FCMB Group Plc more than doubled its after–tax profit for the year ended December 31, 2025, as robust growth in interest income, improved fee earnings, and stronger operating cash flows boosted the firm’s bottom line.
According to the full-year unaudited financial statement released by the Nigerian Exchange Group, its after-tax profit rose to N176.9 billion, a 141 percent increase from N73.3 billion in the previous year.
The lender’s gross earnings rose 42 percent to N1.13 trillion, up from N794.4 billion in 2024, reflecting higher yields on loans and investment securities amid Nigeria’s elevated interest rate environment.
Interest and discount income surged to N1.00 trillion from N621.8 billion, while interest expense increased at a slower pace to N499.2 billion from N396.5 billion, lifting net interest income to N502.9 billion, more than double the N225.3 billion recorded a year earlier.
This translated into a significant improvement in net interest margin, as FCMB benefitted from the repricing of risk assets and a growing investment securities portfolio, which expanded to N2.06 trillion from N1.19 trillion.
Non-interest revenue also supported earnings performance. Net fee and commission income rose 26 percent to N73.8 billion from N58.8 billion, buoyed by higher transaction volumes and digital banking activity. However, trading income declined to N39.2 billion from N53.8 billion, while other gains swung to a loss of N11.6 billion from a gain of N39.6 billion in 2024, reflecting foreign exchange revaluation pressures and lower one-off income.
Operating expenses increased in line with inflationary pressures and business expansion. Personnel costs rose to N106.0 billion from N79.3 billion, while general and administrative expenses climbed to N127.0 billion from N87.5 billion. Other operating expenses also rose to N68.7 billion from N48.3 billion.
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Despite the higher cost base, operating profit grew 78 percent to N200.2 billion from N112.1 billion, underscoring the strength of core earnings.
Impairment charges on financial assets more than doubled to N86.0 billion from N41.2 billion, reflecting a cautious stance amid macroeconomic uncertainties and credit risk in some sectors.
After accounting for tax expenses of N23.1 billion and a marginal minimum tax charge, profit for the year settled at N176.9 billion.
FCMB’s balance sheet remained solid, with total assets rising to N7.54 trillion from N7.05 trillion. Cash and cash equivalents increased significantly to N1.30 trillion from N795.4 billion, supported by strong operating cash generation.
Customer deposits grew modestly to N4.40 trillion from N4.30 trillion, while loans and advances stood at N2.29 trillion, slightly lower than the N2.36 trillion recorded in 2024, reflecting a more conservative lending approach in a high-rate environment.
Shareholders’ funds strengthened to N823.4 billion from N689.0 billion, driven by retained earnings growth and capital injections through share issues.
Key performance ratios showed marked improvement. Return on equity rose sharply by 20.6 percent , supported by higher profits, while the cost-to-income ratio improved as revenue growth outpaced operating expense increases. The strong rise in net interest income margin to 50.2 percent also boosted profitability metrics across the board.
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Cash flow from operating activities jumped nearly fourfold to N1.67 trillion from N420.4 billion in 2024, reflecting improved working capital management, higher interest receipts, and reduced pressure on deposits.
In recent reports, FCMB Group Plc has secured a national banking licence for its flagship banking subsidiary, First City Monument Bank, after completing a major capital raise, allowing the lender to continue domestic operations while it works toward meeting the N500bn capital threshold required for an international licence under Nigeria’s banking sector recapitalisation programme.
