• Monday, June 24, 2024
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FCMB Group shareholders approve N150bn capital raise to drive future growth plans

FCMB acquires $15m facility to boost trade finance

The shareholders of FCMB Group Plc at the company’s 11th Annual General Meeting (AGM) last Friday approved an increase in issued share capital from N9.901billion to N19.802billion and authorised a N150 billion capital raise to drive future growth plans.

The shareholders also approved a 100 percent increase in dividend payout to 50 kobo per share, up from 25 kobo in 2023, reflecting the Group’s commitment to delivering shareholder value.

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Oladipupo Jadesimi, chairman, FCMB Group Plc who commended the workforce’s contribution to the company’s strong operating performance said, “FCMB Group Plc demonstrated resilience, the result of which has given me the great pleasure of being able to inform you that for the full year ended 31 December 2023, the Group declared a profit before tax of N104.4 billion, up 185.6 percent from the full year 2022. The diligence exhibited by our workforce across the country have been remarkable. I commend everyone who contributed to this strong operating performance for the year under review. As we navigate through the challenges and opportunities that our mission presents, the Board and Management remain steadfast in their commitment to cultivating a culture that will inspire excellence in our employees, customers, partners, and every member of our ecosystem.”

This would be the first Annual General Meeting of FCMB Group Plc without the presence of the Founder, late Michael Olasubomi Balogun. A minute’s silence was observed at the commencement of the meeting and tributes were paid in his honour. Shareholders lauded the management for honouring and perpetuating the Founder’s legacy and the accelerating growth in most key indices, expressing optimism for a more rewarding future.

In his comments, Chief Timothy Adesiyan of Nigeria Shareholders Solidarity Association said: “We are happy that FCMB Group and its subsidiaries are growing in leaps and bounds. Of note are the strong corporate governance structures, succession plan and the commitment of the Bank to support key sectors of the economy, including corporate social responsibility programmes. However, the Bank should expand its interventions to artisans and other underserved sectors. We were grateful that from the 25 kobo dividend paid last year, and now we are receiving 50 kobo this year, a 100 percent increase. The Board, Management and Staff should continue to sustain the legacy of the late Founder, Otunba Subomi Balogun.”

In seeking approval for the N150 billion increase in share capital, the Group on behalf of its flagship bank, made clear its aspirations to retain its international license, with this year’s capital raise being the first step in that process.

Also speaking, Eke Emmanuel, Secretary General of the Independent Shareholders Association of Nigeria (ISAN) applauded FCMB Group’s results and endorsed the capital raising programme. He said:

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“The 2023 financial results of FCMB Group Plc show that the institution is in a healthy position and ready to transform challenges into opportunities. The recapitalisation plans are commendable and achievable. We are optimistic that FCMB will scale the hurdle and be better positioned to deliver more value to shareholders and Nigeria.”

The AGM concluded with renewed confidence among shareholders and stakeholders in the financial institution’s leadership and strategic direction. Board members reassured shareholders of their commitment to maintaining high governance standards and delivering consistent value while highlighting ongoing efforts to enhance risk management frameworks and ensure full regulatory compliance to safeguard the Bank’s reputation.