FCMB has proposed equity capital raise as the bank races to meet the March 2026 recapitalisation deadline set by the Central Bank of Nigeria (CBN).
The bank announced in a letter to the Nigerian Exchange Group on August 20 that it was “acting pursuant to the approval granted by the shareholders at the Extraordinary General Meeting held on December 19, 2024,” and had resolved to undertake an offer for subscription.
The bank did not mention how much it plans to raise but it noted that the offer is being undertaken in furtherance of its strategy to strengthen its capital base in anticipation of focused regional and international expansion plans.
“The proceeds of the Offer will be remitted as equity into First City Monument Bank Limited. The Board is keen to commence the Offer based on a live market price while ensuring that the Offer price reflects an appropriate discount. Details of the Offer will be disclosed upon the receipt of the Securities and Exchange Commission’s (“SEC”) approval.”
CBN recapitalisation deadline
In March 2024, the CBN directed banks to meet certain minimum paid-up capital requirements by March 31, 2026. Recapitalisation efforts have accelerated, with several banks meeting their requirements..
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The CBN raised the minimum capital base for commercial banks holding national authorisation to N200 billion, and those with regional authorisation to N50 billion.
Banks with international authorisation must raise N500 billion as the minimum capital to retain their licenses by the end of recapitalisation exercise.
Sixteen banks raised about N1.7 trillion in 2024, generating an additional N800 billion in the first seven months of 2025. As of July 31, 2025, 8 banks had already met the new capital requirements. So far, Access Holdings Plc, Wema Bank, Zenith Bank, Lotus Bank, Jaiz Bank, Providus Bank, Stanbic IBTC, and Greenwich Merchant Bank have met their capital requirements.
Agusto & Co. said Nigeria’s banking industry’s total assets and contingents could hit N242.3 trillion ($151.4 billion at N1,600/$) by December 31, 2025. The industry saw a 44.9 per cent year-on-year expansion to N186.6 trillion ($121.5 billion at N1,536/$) as of 31 December 2024, according to Agusto & Co.’s 2025 Nigerian Banking industry report.
FCMB feats
FCMB’s reported a gross revenue of N529.2 billion for the first half (H1) of 2025, representing a 41.3 percent growth from N374.5 billion generated in the same period prior year, driven by a 70.3 percent growth in interest income. Non-interest income declined by 35.1 percent, driven by a N36.6 billion year-on-year decline in currency revaluation gains.
Its net interest income grew by 95.3 percent from N106.2 billion in the prior year to N207.4 billion at the end of June 2025. Net interest income is the difference between interest revenue and interest expenditure. For instance, banks earn interest on loans, bonds, mortgages and other investments but pay interest on borrowed funds and to depositors’ fixed deposits and savings accounts.
The yield on earning assets improved to 20.2 percent, resulting in growth in net interest margin to 9.1 percent for the H1 of 2025, from 6.3 percent in H1 of 2024.
Its profit jumped 23.43 percent to N73.422 billion, from N59.484 billion reported in the corrresponding period of 2024. It raised its FGN bonds trading income by 84 percent to N8.729 billion, from N4.74 billion reported in the corresponding period of 2024.
“Loans and advances grew by 1.1% to N2.38 trillion at the end of June 2025 from N2.36 trillion at the end of December 2024, impacted by currency revaluation, loan write-offs and concentrated paydowns. Total assets increased by 6.9 percent to N7.54 trillion at the end of June 2025 from ₦7.05 trillion at the end of December 2024,” the bank noted in its recent earnings release.
