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Nigeria's FBN Holdings injects $66 mln from insurance unit sale into First Bank

Published 03/08/2020, 13:53
Updated 03/08/2020, 13:54
© Reuters.

ABUJA, Aug 3 (Reuters) - Nigeria's FBN Holdings Plc
FBNH.LG said on Monday it has sold its life insurance company
and invested the proceeds of 25 billion naira ($66 million) as
equity into its lending business to boost the bank's capital
Nigeria's banks are expected to take a big hit to revenues
and face rising borrowing costs this year as central bank
measures to support the naira currency squeeze lenders already
hit by fallout from the coronavirus and the oil price shock,
analysts say. FBN Holdings Chief Executive Officer Urum Kalu Eke said the
group wanted to focus on improving shareholder value with the
divestment from its life insurance firm, FBN Insurance, and
boost the capital position of its commercial banking unit, First
Bank to 16.53% as of June. The regulatory minimum is 15% for
local lenders with international licences.
FBN Holdings said on Wednesday pretax profit fell 31.1% in
the first-half to 12.73 billion naira.
In 2010, the central bank directed lenders to either sell
their stakes in subsidiaries involved in activities including
insurance, asset management and investment banking - or adopt a
holding company structure, where those activities are separate
from the holding of retail deposits.

($1 = 381.00 naira)

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