Shareholders endorse FCMB plan to raise N40b

Shareholders of First City Monument Bank Group Plc on Thursday approved the bank’s plan to raise N40 billion fresh capital through a combination of debt, equity or convertible debt financial instruments.

The shareholders gave the approval at the company’s second Annual General Meeting held in Lagos.

The shareholders said the capital raising exercise should be in order so as not to shortchange minority shareholders.

Ladi Balogun, the Managing Director of FCMB Bank Limited, said the new fund would enable the bank to transact big businesses.

Balogun said the company would consummate the transaction with potential investors before the 2015 annual general meeting.

He said the additional capital would afford the bank opportunity to do business and ensure stable growth.

Balogun said the bank had set a Capital Adequacy Ratio threshold of 17 per cent against the industry standard of 15 per cent and would need additional funds to maintain the threshold.

According to him, the aim of the bank is to maintain a comfortable CAR higher than industry standard.

“The additional fund will boost overall profit of the bank and will be done at the right time and we will not marginalise any shareholder,” he said.

The managing director said over 12 institutional investors comprising local, global and international had shown interest in investing in the bank.

The shareholders also approved the company’s total dividend of N4.95 billion, which tranlates to 25k per share, to all its shareholders for the financial year ended December 31, 2014.

Sunny Nwosu, the National Coordinator of the Independent Shareholders Association of Nigeria, urged the company not to neglect the minority shareholders in the capital raising exercise.

Nwosu said the company should not betray the trust bestowed on it by the minority shareholders over the years.

He commended the company for the impressive result and dividend declared during the period under review.

Nwosu said the group should maintain good corporate governance to avoid payment of unnecessary penalties to the regulators.

The company for the period under review posted gross earnings of N148.64 billion against N130.99 billion achieved in the preceding period of 2013, an increase of 13 per cent.

Profit before tax stood at N23.94 billion compared with N18.18 billion posted in 2013, representing a growth of 32 per cent.

Also, profit after tax grew by 38 per cent to N22.13 billion from N16.0 billion recorded in the comparative period of 2013.