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FCMB shareholders approve N40bn capital raising exercise

By on April 28, 2015

Shareholders of FCMB Group Plc last week approved the bank’s plan to raise the sum of N40 billion in debt and equity as part of strategies to maintain a significant threshold of Capital Adequacy Ratio (CAR) and also transact big businesses.

The shareholders also approved the payment of a cash dividend of 25 kobo per ordinary share, for the year ended December 31, 2014.
The approvals were given by the shareholders  at the second annual general meeting (AGM) of FCMB Group Plc held in Lagos.

Speaking on the capital raising exercise,  the Managing Director, First City Monument Bank Limited, Mr. Ladi Balogun,  said would the company would consummate the transaction with potential investors before the next AGM.

According to him,  the bank had set a CAR  threshold of 17 per cent against the industry standard of 15 per cent,  the aim of the bank is to maintain a comfortable CAR higher than industry standard.
“The additional funds  will boost overall profit of the bank and will be done at the right time and we will not marginalise any shareholder,” he said.

The managing director said that over 12 institutional investors comprising local, global and international had shown interest  in investing in the bank.

Speaking on the performance of the bank for 2014,   Balogun pointed out that the  it made considerable progress on the priorities it set out last year, including accelerating market share in retail banking, primarily through consumer finance; enhanced investment in customer experience as a means of growing customer base and containment of operating expense.

‘’Our capital positioned strengthened over the year. We successfully raised N26 billion tier 2 capital,  which helped us maintain a reasonable capital adequacy ratio, at 19 percent. We remain well placed to meet expected future growth requirements’’, he said.

In his statement to shareholders,  the Chairman of FCMB Group, Dr. Jonathan Long, stated that the group, which comprises First City Monument Bank Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, “has achieved a strong and sustained growth over the past three years’’, adding that during the past year, the Group continued the profitable development of its core banking, capital markets and stock-broking businesses.”

Also speaking,  Managing Director of FCMB Group Plc, Mr. Peter Obaseki, noted that, “the Group is on track to deliver on its promise to its various shareholders’’.

According to him, financial holding company structure adopted by FCMB in 2013 has given, ‘’opportunity for us to diversify our revenue sources and minimise our exposure to the risks inherent in some of the businesses in our portfolio of investments’’.

 

[ThisDay]