FCMB Group Plc says it has sought shareholders’ approval to raise additional capital of N150 billion by the third quarter of the year, following regulatory endorsement.
Mr Ladi Balogun, the Group Chief Executive Officer of FCMB,
disclosed this in an interview with the News Agency of Nigeria (NAN) on the
sidelines of the bank’s 11th AGM in Lagos.
Balogun said that the bank aimed to boost its capital base
to N500 billion in alignment with the Central Bank of Nigeria’s (CBN)
recapitalisation directive for 2025.
The Central Bank of Nigeria (CBN) on March 29 directed
commercial banks in the country with international authorisation to shore up
their capital base to N500 billion and national banks to N200 billion.
Similarly, non-interest banks with national and regional
authorisation will increase their capital to N20bn and N10 billion
respectively.
The recapitalisation exercise expected to commence from
April 1 through March 31, 2026, is to help the country to attain its one
trillion-dollar economy target.
According to Balogun, the company has retained 80 per cent
of its profits to support its growth and expansion initiatives.
“We are proceeding to raise capital, initially up to N150
billion, to substantially surpass the national license requirement. We aim to
conclude this by the end of the third quarter and proceed with subsequent
phases,” Balogun said.
He outlined the phases, stating, “phase one is securing the
national license, phase two involves consolidating the bank franchise.
“Then, phase three, starting late next year, entails closing
the gap between phase two and three to achieve our mandate.”
Mr Oladipupo Jadesimi, Chairman of the Board of Directors,
FCMB Group, said that the group’s resolution to pay a final dividend of 50 kobo
per share, amounting to N9.9 billion, representing a 100 per cent increase
compared to 2022.
Jadesimi noted that the group recorded a profit after tax of
N93 billion for the year ended Dec. 31, 2023, with earnings per share of N4.70,
representing a 201 per cent increase from 2022.
The board reaffirmed its commitment to delivering
sustainable returns to shareholders, aiming to optimise long-term value.
“This commitment is grounded on the deliberate consideration
of facilitating sustainable business growth and capital requirements, with the
overarching goal of optimising long-term value for our shareholders,” he said.
Commenting on the recapitalisation, Mr Chibuzor Eke, General
Secretary of the Independent Shareholders Association of Nigeria, expressed
confidence that FCMB’s proactive approach would lead to oversubscription for
its capital raise.
Mr Tunde Badmus, another shareholder, expressed satisfaction
with the dividends declared, acknowledging them as a means of preserving the
legacies of FCMB’s late founder.
Badmus appealed to the CBN to allow banks to tap into a
percentage of their reserves to meet the recapitalisation requirements.