FCMB’s N144.6bn Question: Will Capital Raise Pay Off in 2025?

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The FCMB Group has disclosed that the N144.6bn additional funds raised through its public offer had a limited impact on its earnings for the 2024 financial performance. The group’s audited accounts and earnings report for the period, filed with the Nigerian Exchange Limited, revealed a modest 7.1 per cent increase in profit before tax to N111.9bn, while profit after tax declined to N73.34bn from N90.02bn in 2023.

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FCMB stated, “The capital raised in FY 2024 had a limited immediate impact on earnings due to the timing of regulatory approvals (completed in December 2024); however, this will be a key driver of profitability in FY 2025.” The group outlined three strategic initiatives to support earnings growth: optimising net interest margins through a stronger capital position, expanding digitally enabled payments and collections solutions, and deepening its presence in premium retail and institutional banking segments

In line with the Central Bank of Nigeria’s recapitalisation directive, FCMB successfully completed the first phase of its capital raising programme, raising N144.6bn through a public offer. This led to an increase in issued shares from 19.8 billion in 2023 to 39.6 billion in 2024. The group revealed that subsequent phases of its capital programme aim to ensure that First City Monument Bank Limited meets the minimum capital requirement to retain its international banking licence.

The capital injection into the banking subsidiary has enabled First City Monument Bank Limited to secure its national banking licence and raise its capital adequacy ratio to 18 per cent, creating necessary buffers to support asset creation in select segments. FCMB recorded a gross revenue of N794.4bn for the period ending December 2024, a 53.9 per cent growth from N516.4bn in the prior year.

The group’s earnings continued to be diversified, with non-bank subsidiaries accounting for over 30 per cent of profits. The contributions by other divisions were as follows: Banking Group: 69.5 per cent, Consumer Finance: 11.0 per cent, Investment Management: 5.8 per cent, and Investment Banking: 1.6 per cent. The growth in gross earnings was driven by a 75.2 per cent growth in interest income and an 8.7 per cent growth in non-interest income

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