FBN Holdings Plc has announced the injection of N25billion 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 fresh capital, the Capital Adequacy Ratio (CAR) of FirstBank has increased to 16.53% (before the capitalising year to date profit) as of June 2020.
In a statement released to the market, the Chief Financial Officer of the Company, Oyewale Ariyibi noted that “the divestment is in line with the Group’s medium to long term strategic objectives. The divestment has unlocked significant value embedded in the former subsidiary which is being leveraged to strengthen the core banking business for which the Group is renowned”.
The overriding objective is to optimize capital across the Group to drive business growth, enhance efficiency, and improve overall Shareholders’ value.
Earlier in the day, while commenting on the Group’s Half Year 2020 performance, UK Eke, the Group Managing Director stated that “The H1 2020 financial results are impressive and reconfirm our consistent focus on enhanced shareholder value. 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. FBNH is the parent company of First Bank of Nigeria Limited, FBNQuest Merchant Bank Limited, FBNQuest Capital Limited, FBNQuest Trustees Limited, and FBN Insurance Brokers Limited.