The Group Chief Executive Officer of the FCMB Group, Ladi Balogun, has said that the holdco’s N160bn public offer would support the building of a stronger financial institution.
Balogun said this at the recently held ‘Facts Behind the Offer’ presentation at the Nigerian Exchange Limited, where he emphasised that the offer marked a critical phase in the group’s recapitalisation programme.
The PUNCH reports that FCMB Group Plc raised N147.5bn in its first public offer, which recorded 33 per cent oversubscription. The offer, which received the necessary approvals from the Central Bank of Nigeria and the Securities and Exchange Commission, attracted 42,800 investors, 92 per cent of whom subscribed through digital channels such as the bank’s mobile app.
The fresh offer is designed to strengthen its group’s capital base, retain its international banking licence, and enhance shareholder value in line with the Central Bank of Nigeria’s new N500bn capital requirement for international banks.
Speaking at the event, Balogun traced the Group’s history with NGX, highlighting how the exchange has facilitated approximately $863m in capital raising since the bank’s inception, with recent rounds heavily supported by domestic investors. This confidence from local market participants is especially vital for economic stability and long-term sector growth.
In FCMB’s H1 2025 financial results, Balogun disclosed a 23 per cent profit before tax increase and a 20.6 per cent return on equity.
He explained that “the cost of funds remains high due to the 50 per cent cash reserve requirement, meaning half of deposits earn zero interest. Raising equity helps repay expensive deposits, effectively creating higher yields on that capital. Following FCMB’s 2024 capital raise, the bank’s net interest margin rose 9.1 per cent, and return on equity reached the 20 per cent range by mid-year. We expect a similar outcome after the new capital raise closes in November 2025, with funds deployed by Q1 2026 to further reduce fixed deposits.”
