FCMB Group Plc has reported a strong financial performance for the first half of 2025, posting an after-tax profit of N73.42 billion, a 23% increase from N59.48 billion recorded in the same period in 2024.
According to the group’s second-quarter financials, gross earnings rose to N529.2 billion, representing a 41 percent year-over-year increase, largely driven by a surge in interest and discount income, which grew by 70 percent to N458.4 billion.
This significant rise was attributed to a combination of higher benchmark interest rates and an expanded loan portfolio, allowing FCMB to boost interest income while maintaining positive asset yield spreads.
Net interest income nearly doubled to N207.4 billion from N106.2 billion a year earlier, indicating improved net margins despite a 54 percent rise in interest expenses to N251 billion.
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This performance suggests the bank managed to reprice its assets more efficiently than its liabilities, benefitting from Nigeria’s interest rate environment.
Fee and commission income also contributed to revenue growth, climbing 31 percent to N47.4 billion, reflecting stronger digital and transaction banking volumes, as well as increased advisory and asset management activities.
However, net trading income declined by 29 percent to N22.2 billion, compared to N31.4 billion in the prior year. The decline was largely due to lower revaluation gains and reduced market volatility compared to the previous period, when FX gains significantly boosted earnings.
Despite the revenue growth, the Group saw a rise in impairment charges. Net impairment losses on financial instruments rose to N36.2 billion from N31.3 billion, suggesting the bank is proactively strengthening its loan loss buffers amid lingering macroeconomic uncertainty.
This prudent approach to credit risk management allowed FCMB to continue growing its loan book, with customer loans rising slightly to N2.38 trillion from N2.36 trillion at year-end 2024.
Operating expenses increased across the board. Personnel costs rose 34 percent to N48.3 billion, while general and administrative expenses surged by 59 percent to N57.2 billion.
These increases reflect inflationary pressures, currency effects, and continued investments in technology infrastructure. Nonetheless, the bank maintained a strong operating margin, with profit before tax rising 23 percent to N79.1 billion.
FCMB’s balance sheet remains resilient, with total assets expanding to N7.54 trillion from N7.05 trillion in December 2024. The growth was supported by an increase in investment securities, which rose to N1.4 trillion, and a modest increase in customer deposits, which climbed 5.6 percent to N4.54 trillion. The Group also bolstered its liquidity position with a notable increase in cash and cash equivalents, which more than doubled to N1.53 trillion.
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Shareholders’ funds grew to N747.4 billion, up from N688.9 billion at the end of 2024, supported by retained earnings and gains on debt instruments held at fair value through other comprehensive income.
The Group declared a dividend of N21.78 billion during the period. Earnings per share stood at N3.70, slightly lower than N6.00 in the prior year, due to a higher share count and the impact of Additional Tier 1 capital deductions.
