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Shareholders endorse FCMB’s plan to raise more N40 billion


FCMB Group PlcShareholders of FCMB Group Plc, yesterday, approved the bank’s plan to raise additional N40 billion capital by way of equity, debt and convertibles debt.

Besides, they also endorsed a total dividend of N4.95 billion, translating to 25kobo dividend for the 2014 financial year.

The shareholders, who spoke during the second yearly general meeting of the bank in Lagos at the weekend, commended the management for the efficient running of the affairs of the Group, as well as the improved performance recorded during the year under review, amid harsh economic environment.

Specifically, the Coordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended the board and management of FCMB Group Plc for the performance and dividend payment, amid harsh operating environment.

He said: “The increase in the Group’s profit from N16b in 2013 to N22b in 2014 is commendable. It is a clear signal that things are looking up. We are also happy that FCMB has emerged as a strong player in retail banking and from what we have seen so far, we are optimistic that the Bank will continue to wax stronger’’.

The National Cordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, also commended the bank for their prudent management of affairs of the bank as well as its performance, while urging them to do everything within its powers to consolidate on the performance to enable it enhance shareholders value.

The Group Managing Director, First City Monument Bank Limited, Ladi Balogun explained that 12 institutional investors, comprising of both local and foreign has already expresses willingness to invest in the company.

According to him, the capital raised would boost the overall profit of the bank and help grow the business.

Balogun, who assured shareholders that the bank would carry out the transaction in such a way that it would not affect the interest of the existing shareholders, also added that the transactions would be done in compliance with various regulatory directives.

He pointed out that the Bank 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 position 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.

Following the Bank’s renewed focus on retail banking, Balogun said the bank acquired 500,000 customers in 2014, offering support to 278,518 borrowing customers during the year with loan disbursements.

The Bank also provided greater convenience for its retail customers by rolling out 245 new ATMs, just as it migrated more customers to alternate channels.

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