FCMB Group Plc H1 2025: Robust Growth in Core Banking Operations Despite Rising Costs

Published
31 Jan 25
Updated
07 Aug 25
WaneInvestmentHouse's Fair Value
₦10.31
8.6% overvalued intrinsic discount
07 Aug
₦11.20
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1Y
46.4%
7D
-5.5%

Author's Valuation

₦10.3

8.6% overvalued intrinsic discount

WaneInvestmentHouse's Fair Value

Shared on07 Aug 25

FCMB Group Plc has emerged as one of the most dynamic financial institutions in Nigeria’s mid-tier banking space, delivering robust revenue growth, expanding margins, and digital-led transformation. In H1 2025, the Group reported strong top-line momentum (+41.3% YoY), efficient balance sheet management, and resilient profitability despite macroeconomic headwinds.

Shared on30 Jul 25

Subject: FCMB Delivers Strong Earnings Surge in H1 2025 Despite Margin Pressure FCMB Group Plc posted an impressive 41.3% YoY growth in gross earnings to N529.2bn in H1 2025, underpinned by a robust 70.3% increase in interest and discount income to N458.4bn. This stellar top-line performance signals strong momentum in core banking operations, supported by balance sheet growth and improving asset yields.

Shared on30 Jul 25

FCMB Group has projected a profit after tax of N36.6bn for the second quarter ending June 30, 2025. The group’s earnings forecast shows that gross earnings are expected to reach N239.4bn, with interest income projected at N209.1bn.

Shared on24 Jul 25

Investment Thesis: FCMB’s Strategic Real Estate Play Unlocks Long-Term Value Thesis Summary: FCMB’s strategic partnership with TotalEnergies Staff Housing Cooperative (TEHC) to finance and deliver the Louisville Phase 1 residential tower in Eko Atlantic City positions the bank to benefit from Nigeria’s expanding real estate and urban development opportunities. While short-term earnings contribution may be modest, this bold move enhances FCMB’s brand, aligns with sustainable development goals, and could unlock future fee income, mortgage growth, and real estate-linked asset creation.

Shared on07 Mar 25
Fair value Decreased 6.27%

WaneInvestmentHouse has decreased revenue growth from 28.5% to 10.0%, increased profit margin from 35.8% to 42.0% and increased future PE multiple from 1.7x to 3.0x.