Financial Sector: FirstBank Gets N25bn Capital Boost

Group Managing Director, FBN Holdings Plc., UK Eke

The capital base of one of Nigeria’s leading commercial lenders, First Bank of Nigeria Ltd (FirstBank), has received a boost following N25billion support from FBN Holdings Plc.

The Chief Financial Officer of FBN Holdings, Wale Ariyibi, disclosed, at a virtual forum, that the N25 billion is being invested in the Bank as equity capital.

“ The capital injection has cleared all regulatory approvals, … the N25 billion 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 FBNHoldings’ own funds.”Ariyibi said.

Chief Financial Officer of FBN Holdings, Wale Ariyibi

For his part, the Group Managing Director of FBN Holdings Plc., UK Eke, said the capital addition to FirstBanbk is in line with the Group’s mandate of delivering greater value to shareholders and strengthening the resolve to consolidate its leadership in the banking sector.

Speaking further on the half year financial performance of the Group, Eke said it delivered a very robust financial performance which demonstrates the resilience of the Holdings Business and the successful execution of its strategy.

“The progress made in our non-interest income was driven by good treasury management activities benefiting from the increased volatility as well as increasing market share in the e-banking segment,” He noted.

Financial records show that the Groups  gross earnings was up 5.8 per cent year-on-year as profit after tax for the period also went up 56.3 per cent on the back of strong growth in non-interest income.

Comment here