FCMB Group Plc has moved to reassure investors, analysts and stakeholders of its financial resilience and continued regulatory compliance following the Central Bank of Nigeria’s (CBN) latest directive on enhanced prudential measures for banks operating under regulatory forbearance.
In a corporate disclosure signed by Company Secretary Funmi Adedibu, the Group acknowledged it currently has forbearance-related credit exposures of ₦207.6 billion as of May 31, 2025.
This represents a significant reduction of over 60% from the ₦538.8 billion reported in September 2024, underscoring what the Group described as “intensified resolution efforts.”
According to FCMB Group, the outstanding exposures—linked to three entities and two obligors—are classified as Stage 2 loans. The Group anticipates that once these loans exit the forbearance window, it will result in a temporary spike in Stage 3 loans to approximately 11.5% of the total loan portfolio.
However, the Group expects this figure to decline to below 10% by year-end due to projected loan book expansion.
The statement also addressed a separate regulatory forbearance related to a Single Obligor Limit (SOL) issue involving one additional borrower. This loan, which has remained in Stage 1 since drawdown, will be resolved by September 30, 2025.
Resolution plans include converting a recently concluded ₦23.1 billion Convertible Loan into equity and factoring in projected retained earnings over nine months.
“The Group has already received CBN approval for the capital verification of the Convertible Loan and is in the process of obtaining other required regulatory approvals,” the statement noted.
Once completed, FCMB’s Nigerian banking subsidiary will increase its share capital and premium to approximately ₦267 billion. This capital injection, combined with audited retained earnings, will keep the Bank’s Capital Adequacy Ratio above the 15% minimum threshold required for international banks post-forbearance.
In terms of dividend sustainability, FCMB Group indicated that its Nigerian banking operations contributed 46% of the total dividend paid for FY2024. The balance was derived from other non-banking subsidiaries.
“Barring any unforeseen circumstances, the Group expects to have sufficient buffers to maintain its dividend policy for the 2025 financial year and the immediate subsequent years,” the company stated.
