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FCMB Group, a financial services holding company led by Nigerian banking executive Ladi Balogun, has secured shareholder approval to raise up to N400 billion ($274 million), a move that clears a major hurdle as the Nigerian financial services holding company works to retain its international banking license and comply with new regulatory capital requirements.
The approval was granted at an Extraordinary General Meeting (EGM), where shareholders endorsed an expanded capital plan that management says will place the group well ahead of the Central Bank of Nigeria’s March 2026 recapitalization deadline. For FCMB, this offers both regulatory breathing room and a vote of confidence after a year of strong earnings growth.
FCMB funds growth, tech, offshore expansion
In a filing with the Nigerian Exchange, the group said its banking subsidiary is already on course to meet the higher capital threshold. FCMB noted that it has completed a public offer and expects to close the sale of a minority stake in one of its units before the end of December.
“Subject to capital verification by the CBN, shareholder approval and the required regulatory consents, we are positioned to deliver the N500 billion capital target ahead of the March 2026 deadline for FCMB Limited,” the company said in the filing.
Speaking at the meeting, Group CEO Ladi Balogun thanked shareholders for their backing and said the additional funds would be used carefully, with a focus on balance sheet strength and long-term returns. He added that the capital will help improve capital adequacy, lower reliance on expensive deposits, and support investments in staff, technology and its offshore operations.
Strong returns expected for shareholders
Balogun also outlined expectations for shareholder returns, saying the group expects earnings per share to rise by more than 50 percent on average over the next two years. He added that a stronger capital position should support higher dividend payments, with the capital adequacy ratio projected to remain above 20 percent.
Shareholders also approved the acceptance of oversubscription from the group’s 2025 public offer, subject to limits set by the Securities and Exchange Commission and other regulatory approvals. FCMB said the oversubscription reflects strong investor demand for its shares.
As part of the resolution, FCMB’s issued share capital will increase from N30 billion through the creation of additional ordinary shares required to complete the capital raise. The new shares will rank equally with existing shares.
FCMB posts strong earnings, recapitalization on track
Founded in 1982 by Otunba Subomi Balogun, FCMB has grown into one of Nigeria’s leading financial groups, serving retail, commercial and institutional clients. Under Ladi Balogun, the bank has expanded its income base and posted solid results in a high-interest-rate environment.
For the nine months ended Sept. 30, FCMB reported gross earnings of N828.1 billion ($570 million), up 40.9 percent from a year earlier. Interest income climbed 64.7 percent, offsetting a decline in non-interest income caused by lower currency revaluation gains. Profit after tax rose 52 percent to N125.45 billion ($86.2 million), lifting return on average equity to 22.4 percent.
Total assets stood at N7.23 trillion ($4.97 billion), while assets under management rose to N1.59 trillion ($1.09 billion). Retained earnings increased to N291.9 billion ($200.6 million). With capital verification underway and regulatory approvals pending, FCMB says it remains on track to complete its recapitalization well before the 2026 deadline, positioning the group for growth.
