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The Group Chief Executive Officer of FCMB Group Plc, Mr. Ladi Balogun, has said that the company’s ongoing N160 billion public offer will help strengthen its capital base and support the creation of a more resilient financial institution. Balogun made this known during the ‘Facts Behind the Offer’ presentation held recently at the Nigerian Exchange Limited (NGX) in Lagos. He described the new offer as an important step in the group’s recapitalisation journey, aligning with the Central Bank of Nigeria’s (CBN) new capital requirement of N500 billion for international banks. According to the report, FCMB Group earlier raised N147.5 billion in its first public offer, which recorded a 33 per cent oversubscription. The exercise, approved by both the CBN and the Securities and Exchange Commission (SEC), attracted about 42,800 investors. Interestingly, 92 per cent of the investors subscribed digitally through FCMB’s mobile banking app, highlighting the growing role of technology in Nigeria’s capital market participation. Balogun explained that the fresh N160 billion offer would help FCMB retain its international banking licence, improve shareholder value, and create a stronger balance sheet capable of supporting future growth. He also reflected on the Group’s longstanding partnership with the NGX, noting that the bank had raised approximately $863 million through the exchange since inception. He said, “Our history with the NGX is one of consistent progress and innovation. The local market has been instrumental in helping us access capital, with recent rounds largely supported by domestic investors. This level of confidence from Nigerian investors shows a deepening trust in the nation’s financial system and its stability.” FCMB’s latest financial report for the first half of 2025 shows strong performance. The Group recorded a 23 per cent increase in profit before tax and achieved a 20.6 per cent return on equity. Balogun explained that the improved results were driven by prudent cost management, balance sheet growth, and strategic investments in technology and customer service. He noted that “the cost of funds remains high due to the 50 per cent cash reserve requirement imposed by the Central Bank, meaning half of all deposits earn zero interest. By raising equity, we can repay expensive deposits and improve our overall yield. After our 2024 capital raise, FCMB’s net interest margin increased to 9.1 per cent, and return on equity rose to the 20 per cent range. We expect similar outcomes after this new capital raise, which will close in November 2025, with deployment of funds by the first quarter of 2026.” Balogun also spoke about Nigeria’s broader economic outlook, stressing that sustained growth is key to reducing poverty. “Nigeria needs to grow its GDP by about seven per cent annually to achieve meaningful poverty reduction. The Central Bank’s ongoing reforms are essential to this process,” he added. He encouraged shareholders and new investors to take advantage of the public offer, noting that it presents an opportunity to strengthen their stake in one of Nigeria’s leading financial groups. “We urge our shareholders to maintain or increase their investments to avoid dilution and to position themselves for the long-term growth of the institution,” he said. Welcoming participants to the event, the Chief Executive Officer of the Nigerian Exchange Limited, Mr. Jude Chiemeka, praised FCMB Group for its transparent and proactive approach to investor relations. “We commend FCMB for its engagement with the market through this ‘Facts Behind the Offer’ session. The financial sector continues to play a vital role in Nigeria’s economy, accounting for over 75 per cent of daily trading on the NGX and contributing about N2.2 trillion in taxes over the past four years,” Chiemeka said. He also highlighted the broader achievements of the NGX, noting that about N4.6 trillion was raised across different asset classes in the first half of 2025. Chiemeka added that the exchange had been promoting sustainable financing through the issuance of green and social bonds in partnership with the International Finance Corporation (IFC). He encouraged FCMB to continue collaborating with the NGX’s X-Academy to enhance corporate governance and investor education, stressing that such initiatives are key to developing Nigeria’s capital market. Since 2020, FCMB Group’s stock has grown impressively, appreciating by about 395 per cent—equivalent to an average compound annual growth rate of 70 per cent. This performance reflects investor confidence in the Group’s strategy, management, and long-term value creation. As FCMB moves forward with its new capital raising plan, analysts say the bank’s strong market presence, focus on innovation, and commitment to sustainable growth position it as one of Nigeria’s most promising financial institutions in the coming years.
