FCMB Group posts 90% surge in half-year profit

FCMB Group announced a substantial 90.5% increase in net profit for the first six months of the year, a performance attributed to strategic top-line expansion and effective cost management. The bank holding company's latest accounts reveal gross earnings climbed to N676.2 billion from N529.2 billion, with interest and discount income contributing 88.8% of this growth. A key factor in the earnings boost was a reduction in major expenses, notably a drop in the cost-to-income ratio from 57% to 41.4% year-on-year.

The group's commercial banking division, FCMB Limited, remained the primary driver of performance, accounting for over three-quarters of the post-tax profit. Other divisions, including the consumer lending business Credit Direct, also proved profitable, contributing to the overall financial health of the institution. The bank successfully reduced its interest expense by 2.7%, or N6.8 billion, while simultaneously increasing interest and discount income by 31% due to an improved mix of low-cost deposits and a lower cost of funds. This resulted in a significant jump in net interest income from N207.4 billion to N356.3 billion.

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Our first-half performance demonstrates the strength of our recapitalised and diversified business model.

FCMB Group also pointed to its digital business, encompassing payments, lending, and wealth management, as a key contributor to turnover growth. Digital revenue reached N89.1 billion, adding 13.2% to gross earnings through increased volume. CEO Ladi Balogun expressed satisfaction with the "record profitability" achieved, emphasizing the strength of the "recapitalized and diversified business model." He noted that this performance was delivered "despite accelerating the normalisation of asset quality towards regulatory thresholds," underscoring a commitment to building a robust balance sheet for sustained long-term growth.

Despite the positive overall results, the institution faced some headwinds. Net trading income declined by 65.7% year-on-year, impacted by weaker trading in bonds and treasury bills. Furthermore, impairment losses accelerated to N85.9 billion from N36.2 billion, largely due to a 2,427.6% surge in provisions for other losses, excluding those on loans and advances. Balogun, however, assured stakeholders that the return on equity is projected to surpass 25% this year, a notable increase from the 21.1% recorded for the 2025 financial year.

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We delivered record profitability despite accelerating the normalisation of asset quality towards regulatory thresholds, reflecting our commitment to building a stronger balance sheet for long-term growth.