GCR Ratings (GCR) has upgraded First City Monument Bank Limited’s (FCMB) national-scale long- and short-term issuer ratings to A(NG) and A1(NG) from A-(NG) and A2(NG), respectively, while maintaining a Stable outlook.
According to the rating note, FCMB is considered the core operating entity within FCMB Group Plc; as such, the national-scale issuer ratings on the bank reflect the overall strengths and weaknesses of the group.
GCR stated that the ratings upgrade reflects a notable improvement in FCMB’s capital adequacy, supported by a recent capital injection and strong internal earnings generation. The bank’s rating also balances its strong competitive position and adequate funding and liquidity against an evolving risk profile.
The rating agency noted that the group’s competitive position is a positive factor for the ratings, underpinned by its established track record and diversified business operations.
Specifically, FCMB remains a top tier-two bank in Nigeria, accounting for a market share of approximately 4.0 percent of the Nigerian banking industry’s total assets as of December 31, 2025. The bank’s international presence, anchored by its UK operations, continues to support growth through credit facilities to Nigerian corporates and trade finance-related transactions.
Ratings analysts added that FCMB actively leverages technology to drive operational efficiency in line with its digital transformation and borderless banking strategy. Furthermore, the group’s growing footprint in the non-bank financial services segment enhances earnings diversification and competitiveness in Nigeria’s increasingly dynamic banking landscape.
Looking ahead, GCR believes the group’s geographical expansion plans could further bolster its competitive positioning and support earnings growth.
The group’s strengthened capitalization stands out as a major ratings positive, largely supported by various capital-raising initiatives executed to meet the regulatory capital requirements for international banks.
FCMB’s shareholders’ funds increased to NGN 1.1 trillion as of March 31, 2026, up from NGN 836.4 billion in December 2025 and NGN 688.9 billion in 2024. This capital growth resulted in a stronger GCR core capital ratio of 25.2 percent, compared to 15.4 percent in 2025. Over the next 12 to 18 months, ratings analysts expect the GCR core capital ratio to settle between 19 percent and 22 percent, driven by steady earnings retention and a conservative growth strategy for the loan book.