FCMB Group Reports N79.3bn Half-Year Profit in 2025, Driven by Strong Digital Growth and Higher Interest Income

FCMB Group Plc has reported a profit before tax of N79.3 billion for the first half of 2025, marking a 23% year-on-year increase, according to its unaudited financial results. This performance was largely driven by improved net interest income and higher yields on earning assets. Gross revenue rose by 41.3% to N529.2 billion, fueled by a sharp 70.3% increase in interest income. However, non-interest income dipped 35.1% due to a drop in currency revaluation gains.

The Group’s net interest income nearly doubled to N207.4 billion from N106.2 billion in the same period last year. Net interest margin improved to 9.1%, up from 6.3%, reflecting stronger asset yields and a better deposit mix. Digital services were a key growth driver, with digital revenue rising 60% year-on-year to N73.6 billion. This segment now contributes nearly 14% of total earnings, highlighting the Group’s ongoing digital transformation.

On the cost side, operating expenses rose by 46.1% to N153.2 billion, driven by higher personnel, regulatory, and technology costs amid general inflationary pressures. Still, FCMB managed to improve its cost-to-income ratio to 57%, down from 59.9% the previous year. The Group also recorded net impairment losses of N36.2 billion as a result of exiting the CBN’s loan forbearance programme, increasing its cost of risk to 2.8%.

Each business division played a role in the Group’s profitability. The Banking Group contributed 82% to the Group’s PBT, followed by Consumer Finance at 11.6%, Investment Management at 4.8%, and Investment Banking at 1.4%. While most divisions posted growth, Investment Banking saw a 48.9% decline in PBT due to a one-time gain in the previous year. After-tax profit stood at N73.4 billion, up 23% year-on-year.

FCMB’s balance sheet showed notable growth, with total assets rising 6.9% to N7.54 trillion. Loans and advances inched up by 1.1% to N2.38 trillion, while customer deposits increased by 5.6% to N4.55 trillion, largely due to a shift towards low-cost deposits. Assets under management rose 15.5% to N1.58 trillion. The Group also benefited from a public capital raise of N144.6 billion in 2024, with the CBN verifying its N22.5 billion convertible note in the second phase. FCMB is on track to meet the capital requirements to retain its international banking license and aims to sustain its strong earnings trajectory for the rest of the year.

Source: The sun