FCMB Group Plc is currently in the market for its public offer to raise N110 billion. The financial holding company is issuing 15,197,282,219 ordinary shares of 50 kobo each at N7.30 per share. The offer which opened on Monday, July 29 will end on Wednesday, September 4, 2024.
FCMB Group has over the last 45 years evolved into a diversified financial services group with operations in banking, consumer finance, investment management, and investment banking.
The Group has sustained impressive financial performance, delivering strong year-on-year (YoY) profitability growth. Its earnings remain well diversified with the Nigerian bank accounting for 68 per cent of pre-tax profit and 32 per cent from other subsidiaries.
The Offer is being undertaken to shore up the paid-up capital of FCMB Limited, ensuring that the bank’s total paid-up capital complies with the Central Bank of Nigeria (CBN) new minimum capital requirement as contained in the CBN March 2024 Circular.
The Lead Issuing House for the offer is Chapel Hill Denham Advisory Limited while the Joint Issuing Houses are FCMB Capital Markets Limited, Coronation Merchant Bank, Capital Bancorp Plc, FBNQuest Merchant Bank, FSDH Capital Limited, Futureview Financial Services Limited, Meristem Capital Limited, Stanbic IBTC Capital Limited, and United Capital Plc.
The Group’s flagship subsidiary FCMB Limited will invest the fund to accelerate the execution of its expansion growth plans that would further enhance stakeholder value creation. The offer proceeds will be used as follows: Business growth and expansion; Investment in IT and cybersecurity infrastructure; and Investment in human capital.
FCMB Group has seven (7) principal and two (2) tertiary subsidiaries. The subsidiaries under its banking group are First City Monument Bank Limited, FCMB Bank (UK) Limited, and FCMB Microfinance Bank Limited.
Another subsidiary Credit Direct Limited is under the FCMB Group consumer finance business while FCMB Pensions Limited, FCMB Trustees Limited, and FCMB Asset Management Limited are the Group’s subsidiaries under its investment management business. The Group also has CSL Stockbrokers and FCMB Capital Markets Limited as its subsidiaries overseeing the investment banking business,
During the Facts Behind the Offer presentation at the Nigerian Exchange Limited (NGX), Ladi Balogun, Group Chief Executive, FCMB Group Plc who presented compelling evidence of the Group’s resilience, operational strength and financial performance noted that despite ongoing economic uncertainties and market fluctuations, FCMB Group has sustained robust growth and demonstrated exceptional resilience.
The Group CEO told the capital market community during the Facts Behind the Offer presentation that FCMB Group’s earnings are expected to grow by a compound annual growth rate (CAGR) of more than 50 per cent over the next three years leading to significant earnings per share (EPS) accretion and dividend per share (DPS) growth (20 per cent of EPS) post-recapitalisation.
Attendees at the session had the opportunity to engage with FCMB Group’s executive team, gaining insights into the Group’s strategic priorities and plans. Discussions included the Group’s focus on digital transformation, sustainable finance, and its plans to leverage emerging market opportunities for continued growth.
The Group reported notable improvements in key financial metrics, including revenue growth and profitability, underscoring its effective management and strategic agility.
FCMB Group’s strong financial performance and resilience in the face of adversity reaffirm its position as a leader in the financial sector, poised for sustained success and growth, and these constitute the strong points that cast it as a profitable investment.
“Our performance this year is a reflection of FCMB Group’s resilience and our ability to adapt to changing market conditions. Today’s presentation at the Nigerian Exchange highlights not just our financial achievements but also our commitment to delivering long-term value to our shareholders and stakeholders,” Balogun said during the Facts Behind the Offer presentation.
The session spotlighted several key achievements of the Group, including a significant increase in net income, and continued expansion in digital banking services. The Group’s diverse portfolio and innovative strategies have enabled it to navigate economic challenges successfully while continuing to invest in growth and sustainability.
FCMB Group recorded a profit before tax (PBT) of N64.2 billion in the first half (H1) of 2024, marking a 68 per cent year-on-year growth from the N38.2 billion posted in the corresponding period of 2023.
It recorded a gross earning of N374.5 billion in H1’2024, representing a 57 per cent year-on-year (YoY) improvement from the N238.2 billion gross earning posted in H1’2023. Interest income of N269.2 billion represents an 81 per cent YoY increase from the N149 billion interest income in H1’2023.
Also in the first half of 2024, customers’ deposits in FCMB Group increased by 26 per cent to N3.9 trillion, from N3.1 trillion as of FYE 2023. FCMB Group’s net loans and advances to customers increased by 32 per cent in H1 2024 to N2.43 trillion, from N1.84 trillion as of FYE 2023.
During the period, the group’s net profit hit N59.5 billion, which was a 68 per cent YoY improvement from the N35.4 billion posted in H1 2023.
FCMB Group posted a net interest income of N106.2 billion during the period, marking a 47 per cent improvement from the N72.3 billion as of H1 2023. There was also a 33 per cent YoY decline in net impairment losses during the period to N31.3 billion, from N47.1 billion as of H1 2023.
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