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.
