FCMB Group Plc, a leading financial services group, has said that its recent fundraising from the capital market will be directed towards enhancing returns for its shareholders.
With a focus on delivering stronger and more sustainable returns by 2027, the bank has reassured investors that the inflow of new capital will not diminish returns but sustain the momentum of higher returns and valuation that keeps its stock in demand.
The group, on October 2, launched a new public share sale of N160 billion to bolster its banking arm, First City Monument Bank, in response to the Central Bank of Nigeria’s (CBN) fresh N500 billion minimum capital requirement for international banks. By optimising shareholder value and implementing effective risk management strategies, FCMB strives to mitigate exposure to macroeconomic shocks.
In addition to leveraging technology to reduce operating expenses and enhance profit margins, the bank plans to expand its operations across West Africa, where it believes the risks are lower and the returns higher. “There are opportunities in several West African countries.
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Ours is technology. We are doing our research outside Africa. Our trade flows within West Africa creates more trading opportunities,” said Group Chief Executive of FCMB Group, Ladi Balogun,
FCMB reported a return on average equity (ROAE) of 20.60 per cent in the first half of 2025, an increase from 12.80 per cent in December 2024. The previous public offer of N144.55 billion saw strong demand, with a 33 per cent oversubscription, attracting 42,800 investors, 92 per cent of whom utilised digital platforms to participate. This success not only highlights investor confidence in FCMB’s growth potential but also reflects the effectiveness of its digital innovations.
The bank’s commitment to converting assets into profits has led to a favourable portfolio appeal. Earnings per share (EPS) has grown from N0.14 in 2019 to N3.74 projected by year-end 2025. This highlights the company’s strong historical performance and sustained earnings momentum. Similarly, dividend per share grew from N0.14 in 2019 to N0.55 in 2024, representing a 31.4 per cent CAGR. This underscores the group’s consistent track record of rewarding shareholders while retaining sufficient capital to fund future growth. Additionally, between January and September 2025, the lender’s stock price rose by 16 per cent, showcasing significant appreciation. FCMB’s proactive digital strategies contributed to an impressive profit of N79.2 billion in the first half of 2025, a 23.2 per cent rise from N64.21 billion in the first half of 2024. The interest income from loans also saw a substantial increase, up 70.31 per cent to N458.41 billion, compared to N269.16 billion in June 2024.
The group’s diversified operational platforms, cutting across banking, consumer finance, and investment banking, demonstrate robust profit growth as it continues to build a comprehensive ecosystem linking individuals, businesses and markets.
Following the federal government’s vision for a $1 trillion economy by 2030, the CBN has raised the minimum capital requirement for commercial banks with international licenses to N500 billion to fortify the banking sector against macroeconomic challenges.
