FCMB to raise additional N150bn in Q3 2024
Business
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.
NAN reports that 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 (NAN)
A.
-May 25, 2024 @ 18:43 GMT|
Related Posts
Arab Coordination Group pledges US$10bn by 2030 to combat desertification and land degradation
THE Arab Coordination Group (ACG), a strategic alliance of ten leading development finance institutions, announced today a landmark commitment of...
Read MoreAfDB, Bank of Africa SA sign EUR 50m risk-sharing agreement to support development of SMEs and boost African trade
THE African Development Bank and Bank of Africa SA have signed a risk-sharing agreement of EUR 50 million to strengthen private-sector financing...
Read MoreSACE, AfDB Group to work together under the “Mattei Plan”
SACE, the Italian insurance-financial group specializing in supporting businesses and the national economic system under the Ministry of Economy and...
Read MoreMost Read
Subscribe to Our Newsletter
Keep abreast of news and other developments from our website.