FBH Holdings Plc (“FBNH” or “the Company), has announced the injection of N25 billion equity capital into its commercial banking subsidiary, First Bank Nigeria Limited.
According to a publication on the Nigeria Stock Exchange, the capital injected represents part of the net proceeds of the company’s divestment from FBN Insurance Limited. With the fresh capital, FBNH stated that “the Capital Adequacy Ratio (CAR) of Firstbank has increased to 16.53% as at June 2020”.
On 2 June 2nd 2020, FBNH announced to the NSE and investing public that the company had completed the sale and transfer of FBNH’s 65% shareholding in FBN Insurance Limited to Sanlam. The effective date of the divestment was June 1st 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 beng leveraged to strengthen the core banking business for which the Group is renowned.”
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The overriding objective of the Group 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 caution, but confident that our business is fundamentally strong to surmount any future challenge towards delivering superior financial performance.”
FBNH reported N49.463 billion Profit for the Half Year (H1) period ended 30 June 2020, up from the N31.641 billion reported in the same period in 2019.
FBNH Holdings is a leading diversified financial services group in Nigeria. FBNH is the parent company of First Bank Nigeria Limited, FBNQuest Merchant Bank Limited, FBNQuest Capital Limited, FBNQuest Trustees Limited and FBN Insurance Brokers Limited.
Written by;
Nnamdi M.
