FCMB’s ₦160bn Offer to Bolster Capital Base, Strengthen Resilience – CEO Ladi Balogun
First City Monument Bank (FCMB) Group has reaffirmed its commitment to building a more resilient financial institution through its ongoing ₦160 billion public offer. Group Chief Executive Officer, Ladi Balogun, said the fresh capital raise marks a pivotal phase in the company’s recapitalisation plan aimed at sustaining growth and meeting the Central Bank of Nigeria’s new ₦500 billion minimum capital requirement for international banks.
Speaking at the ‘Facts Behind the Offer’ presentation held at the Nigerian Exchange Limited (NGX), Balogun described the initiative as a move to strengthen FCMB’s capital base, retain its international banking licence, and enhance shareholder value. The offer follows a successful ₦147.5 billion public issuance earlier this year, which was 33 per cent oversubscribed and attracted over 42,800 investors, 92 per cent of whom subscribed through digital channels like the FCMB mobile app.
Balogun highlighted the group’s long-standing partnership with the NGX, revealing that the exchange has helped FCMB raise about $863 million since inception — with growing support from domestic investors. He noted that this strong local investor confidence is critical to Nigeria’s economic stability and long-term sectoral growth. The bank’s H1 2025 results also reflected strong performance, showing a 23 per cent rise in profit before tax and a 20.6 per cent return on equity.
Explaining the rationale behind the capital raise, the CEO said that the high cost of funds — driven by the 50 per cent cash reserve requirement — limits liquidity. Raising new equity, he explained, allows the bank to reduce expensive deposits and improve yields. “After our 2024 capital raise, net interest margin rose to 9.1 per cent, and return on equity reached 20 per cent. We expect similar improvements when this offer closes in November 2025,” Balogun said, adding that the funds would be fully deployed by the first quarter of 2026.
The Chief Executive of the NGX, Jude Chiemeka, praised FCMB’s transparency and proactive engagement with investors, noting that the financial sector contributes over 75 per cent of daily trading and ₦2.2 trillion in taxes over the last four years. He also disclosed that the exchange raised ₦4.6 trillion across asset classes in the first half of 2025, emphasizing sustainability efforts such as green and social bond initiatives. With FCMB’s stock up 395 per cent since 2020, Balogun urged shareholders to maintain or increase their stakes, signalling a strong and confident outlook for the Nigerian banking industry.
source: punch