FCMB Launches N160bn Offer to Strengthen Capital Base

FCMB Group Plc has launched a fresh N160bn public share offering as part of efforts to strengthen its banking subsidiary, First City Monument Bank, and meet the Central Bank of Nigeria’s (CBN) new minimum capital requirement of N500bn for international banks.

In a statement released on Sunday, the company announced that the offer—comprising 16bn ordinary shares at N10 per share—will remain open until November 6, 2025.

This new phase follows FCMB Group’s earlier fundraising round, which generated N147.5bn and recorded a 33 per cent oversubscription. The previous offer, approved by both the CBN and the Securities and Exchange Commission, attracted 42,800 investors, with 92 per cent subscribing digitally through the bank’s mobile app. The exercise also brought in more than 39,000 new investors, demonstrating growing confidence in the group’s performance and digital innovation strategy.

Market analysts anticipate that the positive investor sentiment from the first phase will carry over into this second stage of the group’s three-step recapitalisation programme.

The announcement coincides with FCMB Group’s strong financial performance. The firm reported a profit before tax of N79.3bn, marking a 23 per cent year-on-year increase driven by improved net interest income and asset yields.

Gross revenue rose by 41.3 per cent to N529.2bn in the first half of 2025, compared to N374.5bn in the same period of 2024. The growth was mainly supported by a 70.3 per cent increase in interest income. However, non-interest income fell by 35.1 per cent, largely due to an N36.6bn drop in currency revaluation gains from the previous year.

FCMB also noted that its digital expansion remains a key growth driver. Digital revenues have grown by more than 58 per cent annually since 2022 and now account for 13.9 per cent of total earnings. As of June 2025, digital lending made up nine per cent of the bank’s loan portfolio.

The group said proceeds from the ongoing share sale, alongside other strategic measures, will help it achieve the CBN’s capital target. It also plans to conclude the sale of minority stakes in two subsidiaries, with the proceeds expected to be injected into the bank.

“Upon completion of this exercise, the group’s qualifying core capital will exceed N500bn, successfully concluding its recapitalisation programme,” the statement added.