FCMB Group reports N79.3b half-year profit before tax in unaudited results

August 21, 2025 by Our Reporter

FCMB Group Plc has  reported a N79.3 billion profit before tax in its unaudited financial results for the half-year ended June 30. This represents 23 per cent year-on-year increase, driven primarily by improved net interest income and asset yields.

Gross revenue rose to N529.2 billion (41.3 per cent year-on-year increase) from N374.5 billion in 2024, supported mainly by a 70.3 per cent growth in interest income.

However, non-interest income declined by 35.1 per cent due to a N36.6 billion drop in currency revaluation gains compared to last year.

Net interest income almost doubled, rising from N106.2 billion in the previous year to N207.4 billion by June. The yield on earning assets improved to 20.2 per cent, leading to a net interest margin of 9.1 per cent, up from 6.3 per cent in the 2024 financial year.

The group’s digital business—payments, lending, and wealth services—grew. Digital revenue increased by 60 per cent year-on-year, rising from N46 billion in June 2024 to N73.6 billion this June. Digital services account for 13.9 per cent of total earnings.

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Operating expenses rose by 46.1 per cent to N153.2 billion. The increase was due to higher personnel costs, regulatory expenses, technology costs, and general inflationary pressures. Despite this, cost-to-income ratio improved to 57 per cent at the end of June 2025, compared to 59.9 per cent recorded at the end of 2024.

Net impairment losses on financial assets grew to N36.2 billion on a quarterly basis, following the group’s banking subsidiary exit from Central Bank ’s loan forbearance programme. This led to a rise in the cost of risk to 2.8 per cent, up from 1.8 per cent in 2024.

After tax, profit increased by 23 per cent year-on-year, closing at N73.4 billion.

Each business division contributed to performance. Consumer Finance reported a profit before tax growth of 54.5 per cent, Banking Group reported a profit before tax of 41.3 per cent, and Investment Management recorded a 10 per cent growth. Investment Banking recorded a 48.9 per cent decline due to a one-time gain from a divestment in the previous year. In terms of contribution to PBT, Banking Group accounted for 82 per cent, Consumer Finance, 11.6 per cent, Investment Management, 4.8 per cent, and Investment Banking, 1.4 per cent.

The group’s balance sheet improved. Total assets rose by 6.9 per cent to N7.54 trillion, up from N7.05 trillion as of December 2024. Loans and advances grew by 1.1 per cent to N2.38 trillion, impacted by currency revaluation, loan write-offs and paydowns, while customer deposits rose by 5.6 per cent to N4.55 trillion.