FCMB Group proposes equity capital raise to buoy expansion

By Chukwuma Umeorah

FCMB Group Plc has announced plans to undertake a fresh equity capital raise to strengthen its balance sheet and support its planned regional and international expansion.

The move, approved by shareholders at an Extraordinary General Meeting, will see proceeds from the offer injected into First City Monument Bank Limited, the Group’s flagship banking subsidiary.

According to a statement signed by its Company Secretary, Olufunmi Adedibu, “FCMB hereby notifies NGX Regulation Limited (“NGX Reg”), our esteemed stakeholders, and the investor community that the Board of Directors of FCMB acting pursuant to the approval granted by the shareholders at the Extraordinary General Meeting held on December 19, 2024, has resolved to undertake an Offer for Subscription (‘the Offer”).

The Offer is being undertaken in furtherance of the Company’s strategy to strengthen its capital base in anticipation of its focused regional and international expansion plans. The proceeds of the Offer will be remitted as equity into First City Monument Bank Limited.”

Adedibu added that the offer will be priced at a live market rate with a discount to encourage investor participation. Final details of the issuance will be disclosed once the Securities and Exchange Commission grants approval.”

The planned raise comes as the Group continues to report strong financial performance. In its half-year 2025 results, FCMB posted an after-tax profit of N73.42 billion, representing a 23 per cent increase from the N59.48 billion recorded in the same period of 2024. Gross earnings rose 41 per cent year-on-year to N529.2 billion, driven largely by growth in interest income and higher transaction volumes across its digital and asset management businesses.

Net interest income nearly doubled to N207.4 billion, up from N106.2 billion in the previous year, despite a sharp rise in interest expenses which climbed 54 per cent to N251 billion. Fee and commission income also rose by 31 per cent to N47.4 billion, reflecting increased customer activity.

However, net impairment losses on financial instruments grew to N36.2 billion, from N31.3 billion in the prior year, as the bank took a conservative stance on risk provisioning amid a volatile macroeconomic environment. Operating expenses also rose sharply, with personnel costs up 34 per cent to N48.3 billion and general administrative expenses rising 59 per cent to N57.2 billion.

Despite these cost pressures, profit before tax climbed to N79.1 billion, a 23 per cent increase year-on-year. The Group’s total assets expanded by 5 per cent to N7.40 trillion as of March 2025, compared with N7.05 trillion at the end of 2024. Customer loans and advances also grew modestly to N2.44 trillion, supporting lending activities in key sectors.