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FCMB to Raise Fresh N76bn Equity


October 01, 2007/Independent



NB: We anticipate an offer price of N15 per share – Proshare


The expected public offer of First City Monument Bank (FCMB) is targeted at raising from the capital market fresh N76 billion tier 1 (equity capital).


The bank, with an existing N31bn shareholders’ fund is seeking to raise additional funds which should bring its total shareholders funds to an excess of N107bn. With that, FCMB is set to rank in the exclusive club of consolidated banks with over N100bn net worth.


Other details of the public offer will be made known in a week’s time at a special completion board meeting to herald the opening and public subscription.


Addressing financial journalists in Lagos on Monday on salient issues to the offer, the managing director and chief executive of the bank Mr. Ladi Balogun said the additional capital will be deployed to deepen the bank’s penetration and dominance in consumer and investment banking.


\"We are expanding our reach from the existing 135 branch network; invest in a training school; give further impetus to e-banking, upgrade working capital and broaden the bank’s capacity for big ticket transactions\" he added.


At present, FCMB is one of the fastest growing deposit money financial institutions in the country with gross earnings rising by 154 percent to N24.7 billion from N10.9 billion in 2006, deposits by 154 percent to N187 billion, risk assets by 319 percent to N83 billion, total assets by 154 percent to N263 billion from N106 billion, pretax profit by 104 percent from N3.6 billion to N7.4 billion while profit after tax advanced by 109 percent to N5.8 billion from N2.8 billion in the last financial year to April 2007.


Mr. Balogun said FCMB offers about the best investment opportunity in the Nigerian capital market today in view of the bank’s antecedents in the area of capital appreciation and records of impressive dividend payout.


Our bank is different from others on the strength of its people as well as on competence and market leadership in consumer and investment banking, said the bank chief.


The bank’s first quarter results for the new financial year 2007/2008 saw profitability growing by 137% from N1.4 billion to N3.3bn. The bank also declared impressive numbers on profitability.


Analysts said that confirms the sustenance of the bank’s impressive trend and ability to meet future earnings and returns projections to shareholders.


FCMB is the successor bank of the erstwhile FCMB and the acquired Cooperative Development Bank Plc, Nigerian American Bank Limited and Midas Bank Limited. – Independent

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