Abiodun JIMOH
FCMB Group Plc has posted a profit before tax of ₦79.3 billion in its unaudited half-year results for the period ended June 30, 2025, representing a 23 percent increase year-on-year. The performance was driven by strong growth in net interest income, rising digital revenue, and an improved balance sheet structure.
The Group’s gross revenue rose by 41.3 percent to ₦529.2 billion, compared to ₦374.5 billion recorded in the same period of 2024. This was primarily supported by a 70.3 percent surge in interest income, reflecting improved yields on earning assets and strategic balance sheet deployment. Net interest income nearly doubled from ₦106.2 billion to ₦207.4 billion, as the yield on earning assets rose to 20.2 percent and net interest margin improved to 9.1 percent, up from 6.3 percent a year earlier.
Despite the strong top-line performance, non-interest income declined by 35.1 percent due to a ₦36.6 billion drop in currency revaluation gains relative to the previous year. The Group’s digital business, comprising payments, lending, and wealth services, delivered strong growth during the period. Digital revenue increased by 60 percent year-on-year to ₦73.6 billion from ₦46 billion in June 2024, and now accounts for nearly 14 percent of total Group earnings.
Operating expenses for the period increased by 46.1 percent to ₦153.2 billion, largely due to higher personnel costs, regulatory charges, inflation-related costs, and continued investment in technology. However, the Group’s cost-to-income ratio improved to 57 percent from 59.9 percent at the end of 2024, reflecting continued efficiency efforts.
The Group also reported a significant increase in net impairment losses on financial assets, which rose to ₦36.2 billion after its banking subsidiary exited the Central Bank of Nigeria’s loan forbearance programme. This raised the cost of risk to 2.8 percent from 1.8 percent in the previous financial year.
Profit after tax grew by 23 percent year-on-year to ₦73.4 billion, as all major business segments contributed to the overall result. The Consumer Finance division reported a 54.5 percent growth in profit before tax, while the Banking Group posted a 41.3 percent increase. Investment Management delivered a 10 percent growth in profit before tax. However, the Investment Banking segment saw a 48.9 percent decline due to the absence of a one-off gain recorded in 2024 from a divestment transaction.
In terms of segment contribution to Group profit before tax, the Banking Group remained the dominant contributor, followed by Consumer Finance, Investment Management, and Investment Banking. FCMB Group’s total assets increased by 6.9 percent to ₦7.54 trillion as at June 2025, up from ₦7.05 trillion in December 2024. Customer deposits rose by 5.6 percent to ₦4.55 trillion, supported by a favourable deposit mix, with low-cost deposits rising to 69.3 percent of total deposits, compared to 57.5 percent at year-end 2024.
Loans and advances to customers grew marginally by 1.1 percent to ₦2.38 trillion, impacted by currency revaluation, loan write-offs, and large-ticket repayments. Assets under management climbed by 15.5 percent to ₦1.58 trillion, up from ₦1.37 trillion in December 2024. Meanwhile, the Group’s investment banking operations facilitated ₦2.97 trillion in capital raising for clients, representing a more than 600 percent year-on-year increase in capital market transactions.
Improved balance sheet efficiency was also noted in the report. A better deposit mix and deployment of recently raised capital helped reduce funding costs. Net interest margin rose from 7.9 percent in the first quarter to 10.1 percent in the second quarter, leading to the half-year average of 9.1 percent. The Group expressed optimism that it would surpass its full-year margin guidance.
On capital adequacy, FCMB confirmed that the Central Bank of Nigeria had verified the second phase of its capital raising programme, a ₦22.5 billion mandatory convertible note, which will increase its issued share capital to approximately 42.8 billion shares. This follows the ₦144.6 billion public capital raise completed in 2024. Further phases of the programme are in motion to ensure First City Monument Bank meets the new regulatory capital requirement to retain its international banking license.
Management reaffirmed its commitment to building a resilient, innovative, and customer-focused financial institution. It plans to continue driving operational efficiency, expanding its retail and digital banking businesses, and sustaining its earnings momentum through the rest of 2025. Group CEO Ladi Balogun noted that the strong performance reflects FCMB’s ability to navigate a volatile macroeconomic environment while delivering lasting value to stakeholders. He said the Group remains focused on responsible growth, prudent risk management, and sustainable impact across Nigeria’s financial landscape.
