FCMB Group posts ₦79.3bn Profit Before Tax in first half of 2025
FCMB Group Plc has announced a profit before tax of ₦79.3 billion for the first half of 2025, reflecting a 23% increase compared to the same period in 2024.
The performance was driven by strong growth in net interest income and improved yields on earning assets.
Gross revenue rose significantly by 41.3% year-on-year to ₦529.2 billion, up from ₦374.5 billion in H1 2024.
This surge was largely fuelled by a 70.3% increase in interest income, though it was partially offset by a 35.1% decline in non-interest income, attributed to a ₦36.6 billion reduction in foreign exchange revaluation gains compared to the previous year.
Net interest income nearly doubled, climbing from ₦106.2 billion to ₦207.4 billion. The Group recorded a net interest margin of 9.1%, up from 6.3% in 2024, supported by a rise in asset yields to 20.2%.
FCMB’s digital transformation efforts continued to yield results. Digital revenues grew by 60% year-on-year, increasing from ₦46 billion to ₦73.6 billion and now contribute 13.9% to overall earnings.
This growth was driven by expansion in digital payments, consumer lending, and wealth management services.
Operating expenses rose by 46.1% to ₦153.2 billion, reflecting higher personnel costs, regulatory charges, technology investments, and general inflation. Despite the spike, the Group improved its cost-to-income ratio to 57% as of June 2025, from 59.9% in 2024.
Net impairment losses on financial assets rose to ₦36.2 billion, following the exit of its banking subsidiary from the Central Bank’s loan forbearance programme. As a result, cost of risk increased to 2.8%, up from 1.8% a year earlier.
Profit after tax also rose by 23%, reaching ₦73.4 billion for the six-month period.
Performance across business divisions varied. The Consumer Finance arm recorded a 54.5% growth in profit before tax, while the Banking Group posted a 41.3% increase. Investment Management grew by 10%, whereas Investment Banking saw a 48.9% decline, attributed to a one-off divestment gain recorded in 2024.
The Banking Group contributed the largest share to Group PBT at 82%, followed by Consumer Finance (11.6%), Investment Management (4.8%), and Investment Banking (1.4%).
The Group’s balance sheet remained strong. Total assets rose by 6.9% to ₦7.54 trillion from ₦7.05 trillion in December 2024. Customer deposits climbed by 5.6% to ₦4.55 trillion, aided by a favourable mix of low-cost deposits, which now make up 69.3% of total deposits, up from 57.5% at year-end 2024. Loans and advances inched up 1.1% to ₦2.38 trillion, as currency revaluation and repayments impacted net growth.
Assets under management grew by 15.5%, reaching ₦1.58 trillion, while capital raised through investment banking services surged by over 600% to ₦2.97 trillion.
FCMB also reported improved funding efficiency, with its net interest margin climbing from 7.9% in Q1 2025 to 10.1% in Q2. Management is optimistic about sustaining this trajectory and surpassing full-year margin targets.
Following its ₦144.6 billion capital raise in 2024, the Group confirmed that the Central Bank of Nigeria has completed verification of a ₦22.5 billion mandatory convertible note, part of the second phase of the recapitalisation programme. Travel guides to Nigeria
This will increase the total number of shares to approximately 42.8 billion. The recapitalisation process continues, aimed at meeting the regulator’s minimum capital threshold to maintain international banking operations.
Looking ahead, FCMB Group says it remains focused on enhancing operational efficiency, deepening digital and retail business growth, and sustaining its strong earnings momentum into the second half of the year.
