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FCMB plans N25bn public offer

ocotber 19, 2006 01:59:49 First City Monument Bank Plc is set to increase its authorised share capital to N10bn, from the current N5bn and raise N25bn from the capital market. Shareholders of the bank will on Friday, approve the proposed increase in share capital at the Annual General Meeting scheduled to hold in Lagos. The shareholders are also expected to authorise the directors to raise about N25bn from the market through a public offer. According to the directors, the N25bn would be raised through the issuance or combination of debentures and/or bonds and/or preference shares and/or equity. As at April 30, 2006, the banks’ shareholders’ funds stood at N25.163bn. Findings by our correspondent on Wednesday, showed that there would not be any preferential allotment to either local or foreign investors. Although the bank had a goodwill of N3.879bn that rose from the bank’s merger with former Cooperative Development Bank Plc, Nigerian-American Merchant Bank Limited and acquisition of Midas Bank Limited, the shareholders recently approved that the goodwill be written off at once. This was done to enable the bank pay dividend for the year ended April 30, 2006. The Managing Director/Chief Executive Officer, FCMB, Mr. Ladi Balogun, recently projected a profit before tax of N7.059bn for the year ending April 30, 2007, showing an increase of 93 per cent above N3.64bn posted for the year ended April 30, 2006. Given the track record of the bank, he said that the projection could be surpassed. He said, “We have consistently surpassed our projections since we became publicly quoted. For the financial year ended 2006, we surpassed PBT forecast by 18 per cent. “We also surpassed the dividend forecast by eight per cent, in spite of the challenges with the Banks and other Financial Institutions Act.” He added that a net profit of N5.577bn would be recorded, while shareholders will get N2.376bn as dividend next year. Balogun said that consumer banking would be the largest revenue earner for FCMB in the next five years with mortgages, personal loans and wealth management being the key focus. “Corporate and commercial banking will focus on high growth sectors such as telecommunications, oil and gags, transportation, construction and building materials. “Cross selling will remain a key selling proposition and focus will be renewed on investment management and investment banking,” he added. - punch
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