FCMB Group Plc has successfully raised N500 billion, enabling its banking subsidiary to meet the Central Bank of Nigeria’s (CBN) international banking license capital requirement. The milestone places FCMB among banks that have complied with the apex bank’s new capital thresholds amid the sector’s ongoing capital restructuring.
While large capital raises often raise concerns about share dilution, FCMB managed to maintain strong earnings growth. Shares outstanding increased from 39.6 billion in 2024 to 42.8 billion in 2025, reflecting the recapitalization.
Despite this, the bank’s 2025 financial results demonstrate robust performance. Profit before tax rose 80% to N200.9 billion from N111.9 billion in 2024, while profit after tax surged 141% to N176.9 billion, largely driven by interest income surpassing N1 trillion.
Earnings per share (EPS) rebounded to N3.96 in 2025, up from N2.46 in 2024, showing that profit growth outpaced the dilution effect. Over a longer term, FCMB’s EPS grew from N1.05 in 2021 to N3.96 in 2025, implying an annualized growth rate of about 39%.
Despite strong performance, FCMB’s stock trades at relatively modest valuation multiples: roughly 3.28x earnings, 0.73x book value, and 0.53x sales. Using projected profits of N62.6 billion for Q1 and N67.9 billion for Q2 2026, the bank could generate about N260 billion in profit for the year, implying an EPS of around N6.1.
At the current market price of approximately N13, the stock trades at roughly 2x forward earnings, a significant discount compared with Nigerian banking peers, many of which trade between 3x and 6x earnings. Analysts say even a modest re-rating toward sector averages could substantially narrow this valuation gap.
