The FCMB returns for the first nine months of 2025 have impressed investors, registering a notable 16% gain despite the absence of interim dividend payments. Shareholders who invested ₦100 million at the start of the year saw their holdings increase by ₦16 million, with the bank’s share price closing at ₦10.90 by September. This steady growth highlights FCMB’s ability to deliver value even under challenging conditions in the Nigerian banking sector.
Comparing FCMB Returns to Tier-2 Banks
While FCMB delivered a 16% gain, other tier-2 banks posted higher capital appreciation. Ecobank’s shareholders gained 30.4%, Wema Bank soared by 97.8%, Sterling Bank rose 34.8%, and Stanbic IBTC Holdings saw an 85.9% increase. This comparison underscores that although FCMB offers steady returns, it remains slightly behind some peers in aggressive capital growth strategies.
Understanding Market Position
Despite modest returns compared to top performers, FCMB’s growth remains significant for conservative investors seeking stable capital appreciation. The bank’s performance demonstrates resilience amid market volatility and regulatory pressures.
Investor Confidence Amid Competition
The 16% gain reinforces shareholder confidence in FCMB’s strategy. While competitors may achieve higher short-term returns, FCMB’s consistent growth contributes to long-term investor trust and credibility in the Nigerian financial market.
Strategic Capital Raising Efforts
To comply with the Central Bank of Nigeria (CBN) recapitalisation requirements for 2026, FCMB Group Plc launched a fresh subscription of 16 billion ordinary shares at ₦10 per share. The objective is to raise between ₦397 billion and ₦400 billion through rights offerings, private placements, and other strategic initiatives.
Details of the Current Offer
The subscription is slightly discounted to encourage investor participation, as shares were trading at ₦10.70 on the market. This move is scheduled to close on Thursday, November 6, 2025. Proceeds from this capital raising will strengthen FCMB Limited’s balance sheet and align with the CBN’s updated capital requirements.
Impact on FCMB Returns
The capital raising initiative is expected to support sustained FCMB returns by providing additional liquidity and funding for strategic growth, enhancing both investor confidence and market position.
Financial Performance Highlights
FCMB Group reported gross revenue of ₦529.2 billion for the six-month period ending June 2025, representing a 41.3% increase from ₦374.5 billion in the same period the previous year. The growth was primarily driven by a 70.3% increase in interest income, while non-interest income fell by 35.1% due to a decline in currency revaluation gains of ₦36.6 billion.
Profitability and Earnings
Pretax profit increased by 23% year-on-year to ₦79.1 billion, while net income grew to ₦73.4 billion. Despite strong financial performance, investors did not receive interim dividends, diverging from the 2024 practice where a final dividend of 55 kobo per share was distributed.
Investor Perspective
Shareholders continue to benefit through FCMB returns in terms of capital appreciation. The steady price growth compensates, to some extent, for the absence of dividend payouts, maintaining overall investor satisfaction.
CBN Forbearance and Credit Management
FCMB is still operating under certain CBN forbearance restrictions, which limit dividend payments. As of May 31, 2025, Stage 2 loans totaled ₦207.6 billion, reduced from ₦538.8 billion the previous year through provision adjustments and resolution efforts. These measures demonstrate the bank’s proactive approach to risk management.
Future Loan Classification
Once loans exit the forbearance regime, Stage 3 loans may initially rise to 11.5% of the total portfolio but are expected to fall below 10% by the end of the year. Equity conversion and projected retained earnings are anticipated to maintain regulatory compliance and further improve FCMB returns.
Market Activity and Valuation
FCMB shares traded 13.309 million units valued at approximately ₦139.655 million, closing at ₦10.70. The group’s total market capitalization stood at ₦456.657 billion for 42.771 billion outstanding shares, over 17% below its 52-week peak. The trading data reflects a market cautiously optimistic about the bank’s growth and recapitalisation initiatives.
Investor Implications
For current and prospective investors, the observed FCMB returns suggest a balance of steady growth with long-term potential, making it an attractive option for risk-conscious participants in the Nigerian equity market.
Conclusion: Steady Growth and Strategic Outlook
FCMB’s 16% capital appreciation over nine months illustrates resilience, strategic planning, and prudent management despite regulatory and market challenges. The ongoing recapitalisation and proactive risk management are expected to strengthen FCMB returns in the long run. Investors can anticipate enhanced value as the bank aligns with CBN requirements, navigates market dynamics, and solidifies its financial foundation.
For further insights, read our related article on Africa Investment News.
For official regulatory updates, visit the Central Bank of Nigeria.
