₦airaland Forum

FCMB Group Plc, a leading financial services holding company in Nigeria's financial sector, held a Facts Behind the Offer (FBO) session recently at the Nigerian Exchange (NGX) as part of its recapitalization drive aimed at raising ₦110.9 billion. The session highlighted the Group's robust financial performance and underscored why it presents a compelling investment opportunity.

The Group commenced its public offer of 15.197 billion shares at N7.30 per share, amounting to N110.9 billion, on July 29, 2024, and is expected to close on September 4, 2024.

Its presentation at the NGX focused on its strong profitability and strategic growth trajectory. The Group reported a significant increase in earnings, showcasing its diversification, resilience and operational efficiency in a competitive market. This strong financial performance is a testament to its effective management and strategic foresight.

The Group Chief Executive Officer of FCMB Group, Mr Ladi Balogun, said the public offer is part of the bank's comprehensive plan to meet the Central Bank of Nigeria's (CBN) capitalization requirements, adding that in addition to it, the Group has adopted a phased approach to raise up to N397 billion additional capital to drive its diversification plans.

He stated: FCMB is growing at approximately two million customers a year, and we believe that growth rate will accelerate. In banking, we are about number seven in net assets and among the top five Pension Fund Administrators (PFA) in the country.

"Our goal is to sustain and grow earnings per share for our investors despite our additional share issuance. The proceeds from this capital raise will primarily drive business growth, focusing on lending to key sectors such as agriculture, SMEs, and non-oil exports, which we believe are vital for Nigeria's development".

Mr. Balogun stressed that the capital would enable the Group to enhance its market position, invest in innovative technologies, and continue delivering substantial value to its stakeholders.


Key highlights from the session included:

Strong profitability: FCMB Group has demonstrated impressive year-on-year revenue and profit growth, reflecting its unique business model and strategic execution.

Strategic expansion plans: The capital raise will support significant digital transformation investments, expand market reach, and strengthen the Group's competitive edge.

Resilient performance: Despite economic uncertainties, FCMB Group has maintained a robust performance, evidencing its ability to navigate challenges effectively and sustain long-term growth.

Experienced management: The Group's leadership team brings extensive industry expertise and a proven track record, reinforcing investor confidence in the company's strategic direction.

The FBO session provided a transparent view into FCMB Group's strategic objectives, positioning the Group as a viable and lucrative investment opportunity. With a clear focus on profitability and growth, FCMB Group is well-positioned to leverage the capital to drive further success and deliver sustainable returns.

96ACE:
Why are all the Nigerian banks selling shares all of a sudden?

AkhereOkaka:
To raise their capital base, as instructed by CBN.


We rise by lifting others

lordm:
I can't buy shares, I would rather buy land and resell in a year time

96ACE:
Why are all the Nigerian banks selling shares all of a sudden?

stephenponti:
My first bank share in 2010 is worthless in 2024.
Dont buy Nigerian bank shares. Ask Mathew Ashimolowo he lost 100m in Nigeria bank shares. Ask any body with bank share how the investment has fared, you will here the same story of premium tears.

ppogba:
Are you not in Nigeria or are you just asking for the sake of it?

96ACE:
Why are all the Nigerian banks selling shares all of a sudden?

Namaster:
I find it hilarious that ANY bank in Nigeria would attribute their financial success to "effective management and strategic foresight".

So funny!

Banks in Nigeria are one of the SHITTIEST institutions in Nigeria. Their physical services are rife with INEFFICIENCIES and you'd OFTEN have to the with incompetent or passive aggressive customer reps.

Their ONLINE servic s are even WORSE. A bank's MAJOR app would go offline for several hours and they may NOT even bother to let you know.

A week has not gone by that I've not received some kind of "we are working on it" message from Sterling Bank.

Banks in other countries make a major part of their revenue from making consumer CREDIT available to customers. They make it SUPER easy for people to get credit facilities by making credit cards available to customers.

There are people who have worked in Nigerian banks for DECADES that do not know something like credit cards exist.

Unless you are a BILLIONAIRE, getting access to credit facilities from Nigerian banks would require to twist and turn and jump through INSANE hoops.

And then there are the CHARGES. Oh the charges!

You want to send money? Charges!
You want to receive money? Charges!
You have an ATM/Debit card? Charges!
You did NOT do anything with the accoun? It's just there? Here are some MORE charges!

I once got charged ATM card maintenance fees when I did not even have an ATM card linked to that account.

The ONLY reason Nigerian banks keep making INSANE money is bevause of the disorganised and CORRUPT system in Nigeria that lets them scam customers.

Another reason banks make so MUCH money is the fact that we don't have a FUNCTIONAL legal system where people can SUE them for enough money to bankrupt them for their criminal ways.

96ACE:
Is there any harm in asking a question I don’t have an answer to? I’m I invading your space? of what relevance is this your question to you or anyone reading these comments?

vanvickie:
Because of recapitalisation

96ACE:
Why are all the Nigerian banks selling shares all of a sudden?

samomoli:
God forbid l buy Nigerian bank shares. Bought shares over 50k in 2006. When one of my friends ask me to buy half plot for 30k. That same area today half plot is like 1m. My shares not worth 70k. Truth, don't be deceived. Thank God,l have my own house now.let them chop their shares. Be wise

Namaster:
I find it hilarious that ANY bank in Nigeria would attribute their financial success to "effective management and strategic foresight".

So funny!

Banks in Nigeria are one of the SHITTIEST institutions in Nigeria. Their physical services are rife with INEFFICIENCIES and you'd OFTEN have to the with incompetent or passive aggressive customer reps.

Their ONLINE servic s are even WORSE. A bank's MAJOR app would go offline for several hours and they may NOT even bother to let you know.

A week has not gone by that I've not received some kind of "we are working on it" message from Sterling Bank.

Banks in other countries make a major part of their revenue from making consumer CREDIT available to customers. They make it SUPER easy for people to get credit facilities by making credit cards available to customers.

There are people who have worked in Nigerian banks for DECADES that do not know something like credit cards exist.

Unless you are a BILLIONAIRE, getting access to credit facilities from Nigerian banks would require to twist and turn and jump through INSANE hoops.

And then there are the CHARGES. Oh the charges!

You want to send money? Charges!
You want to receive money? Charges!
You have an ATM/Debit card? Charges!
You did NOT do anything with the accoun? It's just there? Here are some MORE charges!

I once got charged ATM card maintenance fees when I did not even have an ATM card linked to that account.

The ONLY reason Nigerian banks keep making INSANE money is bevause of the disorganised and CORRUPT system in Nigeria that lets them scam customers.

Another reason banks make so MUCH money is the fact that we don't have a FUNCTIONAL legal system where people can SUE them for enough money to bankrupt them for their criminal ways.

Namaster:
I find it hilarious that ANY bank in Nigeria would attribute their financial success to "effective management and strategic foresight".

So funny!

Banks in Nigeria are one of the SHITTIEST institutions in Nigeria. Their physical services are rife with INEFFICIENCIES and you'd OFTEN have to the with incompetent or passive aggressive customer reps.

Their ONLINE servic s are even WORSE. A bank's MAJOR app would go offline for several hours and they may NOT even bother to let you know.

A week has not gone by that I've not received some kind of "we are working on it" message from Sterling Bank.

Banks in other countries make a major part of their revenue from making consumer CREDIT available to customers. They make it SUPER easy for people to get credit facilities by making credit cards available to customers.

There are people who have worked in Nigerian banks for DECADES that do not know something like credit cards exist.

Unless you are a BILLIONAIRE, getting access to credit facilities from Nigerian banks would require to twist and turn and jump through INSANE hoops.

And then there are the CHARGES. Oh the charges!

You want to send money? Charges!
You want to receive money? Charges!
You have an ATM/Debit card? Charges!
You did NOT do anything with the accoun? It's just there? Here are some MORE charges!

I once got charged ATM card maintenance fees when I did not even have an ATM card linked to that account.

The ONLY reason Nigerian banks keep making INSANE money is bevause of the disorganised and CORRUPT system in Nigeria that lets them scam customers.

Another reason banks make so MUCH money is the fact that we don't have a FUNCTIONAL legal system where people can SUE them for enough money to bankrupt them for their criminal ways.