FBN Holdings Plc has injected 25 billion equity capital into its commercial banking subsidiary, First Bank of Nigeria Limited, being 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 per cent (before capitalising year to date profit) as at June 2020.
Chief Financial Officer of FBN Holdings Plc, Oyewale Ariyibi who spoke on the development disclosed; “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.