Nigerian financial services holding group FBN Holdings says that it has injected part of the proceeds from the divestment of its stake in an insurance firm, into its commercial banking subsidiary First Bank of Nigeria Limited.
FBN Holdings said that the injection of 25 billion naira capital into First Bank Limited has raised the banking subsidiary’s capital adequacy ratio to 16.53 per cent (before capitalising year to date profit) as at June 2020.
FBN Holdings’ Chief Financial Officer Oyewale Ariyibi said 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.”
FBN Holdings says that the overriding objective is to optimise capital across the group to drive business growth, enhance efficiency and improve overall shareholders’ value.
FBN Holdings is a leading diversified holding company listed on the Nigerian Stock Exchange. It 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.