🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

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.
FBNH
-

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
ratio.
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)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.