AGS NEWS – The FCMB Group has announced its intention to seek approval from shareholders to raise approximately N150 billion in additional capital.

The disclosure was made in the notice of its Annual General Meeting, which was filed with the Nigerian Exchange Limited.

This move comes in response to the recent directive from the Central Bank of Nigeria, instructing Deposit Money Banks to recapitalize, with banks holding international licenses expected to raise their capital to N500 billion.

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To meet this requirement, banks were given three options by the CBN, including issuing new common shares, mergers and acquisitions, and upgrading or downgrading their license category.

Several banking groups, such as Access Holdings, FBN Holdings, Guaranty Trust Holding Company Plc, Zenith Bank, and United Bank for Africa, have already announced plans to raise funds from both domestic and international capital markets.

The FCMB Group’s board has proposed that shareholders ratify the N150 billion capital raise and vote on increasing the group’s issued share capital.

The establishment of an Employee Share Option Program will also be presented to shareholders for approval.

Meanwhile, the FCMB Group recently released its audited report for 2023, declaring a profit before tax of N104.4 billion, marking a 186 percent year-on-year growth.

The group’s divisions recorded robust earnings growth, with the banking group at 212.6 percent, consumer finance at 67.3 percent, investment management at 40 percent, and investment banking at 89.7 percent.

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The group’s gross revenue increased by 82.5 percent to N516.4 billion, driven by growth in interest and non-interest income.

However, operating expenses rose by 38 percent due to various factors such as personnel costs, regulatory costs, technology-related expenses, and general inflationary pressures.