Update shared on07 Aug 2025
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. With a diversified business mix, ongoing capital raise to meet regulatory requirements, and rapid growth in digital income, FCMB is well-positioned for sustainable long-term value creation.
Financial Highlights: H1 2025
Metric H1 2025 YoY Growth
Gross Revenue ₦529.2B +41.3%
Net Interest Income ₦207.4B +95.3%
Profit Before Tax (PBT) ₦79.3B +23.0%
Profit After Tax (PAT) ₦73.4B +23.0%
Operating Expenses ₦153.2B +46.1%
Digital Revenue ₦73.6B +60.0%
Net Interest Margin (NIM) 9.1% ↑ from 6.3%
Total Assets ₦7.54T +6.9% (YTD)
Customer Deposits ₦4.55T +5.6% (YTD)
Loans & Advances ₦2.38T +1.1% (YTD)
Assets Under Management ₦1.58T +15.5%
Shares Outstanding (Proj.) 42.8B ↑ via capital raise
Key Strengths
Strong Core Banking Performance
FCMB’s PBT of ₦79.3B was driven largely by a 95.3% growth in net interest income, showing significant improvement in asset yields and NIM (9.1%). This was achieved through a favorable shift in deposit mix (low-cost deposits now 69.3%) and stronger asset pricing.
Rapid Digital Transformation
Digital income surged 60% YoY, contributing 13.9% of total earnings. Growth in payments, lending, and wealth-tech platforms indicate sustainable non-interest income diversification.
Improving Cost Discipline
Despite inflationary pressures, cost-to-income ratio improved to 57% (vs. 59.9% in FY 2024). Operational leverage and balance sheet efficiency contributed to this improvement.
Diversified Business Segments
- Banking Group: 82% of PBT, +41.3% YoY
- Consumer Finance: 11.6% of PBT, +54.5% YoY
- Investment Management: 4.8% of PBT, +10% YoY
- Investment Banking: 1.4% of PBT (declined due to 2024 one-time gain)
Key Weaknesses & Risks
Decline in Non-Interest Income
Non-interest income dropped 35.1% YoY, mainly due to a sharp ₦36.6B fall in currency revaluation gains. While recurring revenue streams are improving, this reveals FCMB’s prior reliance on FX windfalls.
Rising Impairments
Net impairment losses grew to ₦36.2B following the exit from the CBN’s forbearance programme, pushing cost of risk to 2.8% (from 1.8%). Loan quality pressures could persist.
Capital Dilution Risk
The issuance of N22.5B in mandatory convertible notes and ongoing capital raise may result in shareholder dilution. However, this is essential to meet the new CBN minimum capital requirement for international banks.
Disclaimer
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