FCMB capital raise 2025 launched to meet CBN’s ₦500bn minimum capital for international banks, strengthening the bank’s licence and growth prospects

FCMB capital raise 2025 has officially commenced, with First City Monument Bank Group Plc launching a ₦160 billion public offer aimed at bolstering its capital base.

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This strategic move will enable its banking subsidiary, First City Monument Bank Limited, to meet the Central Bank of Nigeria’s (CBN) new recapitalisation policy and retain its international banking licence.

The offer comprises 16 billion ordinary shares priced at ₦10 each, running until 6 November 2025. Proceeds will contribute towards satisfying the CBN’s ₦500 billion minimum capital requirement for international banks, a key component of the regulator’s sector-wide recapitalisation drive.

This latest capital raise represents the second phase of FCMB’s three-stage capital plan, following the successful ₦147.5 billion share sale in 2024—the group’s first equity offering in 16 years.

That round was oversubscribed by 33 per cent, drawing 42,800 investors, 92 per cent of whom subscribed digitally.

Market watchers expect similarly strong investor interest this year, buoyed by FCMB’s solid financial performance and improving sentiment in the Nigerian banking sector.

Over the past three years, FCMB Group has demonstrated impressive growth, with group profit before tax (PBT) rising at a compound annual growth rate (CAGR) of 72 per cent from 2022 to 2025. This growth reflects improved operational efficiency and diversification of income streams.

Non-bank subsidiaries have also delivered robust results, recording a 61 per cent PBT CAGR. Credit Direct Finance Company Limited, Nigeria’s largest non-bank lender, and FCMB Capital Markets Limited—top ranked in the FMDQ fixed income league for bond listings and commercial paper issuances in H1 2025—have been key contributors.

Digital transformation remains a major growth driver. FCMB’s digital revenues have increased by over 58 per cent annually since 2022 and now account for 13.9 per cent of total gross earnings.

As of June 2025, digital lending formed 9 per cent of the total loan portfolio, highlighting the bank’s shift towards technology-led services.

Analysts regard FCMB stock as offering “a rare blend of deep value and high growth,” pointing to its estimated 2025 price-to-book ratio of less than 0.6x, an attractive valuation compared to peers in the sector.

Following this capital raise, FCMB plans to complete the sale of minority stakes in two non-bank subsidiaries, with proceeds injected into the banking subsidiary to further strengthen qualifying core capital.

Also read: FCMB increases issued shares to strengthen equity base

This combined effort is expected to raise FCMB’s total capital above the ₦500 billion threshold, securing its international banking licence well ahead of the CBN’s March 2026 deadline, and marking the conclusion of its recapitalisation programme.

Source: Read more at iretura.com