First Bank Plc has successfully recovered the full N456 billion loan lend to Heritage Bank, as part of a bailout loan arrangement during the tenure of former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.
According to a reliable source, the CBN credited First Bank before announcing to the public, the revocation of Heritage Bank’s license.
The CBN, on Monday, cited Heritage Bank’s continued financial distress and lack of recovery prospects, as major factors ultimately leading to its collapse.
Report says, the recovery of the N456 billion concludes a seven-year effort since First Bank supported Heritage Bank in clearing transactions. This repayment will bolster First Bank’s financial position, reflected in FBN Holdings’ first-quarter financial statements, showing a pre-tax profit of N358.8 billion and an impairment provision of N227.4 billion.
Heritage Bank’s challenges began in 2019, prompting CBN intervention to prevent its collapse. Despite regulatory support, the Bank’s financial health deteriorated, leading to the CBN’s decision to revoke its banking license.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has initiated the liquidation process, ensuring that customers who have deposits with Heritage Bank get their fund as soon as possible.
Leave a Reply