First City Monument Bank (FCMB) has strengthened its capital base with the conversion of a ₦23.11 billion mandatory convertible loan, including accrued interest, into equity. The move resulted in the listing of 3.16 billion additional shares on the Nigerian Exchange (NGX).
According to NGX Regulation, the shares, listed at 50 kobo each, raised FCMB’s issued and fully paid-up shares from 39.6 billion units to 42.77 billion units. Following the listing, the bank’s market capitalization rose by ₦33.09 billion to ₦446.96 billion, based on a share price of ₦10.45.
The conversion, executed at ₦7.30 per share, is part of FCMB’s broader recapitalization plan to meet the Central Bank of Nigeria’s (CBN) capital adequacy requirements. The measure eases debt obligations, enhances liquidity, and strengthens investor confidence.
Back in June, FCMB disclosed its plans to exit the CBN’s regulatory forbearance list ahead of the March 2026 recapitalization deadline. The loan conversion was identified as a key step in ensuring compliance with the CBN’s single obligor lending limits.
In addition, FCMB has been reducing its loans under the forbearance window, cutting balances from ₦538.8 billion in September 2024 to ₦207.6 billion by May 2025, a drop of more than 60%. Although this reclassification has temporarily lifted its non-performing loan ratio, the bank projects it will fall below 10% by year-end.
These measures, combined with retained earnings, are expected to keep FCMB’s capital adequacy ratio above the 15% benchmark for international banks.
Market performance has reflected investor confidence. Following the loan conversion and listing, FCMB’s share price rose from ₦10.45 on September 23 to ₦10.90 by September 26, gaining 1.87% in the week. Year-to-date, the stock is up 14%, despite earlier volatility.
Analysts see the development as a significant milestone in FCMB’s recapitalization journey, positioning the bank for long-term growth and stability.
