This pushed its capital base beyond the N500 billion threshold required for banks with international licences.

Released on March 9, 2026, the disclosure confirmed that the financial services holding company has met the minimum capital requirement set by the Central Bank of Nigeria (CBN) ahead of the March 31, 2026 deadline for the banking sector’s recapitalisation exercise.

The filing further revealed that the capital build-up was achieved through a mix of public offerings, debt-to-equity conversions and the sale of minority stakes in selected non-core subsidiaries.

The process brings to a close a 24-month capital raising effort that began after the CBN announced new minimum capital requirements for banks in early 2024.

A phased capital raising strategy

Rather than relying on a single fundraising exercise, FCMB adopted a multi-stage strategy led by Ladi Balogun, the group chief executive officer, aimed at raising funds while limiting dilution for existing shareholders.

The process began in May 2024 when shareholders approved plans to raise an initial N150 billion at the company’s Annual General Meeting.

By September 2024, the group had completed its first public offer, which was oversubscribed by about 33 percent and raised approximately N144.6 billion from investors.

As the recapitalisation plan progressed, the board expanded the target. In December 2024, approval was secured to increase the capital raise limit to N340 billion, creating an additional buffer for the bank’s international licence requirements.

A further increase came in September 2025 when a $15.5 million mandatory convertible loan, estimated at about N23.1 billion, was converted into equity. This strengthened the bank’s Tier-1 capital without requiring another market offer.

The final phase started in October 2025 with a second public offer involving 16 billion shares priced at N10 each. In early 2026, the group also sold minority stakes in some non-core subsidiaries, including its pensions business, to provide additional capital support for the banking arm.

With the latest disclosure, the group confirmed that its capital base has now crossed the N500 billion mark required for banks with international authorisation.

How FCMB approached recapitalisation

Nigeria’s banking recapitalisation window between 2024 and 2026 has seen lenders adopt different strategies to meet the new thresholds.

Major tier-one lenders such as Zenith Bank Plc and Guaranty Trust Holding Company Plc largely relied on rights issues, supported by relatively strong share prices.

In contrast, FCMB adopted a hybrid approach that combined equity offers, debt conversion and asset sales. Analysts say this approach helped the group manage shareholder dilution while still raising the capital required within the regulatory timeline.

Across the industry, the exercise has created different paths for banks. Some institutions have opted for lower licence categories, while others are exploring mergers or fresh capital injections to remain competitive.

What it means for investors

With the capital raise now completed, attention is expected to change direction to how FCMB deploys the new funds. The group has indicated that a significant portion will support technology upgrades, digital banking expansion and growth in corporate lending.

Market analysts say the removal of recapitalisation uncertainty could improve investor sentiment toward the bank’s shares, particularly as the strengthened capital base is expected to push its Capital Adequacy Ratio comfortably above regulatory minimum levels.

FCMB has also hinted that it may return to its progressive dividend policy after the two-year capital build-up period, a development that could be welcomed by shareholders who supported the recapitalisation process.

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The offer marks a critical phase in the Group’s recapitalisation programme designed to strengthen its capital base, retain its international banking license, and enhance shareholder value in line with the Central Bank of Nigeria’s new ₦500 billion capital requirement for international banks.

Ladi Balogun, the group CEO of FCMB, presented the offer details during the “Facts Behind the Offer” session, showcasing the importance of the capital raise towards building a stronger and more resilient financial institution.

Balogun traced the Group’s rich history with NGX, highlighting how the exchange has facilitated approximately $863 million in capital raising since the bank’s inception, with recent rounds heavily supported by domestic investors.

This confidence from local market participants is especially vital for economic stability and long-term sector growth.

Setting the capital raise against Nigeria’s improving macroeconomic backdrop, Balogun pointed to key indicators such as foreign reserves reaching a 10-year high, inflation dropping to near 20%, and the naira’s appreciation as signs of stability that buoy investor optimism.

He projected that lower interest rates and Nigeria’s potential return to emerging market indices would drive increased foreign portfolio inflows and higher valuations, particularly in the banking sector.

Jude Chiemeka, Nigerian Exchange Group CEO, in his welcome remarks, applauded FCMB’s proactive engagement with investors through this transparent communication platform.

He said,

“We applaud FCMB’s proactive engagement with investors. The financial sector is critical to our economy, accounting for over 75% of daily trading on the NGX and contributing significantly, including ₦2.2 trillion in taxes over the last four years.”

Chiemeka highlighted the broader achievements of the exchange, including ₦4.6 trillion raised across various asset classes in H1 2025 and sustainability efforts such as green and social bonds issuance in partnership with the International Finance Corporation.

He urged FCMB to deepen collaboration with NGX’s X-Academy on corporate governance and investor education, reinforcing the commitment to market development.

Speaking on FCMB’s strong H1 2025 Financial results, Balogun spoke to the restructuring, which showed a 23% profit before tax increase and a 20.6% return on equity.

He explained that “the cost of funds remains high due to the 50% cash reserve requirement, meaning half of deposits earn zero interest. Raising equity helps repay expensive deposits, effectively creating higher yields on that capital.”

He added that, “following FCMB’s 2024 capital raise, the bank’s net interest margin rose to 9.1% and return on equity reached the 20% range by mid-year. We expect a similar outcome after the new capital raise closes in November 2025, with funds deployed by Q1 2026 to further reduce fixed deposits.”

The FCMB Group CEO also reiterated Nigeria’s economic milestone, whereby GDP growth has finally outpaced population growth, a crucial shift for poverty reduction.

“Sustained poverty reduction requires annual GDP growth of about 7%. The Central Bank of Nigeria is driving reforms that have supported this improvement,” he stated.

Balogun highlighted monetary reforms like the floating of the exchange rate and clearing a $7 billion FX backlog, which have improved foreign reserves and investor confidence.

Encouraging shareholder participation, he urged investors, “to maintain or increase their investments to avoid dilution,” signalling a bullish outlook for Nigerian banks under these favorable conditions.

The strong performance of FCMB’s stock, which has surged by 395% since 2020, translating into a 70% compound annual growth rate, combined with the bank’s undervalued price-to-book ratio, signals significant upside potential for investors looking to capitalize on Nigeria’s evolving economic landscape.

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Gross revenue grew 41.1% year-on-year to ₦252.7 billion, surpassing its Q1 forecast of ₦226.9 billion, driven by a 58% increase in net interest income.

The Group recorded a 5% growth in total assets from ₦7.05 trillion in December 2024 to ₦7.40 trillion as at March 2025. Loans and advances also grew by 3.4% over the same period to ₦2.44 trillion, supporting business and economic activity.

The Banking Group accounted for 81.4% of profits, followed by Consumer Finance, 11.7%, Investment Management, 5.0%, and Investment Banking, 0.7%.

Net interest margins grew to 8.3% from 5.4% in Q4 2024, driven by a 200 basis points drop in the cost of funds and a higher yield on earning assets of 20.2%.

The Group linked the improvement to early benefits of the capital raised in 2024 and an improvement in the low-cost deposit liabilities.

Ladi Balogun, group Chief Executive said that the diversified financial services group will continue to leverage its group structure to drive an ecosystem that will foster inclusive and sustainable growth.

Analysts say FCMB Group’s diversified revenue structure and strengthened capital position provide a positive outlook for the rest of the financial year.

FCMB Group Plc is a financial services holding company listed on the Nigerian Exchange and headquartered in Lagos.

The Group has strategic interests in businesses serving over 14 million customers across five platforms – banking, consumer finance, investment management, investment banking, and financial technology.

Together, these businesses are building an integrated ecosystem that supports inclusive and sustainable growth across Africa, its diaspora, and the United Kingdom.

The post FCMB Group Posts ₦35bn Q1 Profit as Revenue Surpasses Forecast appeared first on Tech | Business | Economy.

The approval, granted during an extraordinary general meeting held both physical and virtual in Lagos, is crucial for its banking subsidiary, First City Monument Bank Limited, to comply with the Central Bank of Nigeria’s international license requirements.

The approved measures include increasing the authorized additional capital raise from N150 billion to N340 billion, which empowers the Group to explore a diverse mix of financial instruments, such as ordinary and preference shares, convertible and non-convertible securities, bonds, and loans.

Shareholders also endorsed the divestment of stakes in one or more subsidiaries, with proceeds earmarked for reinvestment in the banking subsidiary, and the acceptance of surplus funds arising from oversubscription of the public offer launched in July 2024, subject to regulatory approvals.

Additionally, the meeting approved an increase in the company’s issued share capital from N19.8 billion divided in 39.6 billion ordinary shares of 50 kobo each while authorizing the raise of up to $15 million (or its Naira equivalent) via a mandatory convertible loan targeted at select qualified investors.

Ladi Balogun, the group chief executive officer of FCMB Group, said, this is a critical milestone, emphasizing shareholder confidence in FCMB Group’s strategic direction.

FCMB Group reported a 67 per cent growth in nine-month profit before tax to N91.8 billion as at September 40, 2024.

An earlier capital raise in September was oversubscribed, showing investor confidence in the Company’s growth prospects.

Shareholders expressed confidence in the company’s trajectory, applauding its ability to generate robust returns and exceed expectations.

It will be recalled that in July 2024 FCMB Group raised N110.9 billion capital raised via public offer in enhancing its capital base and strategic business expansion growth.

The Group via public offer issued 15.197 billion shares at N7.30 per share, amounting to N110.9 billion on July 29, 2024 and closed on September 4, 2024.

Balogun earlier said that this strategic move is part of the bank’s comprehensive plan to meet the Central Bank of Nigeria’s (CBN) capitalisation requirements, saying that in addition to its public offer, the Group has adopted a three-phased approach to raise up to N397 billion additional capital to drive its diversification plans including incorporating a Technology Holding Company by 2026.

He stated that “the first phase, which aims to generate N150 billion through a public offer of 15.12 billion shares at N7.30 totaling N110.9 billion. Also, a private placement of about $40 million to $50 million which will close by the end of the year and convertible by next year. The public offer will enable us to swiftly meet market demands while ensuring simplicity and speed in execution.”

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The Group has nine subsidiaries divided among three business groups: commercial and retail banking, investment banking, and asset and wealth management.

Key Highlights of the FCMB Group PLC’s financial report:

Customer Base: Expanded by 15.4% YoY from 10.4 million to 12 million customers by September 2023 as we further democratise access to comprehensive financial services.

Customer Deposits: Grew by 39.1% YoY to ₦2.53 trillion by September 2023

Loans and Advances: Grew by 34.3% YoY to ₦1.59 trillion by September 2023, driven by the expansion of lending to critical sectors such as agriculture and increased use of digital channels, artificial intelligence and automation to drive loan distribution, underwriting and fulfilment, respectively.

Operating Expenses: Grew by 29.0% YoY to ₦111.5 billion.

Profit Before Tax (PBT): The Group achieved 108.0% YoY growth to ₦55.1 billion.

Total Assets: Recorded a 32.2% YoY growth, to ₦3.88 trillion by September 2023, showing our financial strength.

Banking Group: Recorded 130.1% YoY growth in Profit before tax (PBT).

Consumer Finance Group: Achieved 32.6% YoY PBT growth.

Investment Management Group and Investment Banking Group: Improved YoY PBT growth of 38.7% and 27.6%, respectively.

Agency Banking Network: Grew our agent network to over 120,000 agents, acquiring over 130,000 customers during the period and expanding our distribution into underserved communities.

Additional Highlights:

The Group completed the issuance of a Series 2 Additional Tier 1 Capital Bond under its ₦300 billion Debt Issuance Programme for its Banking Subsidiary, bringing the total Additional Tier I Capital raised during the year to ₦46.7 billion.

FCMB Group further reported that its consumer finance business, Credit Direct Limited, also completed its maiden Commercial Paper Issuance to diversify the Company’s funding base further.

Leveraging the Group structure, FCMB is building a technology-driven ecosystem to foster inclusive and sustainable growth.

“We are confident that our commitment to scaling and digitising this ecosystem will continue to drive the success of our business and our stakeholders in the future”, the FCMB Group said.

The post FCMB Group Reports 108% YoY Growth in Profit Before Tax in 9 Months of 2023 appeared first on Tech | Business | Economy.

Digital banking initiatives have gained significant traction within FCMB Group, contributing to its overall performance. In the first quarter, digital revenues accounted for 12.0% of gross earnings, equivalent to N10.0 billion.

This substantial growth highlights the Group’s commitment to leveraging digital solutions to enhance customer experiences and drive financial inclusion.

The impact of digitalisation was evident across FCMB Group’s various business lines. In terms of interest income, digital revenues accounted for 8.0% (₦5.2 billion), reflecting customers’ increasing adoption of digital banking services. Furthermore, digital initiatives contributed 6.4% (₦76.3 billion) of the loan book, showcasing the Group’s focus on digital lending solutions.

In addition, digital channels accounted for 7.0% (₦10.0 billion) of the Assets Under Management (AUM) in the Group’s Asset Management business, reflecting the strength of its digital investment platforms.

Commenting on the results, Mr Ladi Balogun, the Group Chief Executive, said: “We continue to leverage our unique group structure to build a technology-driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve. This strategy enables us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances, we believe our growth trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation.”

Remarkably, during the period under review, FCMB Group achieved a significant 50% increase in gross revenue. Gross revenue rose to N87.4 billion, compared to N58.3 billion in the corresponding period of the previous year. This growth was driven by a substantial 41.4% increase in interest income and an impressive 84.2% rise in non-interest income. These results highlight FCMB Group’s ability to generate significant revenue across its diverse business lines.

Furthermore, FCMB Group witnessed a substantial 25.1% year-on-year increase in total assets, reaching an impressive N3.1 trillion at the end of the first quarter of 2023. This growth underscores the Group’s ability to effectively manage and expand its asset base, positioning it for further success in the fast-evolving financial services landscape.

The Group also acquired 500,000 new customers pushing its customer base to 11.4 million. This growth reflects the Group’s commitment to delivering exceptional financial services and its ability to attract and retain a large and loyal customer base.

It also recorded an impressive 78 per cent increase in profit before tax, with N10.7 billion as against N6 billion in the corresponding period of 2022. The banking group, consumer finance, investment management and investment banking segments also recorded notable growth of 108.8 per cent, 6.1 per cent, 47.0 per cent and 18.2 per cent, respectively.

The Group’s Investment Management businesses also achieved notable growth, with a 16.5% year-on-year increase in Assets Under Management (AUM). FCMB Group’s AUM reached an impressive N830 billion by the end of the first quarter of 2023, highlighting the Group’s expertise in managing investments and generating value for its clients.

FCMB Group is listed on the Nigerian Exchange Group (NGX) and serves over 11 million customers across four platforms: banking, consumer finance, investment management, and investment banking.

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Double-digit growth was recorded across all business segments, with the banking group growing by 71.7%, while the consumer finance, investment management, and investment banking segments grew by 25.6%, 45.7%, and 26.7%, respectively.

The Ladi Balogun led company, which proposed a dividend of 25k per share, also delivered impressive environmental, social and governance results in climate action, financial inclusion, food security, community initiatives, customer acquisition, and digital transformation.

It switched 12 additional branches to solar power in 2022, removing 75% of its branch network from grid/diesel generators, and provided micro-loans totalling N13 billion to 120,000 MSMEs.

The agency banking arm extended its partnership to 100,000, acquiring over 211,000 customers.

Working alongside partners, FCMB supported 280,000 smallholder farmers, created over 600,000 jobs, and helped deliver Africa’s first cassava-based Sorbitol Factory.

The Group’s impressive financial results also showed a 35.5% growth in gross revenue to N283 billion from N212 billion the previous year.

It was driven by a 35.5% growth in interest income and a 26.9% growth in non-interest income. Customer confidence remained strong as deposits rose 25.1% to N1.94 trillion in December 2022 from N1.55 trillion the previous year, while loans and advances witnessed a 12.4% surge to N1.20 trillion as against N1.06 trillion in 2021. The Group’s total assets increased by 19.6% from N2.50 trillion to N2.98 trillion in December 2022.

Investment Banking (advisory and primary debt and equity capital markets) transaction value consummated by the Group rose to N857.1 billion in 2022, compared to N582.9 billion in 2021.

This delivered a 47% growth in fees from capital raise and financial advisory services over the period.

The financial service Group’s Assets Under Management (AUM) also sustained its growth trajectory rising to N783.7 billion in 2022, up by 49.0% from N525.7 the prior year.

Net interest income grew 34.2% to N122.0 billion for the first twelve months of 2022, compared to N90.9 billion in 2021.

This was driven by a growth in the yield on earning assets from 11.0% to 12.7%, which increased Net Interest Margin (NIM) from 6.2% to 7.0%.

The overall customer base of FCMB Group grew by 18.4% to 10.9 million, as it acquired an additional 1.7 million customers in the period, including 250,000 customers from Pension Fund Administrator (PFA acquisition), compared to 900,000 in 2021.

This Group’s digital transformation drive witnessed enhanced performance across all business segments. Digital Payments, Wealth, and Lending continued to empower more customers, resulting in a 42.0% growth in digital revenues from N26.1 billion in 2021 to N37.1 billion in 2022. Thus, digital revenues accounted for 13% of gross earnings from the 12% contribution in 2021.

Digital retail lending

In digital retail lending, First City Monument Bank and Credit Direct Limited, subsidiaries of the Group, underwrote and disbursed over 962,000 loans, totalling N42.1 billion, as at December 31, 2022, a growth of 17.1% and 24.9%, respectively, from the prior year.

Through the Bank’s digital SME lending channels, over 21,000 loans, totalling N165.2 billion, were accessed, underwritten, and disbursed, a growth of 1.9% and 43.7%, respectively.

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