First Bank of Nigeria has received a huge boost in its capital base, after FBN holdings invested N25 billion proceeds from the sale of its life insurance company in the bank.
This move aims to improve the bank’s capital after restructuring its loan book, the FBN said on Monday.
According to THE NATION, Nigeria’s banks are expected to take a big hit to their revenue and face rising borrowing costs this year as Central Bank of Nigeria’s measures to support the naira currency squeeze lenders already affected by fallout from the coronavirus and the oil price shock.
Chief Executive Officer Urum Kalu Eke said FBN Holdings sold its 65 per cent stake in FBN Insurance to South Africa’s Sanlam Emerging Markets, a minority investor in the business.
First Bank had also restructured 15 per cent of its N1.759 trillion (about $4.6 billion) loan book by the end of the first half, up from six per cent three months previously.
