Kayode Tokede 

FCMB Group Plc has announced its unaudited financial results for the half year (H1) ended June 30, 2025.

The Group reported a N79.3 billion profit before tax (PBT), representing a 23 per cent year-on-year increase, driven primarily by improved net interest income and asset yields.

Gross revenue for the period rose to N529.2 billion, reflecting a 41.3 per cent year-on-year increase from  N374.5 billion recorded in the H1  2024, supported mainly by a 70.3 per cent growth in interest income. However, non-interest income declined by 35.1 per cent due to a N36.6 billion drop in currency revaluation gains compared to last year.

Net interest income almost doubled, rising from N106.2 billion in the previous year to N207.4 billion by June 2025.

The yield on earning assets improved to 20.2 per cent, leading to a net interest margin of 9.1 per cent, up from 6.3 per cent in the 2024 financial year.

The Group’s digital business—payments, lending, and wealth services—grew strongly. Digital revenues increased by 60 per cent year-on-year, rising from N46 billion in June 2024 to N73.6 billion in June 2025.

Digital services now account for 13.9 per cent of total earnings. Operating expenses rose by 46.1 per cent to N153.2billion. The increase was due to higher personnel costs, regulatory expenses, technology costs, and general inflationary pressures.

Despite this, cost-to-income ratio improved to 57 per cent at the end of June 2025, compared to 59.9 per cent recorded at the end of 2024. Net impairment losses on financial assets grew significantly to N36.2 billion on a quarterly basis, following FCMB Group’s banking subsidiary exit from the Central Bank of Nigeria’s loan forbearance programme.

This led to a rise in the cost of risk to 2.8 per cent, up from 1.8 per cent in the 2024 financial year. After tax, profit increased by 23 per cent year-on-year, closing at N73.4 billion.

Each business division contributed to overall performance. Consumer Finance reported a profit before tax growth of 54.5 per cent, Banking Group reported a profit before tax growth of 41.3 per cent, and Investment Management recorded a 10 per cent growth. Investment Banking recorded a 48.9 per cent decline due to an exceptional one-time gain from a divestment in the previous year.

In terms of contribution to Group’s PBT, the Banking Group accounted for 82 per cent, Consumer Finance for 11.6 per cent, Investment Management for 4.8 per cent, and Investment Banking for 1.4 per cent. The Group’s balance sheet also showed improvement.

 Total assets increased by 6.9 per cent to N7.54 trillion, up from N7.05 trillion as of December 2024. Loans and advances grew modestly by 1.1 per cent to N2.38 trillion, impacted by currency revaluation, loan write-offs and concentrated paydowns, while customer deposits rose by 5.6 per cent to N4.55 trillion.

This growth was supported by a stronger mix of low-cost deposits, which now account for 69.3 per cent of total deposits, up from 57.5 per cent at year-end 2024. Assets under management increased by 15.5 per cent, reaching N1.58 trillion, compared to N1.37 trillion in December 2024. FCMB’s investment banking business, which includes advisory services and capital market transactions, recorded a significant increase in capital raised for its clients —growing by over 600 per cent year-on-year to N2.97 trillion.

The Group also reported improved balance sheet efficiency. A more favourable deposit mix and better deployment of recently raised capital helped reduce funding costs for the second consecutive quarter. As a result, the net interest margin rose from 7.9 per cent in the first quarter to 10.1 per cent in the second quarter of 2025, contributing to the 9.1 per cent margin for the H1 2025.

The management expressed confidence in sustaining this trend and exceeding its full-year NIM guidance. Following its N144.6 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 N22.5 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. 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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