GCR Upgrades FCMB Group’s Ratings to A-(NG)

GCR Ratings have upgraded FCMB Group Plc national scale long term issuer rating to A-(NG) from BBB+(NG), citing stronger capital adequacy, improved earnings generation and a solid funding and liquidity position.

The rating agency also affirmed FCMB Group’s national scale short term issuer rating at A2(NG) and maintained a Stable Outlook, reflecting expectations that the group’s strengthened financial profile will be sustained over the next 12 to 18 months.

GCR also upgraded the national scale issue ratings on FCMB Group’s Series 1 N20.7 billion and Series 2 N26.0 billion Additional Tier 1 Subordinated Bonds to BBB(NG) from BBB-(NG), while retaining a Stable Outlook on both instruments.

According to the rating agency, the upgrade was driven by the improved fundamentals of the group’s flagship subsidiary, First City Monument Bank Limited. “The ratings upgrade reflects the improvement in FCMB’s capital adequacy, supported by the additional capital injection and good internal earnings generation,” GCR stated.

It added that the rating also reflects the bank’s strong competitive position, adequate funding and liquidity profile, while taking into account its evolving risk profile.

Despite the upgrade, GCR noted that FCMB Group’s issuer rating remains one notch below that of the consolidated banking group because it operates as a non operating holding company that depends on dividends and cash flows from its banking and non banking subsidiaries.

According to the agency, this creates structural subordination, as those cash flows could be affected by regulatory intervention during periods of financial stress.

GCR noted that FCMB Group has continued to strengthen its franchise beyond traditional banking, with seven direct subsidiaries and three indirect subsidiaries as of December 31, 2025, spanning banking, consumer finance, investment management and investment banking.

It added that the group intends to deepen its presence across Africa while leveraging technology to improve operational efficiency and drive business growth.

On the subordinated bonds, GCR said the instruments were issued under the group’s N300 billion Debt Issuance Programme, through which FCMB raised N46.7 billion in 2023.

The agency further disclosed that the bank’s Common Equity Tier 1 ratio improved from 14.3 per cent at the end of December 2025 to 22.3 per cent as of March 31, 2026 following a successful capital injection, significantly strengthening its capital buffers.

Looking ahead, GCR said the Stable Outlook reflects expectations that the group’s core capital ratio will remain between 19 per cent and 22 per cent over the next 12 to 18 months, supported by conservative loan growth, sustained loan recovery efforts and stable funding driven by strong deposit mobilisation.