FCMB Group Plc has announced its unaudited financial results for the first half of 2025, reporting a profit before tax (PBT) of ₦79.3 billion, marking a significant 23% year-on-year increase. This growth was primarily driven by improved net interest income and higher asset yields across the group's operations.

Strong Revenue Growth and Digital Expansion

The financial institution recorded gross revenue of ₦529.2 billion for the period, representing a 41.3% increase compared to the ₦374.5 billion reported in the same period of 2024. This impressive performance was largely supported by a 70.3% growth in interest income, although non-interest income declined by 35.1% due to a ₦36.6 billion reduction in currency revaluation gains compared to the previous year.

Net interest income nearly doubled, rising from ₦106.2 billion in H1 2024 to ₦207.4 billion by June 2025. The yield on earning assets improved to 20.2%, resulting in a net interest margin of 9.1%, up from 6.3% in the 2024 financial year.

Particularly noteworthy was the strong performance of the Group's digital business, which encompasses payments, lending, and wealth services. Digital revenues surged by 60% year-on-year, increasing from ₦46 billion in June 2024 to ₦73.6 billion in June 2025, now accounting for 13.9% of total earnings.

Operational Efficiency Despite Rising Costs

While operating expenses rose by 46.1% to ₦153.2 billion due to higher personnel costs, regulatory expenses, technology investments, and general inflationary pressures, the Group still managed to improve its cost-to-income ratio to 57% at the end of June 2025, compared to 59.9% recorded at the end of 2024.

Net impairment losses on financial assets grew significantly to ₦36.2 billion on a quarterly basis, following the banking subsidiary's exit from the Central Bank of Nigeria's loan forbearance programme. This led to an increase in the cost of risk to 2.8%, up from 1.8% in the 2024 financial year.

After tax, profit increased by 23% year-on-year, closing at ₦73.4 billion for the period under review.

Business Segment Performance

Each business division contributed to the overall performance, with Consumer Finance reporting a profit before tax growth of 54.5%, Banking Group recording a 41.3% increase, and Investment Management achieving 10% growth. The Investment Banking segment, however, experienced a 48.9% decline due to an exceptional one-time gain from a divestment in the previous year.

In terms of contribution to the Group's PBT, the Banking Group accounted for 82%, Consumer Finance for 11.6%, Investment Management for 4.8%, and Investment Banking for 1.4%.

Balance Sheet Strengthening

The Group's balance sheet showed notable improvement, with total assets increasing by 6.9% to ₦7.54 trillion, up from ₦7.05 trillion as of December 2024. Loans and advances grew modestly by 1.1% to ₦2.38 trillion, while customer deposits rose by 5.6% to ₦4.55 trillion.

This growth was supported by a stronger mix of low-cost deposits, which now account for 69.3% of total deposits, up from 57.5% at year-end 2024. Assets under management increased by 15.5%, reaching ₦1.58 trillion, compared to ₦1.37 trillion in December 2024.

FCMB's investment banking business recorded a significant increase in capital raised for its clients, growing by over 600% year-on-year to ₦2.97 trillion.

Capital Raise and Future Outlook

Following its ₦144.6 billion public capital raise in 2024, FCMB confirmed that the Central Bank of Nigeria has completed verification of the second phase of the programme—a ₦22.5 billion mandatory convertible note expected to increase the number of issued shares to approximately 42.8 billion.

Subsequent phases of the capital programme are ongoing and aim to ensure First City Monument Bank meets the new minimum capital requirement to retain its international banking license.

The Group's management expressed confidence in sustaining this positive trend and exceeding its full-year net interest margin guidance. FCMB Group remains focused on improving operational efficiency, expanding its digital and retail business, and continuing its strong earnings momentum through the second half of the year.

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