Lagos, Nigeria – Following the recent directive from the Central Bank of Nigeria (CBN) on enhanced prudential measures for banks operating under regulatory forbearance, FCMB Group Plc (“FCMB Group”) wishes to reassure its investors, analysts, and stakeholders of its strong commitment to regulatory compliance, prudent capital management, and long-term financial soundness.

FCMB Group’s Nigerian Banking Subsidiary currently has loans under CBN forbearance (credit exposures to 3 entities and 2 obligors) amounting to ₦207.6 billion as at 31st May 2025 (down from ₦358.8 billion as at September 30th, 2024). These are currently classified as Stage 2 loans. The Bank has made provisions for these loans over the last few years, and intensified resolution efforts have led to over 60% reduction in its credit forbearance exposures. Once these loans exit the CBN forbearance regime, we anticipate that this would lead to an initial spike in Stage 3 loans to ~11.5% of the total loan book which would decline below 10% by the end of the financial year, based on anticipated loan book growth.

The Bank has one (1) additional obligor (classified as a Stage 1 loan since drawdown to date) on the CBN forbearance for Single Obligor Limit (SOL). This Obligor will be brought within SOL limit by September 30th, 2025, following the conversion to equity of a recently concluded ₦23.1 billion Convertible Loan and audited nine (9) months projected retained earnings. The Group has already received CBN approval for the capital verification of the Convertible Loan and we are currently processing the other regulatory approvals required. We intend to conclude this process, including downstreaming the capital proceeds to the Bank, by the end of July 2025. This would effectively take the Share Capital and Share Premium of the Bank to ~₦267 billion. Capital Adequacy will remain above the regulatory minimum of 15% for international banks post forbearance, reinforced with the addition of the converted equity by July 2025 and the planned audit of nine (9) months retained earnings.

Our Nigerian Banking Subsidiary contributed 46% of 2024 dividend paid to shareholders (the balance coming from other non-bank subsidiaries). Barring any unforeseen circumstances, the Group expects to have sufficient buffers to maintain its dividend policy for the financial year 2025 and the immediate subsequent years.

We appreciate the continued trust and confidence of our customers, investors and stakeholders and we will continue to give regular and timely updates as may be required.

FOR: FCMB GROUP
FUNMI ADEBIBU
Company Secretary