Balogun:  N160bn Public Offer Will Make FCMB Stronger Financial Institution

Kayode Tokede

The Group Chief Executive Officer of the FCMB Group, Ladi Balogun, has stateed that the Group’s N160 billion public offer would support the building of a stronger financial institution.

Balogun said this at the ‘Facts Behind the Offer’ presentation at the Nigerian Exchange Limited, where he emphasised that the offer marked a critical phase in the group’s recapitalisation programme.

Speaking at the event, Balogun traced the Group’s history with NGX, highlighting how the Exchange has facilitated approximately $863million in capital raising since the bank’s inception, with recent rounds heavily supported by domestic investors. This confidence from local market participants is especially vital for economic stability and long-term sector growth.

FCMB Group had raised N147.5billion in its first public offer, which recorded 33 per cent oversubscription. The offer, which received the necessary approvals from the Central Bank of Nigeria and the Securities and Exchange Commission, attracted 42,800 investors, 92 per cent of whom subscribed through digital channels such as the bank’s mobile app.

The fresh offer is designed to strengthen its group’s capital base, retain its international banking licence, and enhance shareholder value in line with the Central Bank of Nigeria’s new N500bn capital requirement for international banks.

In FCMB’s H1 2025 financial results, Balogun disclosed a 23 per cent profit before tax increase and a 20.6 per cent return on equity.

He explained that “the cost of funds remains high due to the 50 per cent cash reserve requirement, meaning half of deposits earn zero interest. Raising equity helps repay expensive deposits, effectively creating higher yields on that capital.”