The Group Managing Director, FBN Holdings Plc, UK Eke has said the injection of N25b capital into the group commercial banking arm is in line with its mandate of delivering value to shareholders, as well as strengthening its position in the banking sector.
At the Q2 investor and analyst conference call, he explained that FBN Holdings injected the money said amount into First Bank of Nigeria Ltd., as equity capital, noting that the capital injection has cleared all regulatory approvals.
He said: “However, this is not the total amount received as consideration for selling our 65 per cent holdings (investment) in FBN Insurance. The N25b is made up of two parts: net proceeds of sale of stake in FBNI, which is gross proceeds less professional fees, charges and other cost of sale and FBN Holdings’ own funds.”
According to him, with the injection, FirstBank leveraged this Tier 1 Capital with its existing Tier 2 capital to increase its Capital Adequacy Ratio (CAR) from 15.3 per cent as at Q1 2020 to 16.53 per cent as at Q2 2020.
Eke said the group delivered a very robust financial performance, which demonstrates the resilience of the group and the successful execution of its strategy. According to him, the bank achieved earnings growth, strengthened its balance sheet; maintained a strong liquidity profile; consolidated leadership in e-banking, while also keeping their costs under control amidst a very challenging period for the sector and the economy as a whole.