FCMB Investors Get ‘Juicy’ 16% Return in 9 Months
With 21% insider shareholders, and 79% free free float, FCMB Group Plc delivered a 16% gain in the first nine months of operation in 2025, reflecting tight price appreciation amidst zero interim dividend payments to shareholders.
This means an investor who purchased N100 million worth of FCMB at the beginning of the year gained N16 million as of Sept close when the bank share price was N10.90.
The capital appreciation fell below its immediate rivals in the tier-2 category. While FMCB delivered 16%, Ecobank boosted its shareholders’ value by 30.4%, Wema Bank (97.8%), Sterling (34.8%), and Stanbic IBTC Holdings (85.9%).
In in bid to retain its banking license, FCMB Group Plc has opened 16,000,000,000 ordinary shares at N10.00k for subscription ahead of the first quarter of 2026 recapitalisation deadline.
The Central Bank of Nigeria (CBN) has disclosed that 14 banks have successfully recapitalised ahead of the deadline.
FCMB is targeting capital raising in the order of N397–N400 billion, via rights offerings, private placements, etc. (some portion already raised) to meet the new CBN thresholds, PAC Capital Limited said in a note.
How Has FCMB Boosted Shareholders’ Value?
With zero dividends, FCMB share price has increased by 16% in the first nine months of operation in 2025, Afrinvest Securities Limited stock recommendation data highlighted.
The group share price closed at N10.70 on Friday as 13.309 million units of FCMB Group valued at N139.655 million were transacted. The group shaved off about 2% of its market value due to soft sell-offs that pulled back its share price.
At the close of the trading session, the Nigerian Exchange placed N456.657 billion as the market value of FCMB Group Plc.’s 42.771 billion shares outstanding—more than 17% below its highest value in 52 weeks.
New Offer
FCMB has opened its fresh offer for subscription at a slight discount in a bid to raise N160 billion for recapitalisation. The financial services group prices its 16 billion ordinary shares at N10, while investors can purchase its share in the open market for N10.70 on Friday
The offer is scheduled to close on Thursday, November 6, 2025. FCMB Group is a diversified financial services group with diversified operations. The group plans to use the proceeds from the equity capital raise to recapitalise FCMB Limited in compliance with the CBN’s guidance to shore up the paid-up capital.
Earnings
FCMB Group announced N529.2 billion as gross revenue for the period ended June 2025, a 41.3% year-on-year growth from N374.5 billion for the same period the prior year.
The significant surge was driven by a 70.3% growth in interest income. However, non-interest income declined by 35.1%, driven by a N36.6 billion year-on-year decline in currency revaluation gains.
Overall, pretax profit and net income grew by 23% year-on-year to N79.1 billion and N73.4 billion, respectively, according to details from its half-year 2025 results.
Despite a surge in profitability, its board of directors left investors high and dry between tight price appreciation and zero interim dividends—not FCMB culture, though. MarketForces Africa recalled that a final dividend of 55 kobo was paid to shareholders in 2024. Money Market Liquidity Climbs to N6.6trn, CBN Refunds CRR
Forbearance May Hinder Dividend Payment
FCMB is yet to exit the CBN forbearance with associated restrictions on dividend payment.The group’s Nigerian banking subsidiary currently has loans under CBN forbearance—credit exposures to 3 entities and 2 obligors—amounting to ₦207.6 billion as at 31st May 2025.
The amount was a sharp decline from N538.8 billion exposure on its record as of September 30th, 2024.FCMB said the loans are currently classified as Stage 2 loans. FCMB notified the market it has made provisions for these loans over the last few years, and intensified resolution efforts have led to over 60% reduction in its credit forbearance exposures.
“Once these loans exit the CBN forbearance regime, we anticipate that this would lead to an initial spike in Stage 3 loans to about 11.5% of the total loan book, which would decline below 10% by the end of the financial year, based on anticipated loan book growth.”
The bank said it has one additional obligor classified as a Stage 1 loan since drawdown to date on the CBN forbearance for Single Obligor Limit (SOL).
The group said the obligor will be brought within SOL limit by September 30th, 2025, following the conversion to equity of a recently concluded N23.1 billion convertible loan and audited nine (9) months projected retained earnings.
In a regulatory filing, FCMB has, however, told the Nigerian Exchange that its third quarter of 2025 earnings results will be delayed amidst calls for investors to subscribe to its new shares.
The group said it will not be able to file its nine-month (Q3 2025) unaudited results for the period ending 30 September 2025 by the due date of 30 October 2025.
FCMB attributed this to the commencement of the interim audit of the company’s largest subsidiary, First City Monument Bank Limited, for the period ending 30 September 2025, said the results would have a material impact on the Group’s consolidated accounts.
