FBN Holdings injects N25 bln new capital into First Bank, boosts CAR to 16.53%
FBN Holdings has injected fresh N25 billion equity capital into First Bank Nigeria Limited in a bid to strengthen its operations, according to a regulatory filing by the country’s oldest commercial lender’s holding company.
The company said in a filing with the Nigerian Stock Exchange (NSE) that the capital injections was part of the proceeds of the sales of its insurance subsidiary recently.
The company had recently divested its holdings in the FBN Insurance Limited to the South African company that hitherto held a minority stake in the insurance business.
With the injection of the capital, FBN said the capital adequacy ratio of the First Bank has increased to 16.53 percent.
The holding company had sold its stake in the FBN Insurance Limited to South Africa’s Sanlam Emerging Market to boost the capital position of its commercial banking unit.
“The divestment is in line with the Group’s medium to long term strategic objectives. The divestment has unlocked significant value embedded int eh former subsidiary which is being leveraged to strengthen the core banking business or which the Group is renowned,” FBN chief financial officer Oyewale Ariyibi said.
With the fresh injection of capital, First Bank now boosts of 16.53 percent CAR as of June compared with 15.5 percent a year ago, which was barely above the regulatory minimum of 15 percent.