FCMB Group Plc has announced its unaudited financial results for the first half of 2025, reporting a ₦79.3 billion profit before tax (PBT), a 23% year-on-year increase.
This performance was largely driven by robust net interest income, higher asset yields, and a surge in digital revenue streams.
Strong Top-Line Growth Despite Currency Revaluation Impact
Gross revenue for the six-month period ended June 30, 2025, rose to ₦529.2 billion, up 41.3% from ₦374.5 billion in H1 2024. This growth was primarily fueled by a 70.3% increase in interest income.
However, non-interest income declined by 35.1%, due to a sharp reduction in currency revaluation gains, ₦36.6 billion lower than the previous year.
Net interest income almost doubled year-on-year, reaching ₦207.4 billion, compared to ₦106.2 billion in H1 2024.
The yield on earning assets improved to 20.2%, while net interest margin (NIM) rose to 9.1%, up from 6.3% in FY 2024.
Digital Business Expansion and Revenue Diversification
FCMB’s digital operations, encompassing payments, lending, and wealth management, continued their upward trajectory. Digital revenues grew by 60%, rising from ₦46 billion in H1 2024 to ₦73.6 billion in H1 2025. Digital services now represent 13.9% of total earnings, highlighting the Group’s successful shift toward tech-enabled financial solutions.
Cost Management and Efficiency Gains
Operating expenses increased by 46.1% to ₦153.2 billion, largely due to higher personnel expenses, regulatory fees, and tech-related costs amid persistent inflation. Nonetheless, FCMB improved its cost-to-income ratio to 57%, better than the 59.9% reported in FY 2024.
Net impairment losses on financial assets rose to ₦36.2 billion, reflecting the bank’s exit from the Central Bank of Nigeria’s loan forbearance program. As a result, the cost of risk increased to 2.8%, up from 1.8% in the previous year.
Segment Performance: Consumer Finance Leads Growth
Each of the Group’s four business segments contributed to overall performance:
- Consumer Finance: PBT up 5%
- Banking Group: PBT up 3%
- Investment Management: PBT up 10%
- Investment Banking: PBT down 9%, due to a one-off divestment gain in 2024
In terms of contribution to Group PBT:
- Banking Group: 82%
- Consumer Finance: 6%
- Investment Management: 8%
- Investment Banking: 4%
After-tax profit stood at ₦73.4 billion, up 23% year-on-year.
Balance Sheet Growth and Capital Efficiency
FCMB’s balance sheet continued to strengthen:
- Total assets: ₦54 trillion, up 6.9% from ₦7.05 trillion as of December 2024
- Loans and advances: ₦38 trillion, up 1.1%, despite loan write-offs and paydowns
- Customer deposits: ₦55 trillion, up 5.6%, driven by a shift to low-cost deposits, now 69.3% of the total (vs 57.5% in FY 2024)
- Assets under management: ₦58 trillion, up 15.5% from ₦1.37 trillion
Capital Raise and Regulatory Compliance
Following its ₦144.6 billion capital raise in 2024, the Central Bank of Nigeria has verified the second phase of FCMB’s programme, which includes a ₦22.5 billion mandatory convertible note. This will increase the Group’s share count to approximately 42.8 billion shares.
The ongoing capital programme aims to meet the CBN’s new minimum capital requirement for international banking licenses.
Future Outlook: Focus on Digital, Retail, and Profitability
Management expressed confidence in the Group’s ability to sustain its earnings momentum, optimize costs, and exceed full-year net interest margin (NIM) guidance. The NIM improved from 7.9% in Q1 2025 to 10.1% in Q2 2025, driven by better capital deployment and funding mix.
FCMB Group remains committed to expanding its digital and retail banking footprint, enhancing operational efficiency, and maintaining its strong performance through the second half of 2025.
