FBN Holdings Plc has injected N25 billion into First Bank Nigeria after it sold its life insurance company. This is to boost its capital after restructuring its loan book, the FBN said on Monday.
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, analysts say.
Chief Executive Officer, UrumKalu 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.