FCMB Group Plc has notified investors that its Board of Directors has resolved to undertake an offer for subscription.
FCMB said this decision is pursuant to the approval granted by the shareholders at the Extraordinary General Meeting (EGM) held on December 19, 2024.
The Offer is being undertaken in furtherance of the Company’s strategy to strengthen its capital base in anticipation of its 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 (SEC) approval,” the company said in a recent notice.
In the half-year to June 30, 2025 FCMB Group recorded gross revenue of N529.2 billion, a 41.3 percent growth from N374.5 billion for 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 (YoY) decline in currency revaluation gains.
“Our digital business comprising Payments, Lending and Wealth continued to record strong growth across revenues, transaction volumes and value with digital now contributing 13.9 percent to gross earnings.
“This resulted in a 60 percent Year-on-Year growth in digital revenues from N46 billion as at June 2024 to N73.6 billion for the period ended June 2025,” FCMB Group said.
Net interest income grew by 95.3 percent in H1 2025 from N106.2 billion in the prior year, to N207.4 billion at the end of June 2025. The yield on earning assets improved to 20.2 percent, resulting in a growth in Net Interest Margin to 9.1 percent for 1H 2025 from 6.3 percent as at FY 2024.
Operating expenses grew by 46.1 percent Year-on-Year to N153.2 billion for the period ended June 2025, due to increased personnel costs, regulatory costs, foreign currency linked expenses (example technology and foreign subsidiary expenses) and general inflationary pressures.
Cost-to-income ratio improved to 57 percent for the period ended June 2025 from 59.9 percent recorded for FY 2024. Net impairment loss on financial assets grew by 180 percent quarter-on-quarter (QoQ) to N36.2 billion for the period ended June 2025 “as our Nigerian Banking subsidiary exited the CBN loan forbearance, which resulted in a growth in cost of risk to 2.8 percent from 1.8 percent recorded for FY 2024”.
Overall, PBT and PAT grew by 23 percent year-on-year to N79.1 billion and N73.4 billion respectively. The divisions of the Group reported Year-on-Year PBT growth as follows; Consumer Finance: 54.5 percent,
Banking Group: 41.3 percent, Investment Management: 10 percent, and Investment Banking: -48.9 percent (one-off exceptional gain on divestment in FY 2024).
“The PBT contributions by our divisions were as follows; Banking Group: 82 percent, Consumer Finance: 11.6 percent, Investment Management: 4.8 percent, and Investment Banking: 1.4 percent,” FCMB Group said recently.
