FCMB Group’s Gross Earnings Jump to N828.1 billion on Strong Interest Income Growth

FCMB Group’s Gross Earnings Jump to N828.1bn on Strong Interest Income Growth

A sharp 64.7% rise in interest income has boosted FCMB Group’s gross earnings to N828.1 billion for the first nine months of 2025. The financial services group disclosed the results in an earnings statement filed with the Nigerian Exchange on Friday.

The new figure represents a 40.9% increase from the N587.7 billion recorded in the same period of 2024.

High-Interest Environment Fuels Gains for Lenders

The PUNCH reports that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria has maintained a hawkish monetary stance for most of 2025 to manage inflation, which has been easing for the past six months.

At its most recent meeting, the MPC kept the benchmark interest rate at 27%, a position that continues to favour lenders while putting pressure on the real sector.

Decline in Non-Interest Income Despite Digital Gains

Despite the growth in interest earnings, the group’s non-interest income fell by 33.8%, largely due to a massive N54.6 trillion drop in currency revaluation gains.

However, FCMB highlighted the continued expansion of its digital operations—including lending, payments, and wealth services—which now contribute 13.7% of total gross earnings.

Digital revenue rose 54% year-on-year, increasing from N73.6 billion in September 2024 to N113.6 billion by September 2025.
Breakdown:

• Lending: 74.4%
• Payments: 23%
• Wealth: 2.6%

Net Interest Income More Than Doubles

The earnings release shows:

• Net interest income surged by 101.9% to N350.8 billion, up from N173.8 billion in 2024.
• Yield on earning assets improved to 21.1%.
• Net Interest Margin (NIM) rose significantly to 10.1% for 9M 2025, up from 6.3% at FY 2024.

Operating expenses climbed 41.3% year-on-year to N238.9 billion, driven largely by:

• Higher personnel expenses
• Regulatory fees (AMCON & NDIC)
• Technology investments
• Business expansion initiatives

Higher Impairment Charges and Rising Cost of Risk

The group recorded a 28.6% increase in net impairment losses on financial assets, which rose to N57.1 billion following its banking subsidiary’s exit from the CBN loan forbearance programme.

Consequently, the cost of risk increased to 2.8%, compared to 1.8% at the end of 2024.

Profitability Improves as Assets Grow

Despite economic pressures, FCMB Group delivered stronger profitability:

• Profit Before Tax (PBT): Up 46% to N134.5 billion
• Profit After Tax (PAT): Up 52% to N125.4 billion

Total assets grew 2.5% to N7.23 trillion by September 2025, from N7.05 trillion in December 2024.

However, loans and advances fell 2.9% to N2.29 trillion, affected by currency revaluation, loan write-offs, and concentrated paydowns.

The group’s Non-Performing Loan (NPL) ratio closed at 5.2%, while Capital Adequacy Ratio (CAR) stood at 17.8%.

Recapitalisation on Track Ahead of 2026 Deadline

FCMB Group also provided updates on its recapitalisation efforts, stating that its banking subsidiary remains on course to meet regulatory requirements before the March 2026 deadline.

The group said:

• Its public offer has been successfully concluded
• Minority subsidiary sale will be finalised by December
• CBN capital verification is underway
• Shareholder approval will be sought at the upcoming Extraordinary General Meeting (EGM)

According to the statement, FCMB is well positioned to deliver on its N500 billion capital target, strengthen margins, deepen customer activity, and sustain digital-driven growth going into 2026.

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