FBN Holdings Plc has announced the injection of N25billion equity capital into its commercial banking subsidiary, First Bank of Nigeria Limited.
The capital injected represented part of the net proceeds of the company’s divestment from FBN Insurance Limited.
In a statement from the bank, the company noted that with this fresh capital, the Capital Adequacy Ratio (CAR) of Firstbank has increased to 16.53 percent (before capitalising year to date profit) as at June 2020.
The Chief Financial Officer of the Company, Oyewale Ariyibi, said: “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.”
While commenting on the Group’s Half Year 2020 performance, UK Eke, the Group Managing Director stated: “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”.