First City Monument Bank’s parent company has completed a major recapitalisation exercise that lifts its banking subsidiary above the capital threshold set by the Central Bank of Nigeria. The development places the financial group among the institutions that have successfully adjusted to the regulator’s new capital regime aimed at strengthening the country’s banking sector.
FCMB Group Plc confirmed that it has concluded its capital raising programme designed to reinforce the balance sheet of its banking arm, First City Monument Bank Limited. According to the group, the exercise attracted approvals from several regulators, including the Central Bank of Nigeria, the Securities and Exchange Commission and the National Pension Commission.
In a statement announcing the milestone, the company said, “FCMB Group Plc announces the successful completion of the capital raise programme undertaken for its banking subsidiary, First City Monument Bank Limited.”
The recapitalisation process combined proceeds from a public share offer and the sale of minority interests in one of its subsidiaries. The group disclosed that its 2025 public offer generated roughly N231.8 billion in gross proceeds. In addition, it realised about N11 billion through the divestment of around 10 percent of the issued share capital of FCMB Pensions Limited.
These transactions form part of a broader capital strategy initiated in response to regulatory directives requiring Nigerian banks to strengthen their financial base. The apex bank had introduced new minimum capital thresholds as part of a sector wide recapitalisation programme launched in 2024.
FCMB initially planned to mobilise N340 billion to support the recapitalisation of its banking subsidiary. However, the target was subsequently revised upward as regulatory expectations evolved and the institution sought to maintain a comfortable capital buffer. The group raised the ceiling to N370 billion in 2025 and later expanded it to N400 billion.
Management clarified at the time that the adjustments were primarily meant to ensure compliance with regulatory standards rather than to launch a completely new funding round. The strategy reflects a broader industry trend as banks pursue public offers, rights issues and private placements to reinforce their capital base.
Financial projections from the group indicate that the enlarged capital base will support stronger profitability in the coming years. FCMB expects earnings per share to rise significantly, climbing from about N1.85 recorded in 2024 to an estimated N4.60 by 2026, driven by improved returns on equity.
The recapitalisation effort is also supported by the bank’s recent financial performance. For the financial year ended December 31, 2025, FCMB reported a pre tax profit of N200.91 billion, representing an increase of about 80 percent compared with N111.9 billion recorded in the previous year. Gross earnings climbed by 41.8 percent to N1.13 trillion, while profit after tax surged by more than 140 percent to N176.91 billion.
Regulators say the sector wide recapitalisation programme is progressing steadily. The Central Bank recently disclosed that dozens of financial institutions have already met the revised minimum capital requirements across different licence categories.
With the recapitalisation exercise now completed, FCMB’s strengthened capital position is expected to enhance its capacity to expand lending, pursue growth opportunities and remain competitive as Nigeria’s banking industry adapts to tighter regulatory standards.
