FCMB meets CBN capital requirement after completing N500bn recapitalisation

FCMB Group Plc has announced the successful completion of its N500 billion capital raise ahead of the Central Bank of Nigeria’s March 31 recapitalisation deadline.

The development was disclosed in a statement dated March 8, 2026, and signed by the Group Chief Executive, Ladi Balogun.

With this announcement, FCMB joins other Nigerian banks that have concluded their capital raising programmes in compliance with the CBN’s new capital requirements.

What they are saying

The group confirmed that it has received the necessary approvals from key regulatory bodies, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the National Pension Commission (PenCom).

• “FCMB Group Plc announces the successful completion of the capital raise programme undertaken for its banking subsidiary, First City Monument Bank Limited,” the statement said.

The group disclosed that its 2025 Public Offer raised approximately N231.8 billion in gross proceeds.

The company noted that the approvals from regulators marked the completion of the fundraising process required to strengthen the capital base of its banking subsidiary.

Backstory

FCMB Group initially announced plans to raise N340 billion in 2024 to support the recapitalisation of its banking subsidiary. The capital raise target was later increased to N370 billion in 2025 before being further expanded.

• In November 2025, the group increased its capital-raising ceiling to N400 billion.
• The adjustment followed a regulatory circular issued by the CBN requiring banks to strengthen their capital positions.
• FCMB clarified at the time that the increase in the capital ceiling was not intended to initiate a new fundraising round but was meant to ensure compliance with regulatory requirements.

The group also reassured shareholders that the expanded capital base would not dilute shareholder value.

According to FCMB, earnings per share are projected to rise from N1.85 in 2024 to N4.60 by 2026, supported by strong returns on equity despite the enlarged capital base.

The group explained that the proceeds from the public offer and the minority divestment provide adequate capital for its banking subsidiary to meet regulatory requirements.

More insights

The CBN last week disclosed that 30 banks have already met the new minimum capital thresholds introduced under its ongoing banking sector recapitalisation programme.

According to the apex bank, the recapitalisation drive, which began in 2024, is progressing across the industry as financial institutions strengthen their capital bases through various fundraising strategies.

• “As of March 6, 2026, the recapitalisation exercise is progressing steadily. Thirty (30) banks have met the new minimum capital requirements applicable to their respective licence authorisations. In total, thirty-three (33) banks have raised additional capital through rights issues, initial public offerings (IPOs), and private placements as part of the programme.” 

What you should know

FCMB Group’s capital raise comes on the back of strong financial performance in 2025.

• The group reported pre-tax profit of N200.91 billion for the year ended December 31, 2025, representing an 80% increase from N111.9 billion in 2024.
• Gross earnings rose by 41.8% to N1.13 trillion, driven by strong growth in interest income and trading income.
• Profit after tax surged by 141.7% to N176.91 billion, compared with N73.34 billion recorded in the previous year.

The improved financial performance and strengthened capital base position FCMB to take advantage of new opportunities as Nigeria’s banking sector adjusts to the CBN’s recapitalisation requirements. (Nairametrics)