Capital injected represents part of the net proceeds of the company’s divestment from FBN Insurance Limited.
With this capital injection, representing part of the net proceeds of the firm’s divestment from FBN Insurance Limited, the Capital Adequacy Ratio (CAR) of Firstbank increased to 16.53 per cent, before capitalising year to date profit, as at June 2020.
In a statement, the Chief Financial Officer, FBNH, Oyewale Ariyibi, said the divestment was in line with the Group’s medium to long term strategic objectives, and has unlocked significant value embedded in the former subsidiary, which the company is leveraging to strengthen its core banking business.
According to him, the overriding objective is to optimize capital across the Group to drive business growth, enhance efficiency, and improve overall Shareholders’ value.
Commenting on the Group’s Half Year (H1) 2020 performance, Group Managing Director, UK Eke, said the H1 2020 financial results were impressive and reconfirms the group’s consistent focus on enhancing shareholder value.
He said: “Despite the difficult operating environment, the results demonstrate our capacity to deliver exceptional services to our customers in these uncertain times.
“Looking ahead, we remain cautious, but confident that our business is fundamentally strong to surmount any future challenge towards delivering superior financial performance.”
FBN Holdings is a leading diversified financial services group in Nigeria and the parent company of First Bank of Nigeria Limited, FBNQuest Merchant Bank Limited, FBNQuest Capital Limited, FBNQuest Trustees Limited and FBN Insurance Brokers Limited.