FCMB Group Plc has reported a sharp increase in profitability for the first half of 2026, posting a 99 per cent rise in profit before tax to N157.3 billion, driven by stronger lending income, expanding digital operations, improved funding efficiency and disciplined cost management.
According to the group’s unaudited financial results for the six months ended June 30, 2026, gross earnings climbed 27.8 per cent to N676.2 billion, compared with N529.2 billion recorded in the corresponding period of 2025.
The financial services group attributed the performance to a 31 per cent increase in interest income, supported by a 22 per cent expansion in earning assets to N5.98 trillion, reflecting sustained growth across its banking operations.
Net interest income rose by 71.8 per cent to N356.3 billion as stronger lending income combined with a 2.7 per cent decline in interest expenses following an increase in low-cost customer deposits. As a result, the group’s net interest margin improved to 11.2 per cent, up from 9.1 per cent a year earlier.
FCMB’s digital businesses, including payments, digital lending and wealth management, also recorded solid growth. Digital revenue increased to N89.1 billion, accounting for 13.2 per cent of total gross earnings as customer adoption and transaction volumes continued to rise.
Operating expenses rose by 12.3 per cent to N172 billion, significantly below revenue growth, reflecting tighter cost controls and efficiency gains from digital transformation. Consequently, the group’s cost-to-income ratio improved to 41.4 per cent from 57 per cent in the first half of 2025.
Impairment charges increased to N85.9 billion as the group accelerated the clean-up of Stage 2 loans, including N63.4 billion in write-offs. The exercise reduced the banking subsidiary’s non-performing loan ratio to 5.2 per cent, closer to the regulatory threshold.
Profit after tax climbed 90 per cent to N139.9 billion, while annualised return on average equity improved to 27.9 per cent. Earnings per share also rose to N4.23.
Total assets expanded to N8.36 trillion, customer loans increased to N2.49 trillion, and customer deposits reached N4.92 trillion, with low-cost deposits accounting for nearly three-quarters of the funding base.
Shareholders’ funds grew 40.3 per cent to N1.17 trillion, supported by retained earnings and a N227 billion capital injection, lifting the group’s capital adequacy ratio to 23.5 per cent.
Assets under management rose to N1.95 trillion, driven by continued growth in the pensions and asset management businesses.
Group Chief Executive Officer Ladi Balogun said the results reflected the strength of FCMB’s diversified business model, adding that the group remains on course to achieve a return on equity of more than 25 per cent for the 2026 financial year.
