FCMB Group Gets Shareholders’ Approval to Raise N400bn Ahead of 2026 CBN Recapitalisation Deadline
Shareholders of FCMB Group Plc have approved a major capital raise of up to N400 billion, positioning the bank to meet the Central Bank of Nigeria’s (CBN) recapitalisation deadline in March 2026. The approval was granted at a recent Extraordinary General Meeting (EGM), reflecting investor confidence in FCMB’s leadership and its bold growth strategy.
The capital raise is aimed at ensuring FCMB meets the minimum regulatory capital required for banks with an international licence. This will allow the bank to maintain its international banking licence for its subsidiary, First City Monument Bank Limited, in line with CBN requirements. The move is seen as a strategic step to strengthen the bank’s market position and long-term sustainability.
At the EGM, Group CEO Ladi Balogun highlighted the importance of the capital injection, stating that it would improve the bank’s capital adequacy ratio, drive technological investment, expand international operations, and reduce high-cost deposits. Balogun also projected earnings per share (EPS) growth of over 50% on average over the next two years, promising enhanced dividends and shareholder returns.
The meeting also approved the acceptance of oversubscriptions from the 2025 public offer, leveraging strong investor demand. Shareholders agreed to increase the group’s issued share capital from ₦30 billion, creating additional ordinary shares that will rank equally with existing shares. These measures demonstrate robust investor confidence and a commitment to supporting the bank’s expansion plans.
Balogun further assured that the bank’s capital adequacy ratio is expected to exceed 20%, improving its capacity to pay dividends consistently. He emphasized that the combination of shareholder support, regulatory compliance, and strategic investment would ensure that FCMB continues to deliver strong performance and returns in the coming years.
source: dailytrust