Ladi Balogun, Group CEO, FCMB Group

FCMB Group Plc plans to deploy proceeds from its ongoing share offer to enhance profitability, improve operational efficiency, and deliver greater returns to shareholders.

The bank, which successfully raised N144.60 billion from a recent offer, has launched a new public share sale targeting an additional N160 billion. The capital will strengthen First City Monument Bank (FCMB) and ensure compliance with the Central Bank of Nigeria’s N500 billion minimum capital requirement for international banks.

Group Chief Executive, Ladi Balogun, said the strategy combines aggressive cost-cutting and technology-driven transformation to achieve sustainable returns beyond 2026.

“The more we use technology, the more productive we are. Technology will make us more efficient. The more efficient we are, the more our customers are satisfied,” Balogun said.

FCMB aims to reduce its cost-to-income ratio (CIR) to 50% in 2026 and further to 47% by 2027. The CIR, which measures operating costs as a percentage of operating income, improved to 57% in the first half of 2025 from 59.9% at the end of 2024.

The bank has also successfully lowered its cost of funds, which fell to 8.20% in Q2 2025 from 8.60% the previous quarter. Its low-cost deposit mix increased to 69.3% by mid-2025, compared to 58.2% a year earlier.

Despite rising operational costs, which climbed 46.81% to N153.2 billion in June 2025 due to higher personnel and regulatory expenses, FCMB continues to adapt to Nigeria’s challenging macroeconomic environment, including high inflation and a cost-of-living crisis.

In line with its efficiency drive, FCMB has upgraded its mobile banking app, incorporating cutting-edge features to streamline transactions and improve customer experience. The bank is also exploring generative AI solutions to enhance operational processes and deliver faster, more convenient services.

The measures come amid a more accommodative monetary policy by the Central Bank of Nigeria, which cut the benchmark interest rate by 50 basis points to 27% in September, prompting Nigerian banks to pursue innovative strategies to sustain profitability and shareholder returns.

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