FCMB Reassures Shareholders of Dividends Amid CBN’s New Banking Restrictions

FCMB Group Plc has moved to allay shareholder concerns following a new directive from the Central Bank of Nigeria (CBN), which mandates banks with loans under regulatory forbearance to suspend dividend payments. In a statement released by its Company Secretary, Funmi Adedibu, FCMB assured investors that its dividend policy for 2025 and the years immediately after remains intact, supported by revenue contributions from its diversified subsidiaries.

The CBN’s new rules, issued by Director of Banking Supervision Olubukola Akinwunmi, are aimed at reinforcing the banking sector’s stability. These regulations restrict dividend distributions, executive bonuses, and offshore investments for banks under forbearance due to significant credit exposures or breaches of Single Obligor Limits. However, FCMB clarified that its banking subsidiary only accounts for 46% of total dividends, with the remainder generated by non-banking entities.

FCMB disclosed that its current exposure under CBN forbearance has declined significantly—from ₦538.8bn in September 2024 to ₦207.6bn as of May 2025. These loans are currently categorized as Stage 2, and the bank has been making provisions over several years. The group expects a temporary increase in Stage 3 loans to 11.5% once the forbearance ends, but forecasts this figure to dip below 10% by year-end due to projected loan book growth.

Additionally, FCMB is working to bring another large loan within regulatory limits by converting a ₦23.1bn convertible loan into equity by September 2025. This move, along with expected retained earnings, will help boost the bank’s capital adequacy, which is projected to remain above the required 15% threshold for international banks, even after exiting the forbearance regime.

According to estimates from Renaissance Capital Africa, FCMB’s forbearance exposure is about 8% of its total loan book—the lowest among the six banks reviewed. With regulatory approvals in progress and a strong non-bank revenue stream, FCMB remains confident in maintaining its dividend commitments despite the tighter regulatory landscape.

Source: Punch