FCMB Group Delivers Strong 9M 2025 Performance and Positive Q1 2026 Outlook Amid Operational Pressures

WA

Wane_Investment_House

Wane_Investment_House

Not Invested

Community Contributor

Published

31 Jan 25

Updated

11 Dec 25

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n/a

Wane_Investment_House's Fair Value

n/a

1Y

17.2%

7D

-3.2%

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1Y

17.2%

7D

-3.2%

You can edit this narrative until Dec 12 5:55 PM. Then, changes will post as Updates.

Author's Valuation

₦917.2% overvalued

Wane_Investment_House's Fair Value

Shared on 11 Dec 25

Fair value Decreased 13%

Valuation due Excess issuance of additional share

Shared on 03 Dec 25

FCMB – Strategic Innovation Drive Reinforces Leadership in Agribusiness Finance

First City Monument Bank (FCMB), in partnership with the Dutch Entrepreneurial Development Bank (FMO) and HeaveVentures, successfully concluded the FCMB AgriTech Hackathon 2025 —a landmark initiative designed to accelerate innovation, sustainability, and digital transformation across Nigeria’s agricultural value chain. The program underscores FCMB’s long-term strategy of enhancing food security, empowering SMEs, and integrating technology into agribusiness finance.

Shared on 23 Nov 25

Investor Concerns Deepen as FCMB Again Raises Capital Ceiling to ₦400 Billion

FCMB Group Plc’s decision to further expand its capital-raising ceiling—now lifted to ₦400 billion from ₦370 billion barely two weeks after an earlier increase—has triggered growing unease among shareholders and market analysts. Many argue that the Group’s repeatedly shifting capital targets risk diluting shareholder value and cast doubt on the clarity of its long-term capital strategy.

Shared on 08 Oct 25

FCMB Group Plc: Strengthens Capital Base via Mandatory Convertible Loan Conversion Analyst Name: Adebara Qudus Sector: Banking / Financial Services Analyst View: Positive – proactive recapitalization, balance sheet strengthening ahead of CBN’s 2026 capital deadline Transaction Overview The Nigerian Exchange Limited (NGX) has listed 3.16 billion additional ordinary shares of FCMB Group Plc , following the conversion of a N23.11 billion mandatory convertible loan (including accrued interest) into equity. · Effective Date: September 23, 2025 · Conversion Price: N7.30 per share · Nominal Value: 50 kobo per share · New Total Shares Outstanding: 42.77 billion (up from 39.61 billion) · Market Capitalization: N446.96 billion (at N10.45/share) — a N33.09 billion increase This conversion forms a core component of FCMB’s ongoing recapitalization programme targeted at strengthening its balance sheet and aligning with the Central Bank of Nigeria’s (CBN) new capital adequacy requirements.

Shared on 07 Aug 25

FCMB Group Plc has emerged as one of the most dynamic financial institutions in Nigeria’s mid-tier banking space, delivering robust revenue growth, expanding margins, and digital-led transformation. In H1 2025, the Group reported strong top-line momentum (+41.3% YoY), efficient balance sheet management, and resilient profitability despite macroeconomic headwinds.

Shared on 30 Jul 25

Subject: FCMB Delivers Strong Earnings Surge in H1 2025 Despite Margin Pressure FCMB Group Plc posted an impressive 41.3% YoY growth in gross earnings to N529.2bn in H1 2025, underpinned by a robust 70.3% increase in interest and discount income to N458.4bn. This stellar top-line performance signals strong momentum in core banking operations, supported by balance sheet growth and improving asset yields.

Shared on 30 Jul 25

FCMB Group has projected a profit after tax of N36.6bn for the second quarter ending June 30, 2025. The group’s earnings forecast shows that gross earnings are expected to reach N239.4bn, with interest income projected at N209.1bn.

Shared on 24 Jul 25

Investment Thesis: FCMB’s Strategic Real Estate Play Unlocks Long-Term Value Thesis Summary: FCMB’s strategic partnership with TotalEnergies Staff Housing Cooperative (TEHC) to finance and deliver the Louisville Phase 1 residential tower in Eko Atlantic City positions the bank to benefit from Nigeria’s expanding real estate and urban development opportunities. While short-term earnings contribution may be modest, this bold move enhances FCMB’s brand, aligns with sustainable development goals, and could unlock future fee income, mortgage growth, and real estate-linked asset creation.

Shared on 07 Mar 25

Fair value Decreased 6.27%

WaneInvestmentHouse has decreased revenue growth from 28.5% to 10.0%, increased profit margin from 35.8% to 42.0% and increased future PE multiple from 1.7x to 3.0x.

Wane_Investment_House'sFair Value

₦9

17.2% overvalued

Future estimation in

% p.a.

0

Decrease

Increase

Current revenue growth rate

0.00%

Banks revenue growth rate

0.26%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

10.00%

Calculation

₦662.86b

Earnings '30

x

3.00x

PE Ratio '30

=

₦1.99t

Market Cap '30

₦1.99t

Market Cap '30

/

63.08b

No. shares '30

=

₦31.53

Share Price '30

₦31.53 Share Price '30

Discounted to 2025 @ 28.49% p.a.

=

₦9.00

Fair Value '25