FCMB Group grows H1 profit to N79.3bn as digital revenue, asset yields power strong performance
By Seun Ibiyemi
FCMB Group Plc has reported a robust financial performance for the half year (H1) ended June 30, 2025, with profit before tax (PBT) rising to N79.3 billion.
This represents a 23 per cent year-on-year increase from the N64.5 billion recorded in the corresponding period of 2024.
The Group sustained its earnings momentum despite facing inflationary pressures, higher regulatory costs, and rising impairments.
Revenue and profit momentum
The Group's gross revenue surged by 41.3 per cent to N529.2 billion, up from N374.5 billion in H1 2024. This growth was primarily fuelled by a 70.3 per cent surge in interest income, driven by improved asset yields and loan repricing.
Net interest income nearly doubled, reaching N207.4 billion from N106.2 billion a year earlier. The yield on earning assets climbed to 20.2 per cent, effectively boosting the net interest margin to 9.1 per cent, compared to 6.3 per cent in 2024.
However, the rise in profitability was partially tempered by a 35.1 per cent drop in non-interest income, mainly due to reduced foreign currency revaluation gains compared to the prior year.
Operating expenses increased by 46.1 per cent to N153.2 billion, reflecting inflation, higher personnel and technology costs, and regulatory charges.
Despite this, the cost-to-income ratio improved to 57 per cent, down from 59.9 per cent in 2024, as revenue growth outpaced the rise in expenses.
A significant increase in risk was noted as net impairment losses on financial assets surged to N36.2 billion, following the exit of the banking subsidiary from the CBN’s loan forbearance programme.
Consequently, the cost of risk increased to 2.8 per cent, up from 1.8 per cent in 2024, signalling a return to a more normalized credit risk environment.
Digital expansion and balance sheet strength
Digital transformation remained pivotal, with digital revenues growing by 60 per cent year-on-year, reaching N73.6 billion in H1 2025.
The Group’s digital platforms spanning payments, lending, and wealth management accounted for 13.9 per cent of total earnings, successfully deepening adoption across retail and SME segments.
The Group's total assets rose by 6.9 per cent to N7.54 trillion, demonstrating steady balance sheet growth. Customer deposits climbed 5.6 per cent to N4.55 trillion, with low-cost deposits rising to a strong 69.3 per cent of the total. Loans and advances saw a marginal increase of 1.1 per cent to N2.38 trillion, reflecting cautious asset creation.
Furthermore, Assets Under Management (AUM) expanded by 15.5 per cent to N1.58 trillion, supported by mutual funds and pension portfolio inflows.
FCMB confirmed that the CBN had verified the second phase of its recapitalisation programme, which includes a N22.5 billion mandatory convertible note.
This initiative will increase issued shares to approximately 42.8 billion, positioning the Group to meet the CBN’s new minimum capital requirement for international banks, following its N144.6 billion public capital raise in 2024.
Outlook and management commentary
The Group management expressed confidence in its ability to sustain the earnings momentum, highlighting the success of its digital expansion, improved asset yields, and strategic cost containment.
They noted that improved deposit mix and efficient deployment of new capital helped reduce funding costs for the second consecutive quarter, boosting the net interest margin to 10.1 per cent in Q2 2025, compared to 7.9 per cent in Q1.
Looking ahead, FCMB Group intends to deepen its retail and digital footprint while enhancing operational efficiency and credit risk management.
The focus for the second half of 2025 will be on consolidating capital, strengthening liquidity buffers, and sustaining profitability across all business segments. The Group's diversified earnings base and improving cost efficiency suggest it is well-positioned to navigate Nigeria’s evolving financial landscape and deliver long-term shareholder value.