FCMB Group Plc reported a sharp rise in earnings for the year ended December 31, 2025, underlining the benefits of higher interest income and improved margins, even as rising impairment charges weighed on parts of its balance sheet.
In unaudited results released this week, the Nigerian financial services group said profit before tax climbed 80% to N200.91 billion, up from N111.9 billion in 2024. Profit after tax surged even faster, rising 141.7% to N176.91 billion from N73.34 billion a year earlier, reflecting stronger operating performance and improved efficiency.
Gross earnings grew by 41.8% to N1.13 trillion, supported largely by robust growth in interest income and gains from trading activities. Earnings per share increased to N3.96, up 60% year on year, reinforcing the scale of the rebound in profitability.
Interest income was the main driver of growth, rising 61.2% to N1.00 trillion and accounting for nearly 89% of gross earnings. The increase reflected both higher loan volumes and improved pricing, particularly in loans and advances to customers, which contributed about 61% of total interest income. Investment securities provided a further 25%, highlighting the group’s continued reliance on both lending and treasury activities.
While interest expenses also rose, the increase was more modest. Funding costs climbed 26% to N499.23 billion, driven largely by customer deposits, which accounted for more than 70% of total interest expense. Borrowings and debt securities made up the balance. The slower pace of growth in funding costs relative to interest income translated into a sharp improvement in margins.
Net interest income more than doubled, rising 122% to N502.89 billion. This marked a significant strengthening of FCMB’s core earnings capacity and reflected tighter management of its cost of funds in a high interest rate environment.
Operating profit rose by 78.7% to N200.15 billion, broadly in line with the growth in pre-tax profit. However, the results also highlighted rising credit risk pressures. Net impairment losses on financial instruments jumped 108.7% to N86.0 billion, absorbing about 17% of net interest income. The increase suggests higher provisioning for non-performing loans and reflects the more challenging operating environment for borrowers.
Non-interest income provided additional support to earnings. Fee and commission income grew 29% to N95.97 billion, contributing 8.5% of gross earnings. The growth was driven by increased activity in transactional banking and advisory services, helping to diversify revenue away from interest-dependent sources. Net trading income stood at N39.21 billion, contributing 3.5% of gross earnings, though it declined 27.3% from the previous year.
On the balance sheet, FCMB posted moderate growth. Total assets increased by 6.9% to N7.54 trillion. Customer deposits rose 2.5% to N4.40 trillion and now account for more than 58% of total assets, underscoring the group’s stable funding base. Loans and advances to customers stood at N2.29 trillion, slightly lower than the previous year, reflecting a more cautious lending stance.
Equity expanded by 19.5% to N823.42 billion, strengthening the group’s capital position and providing additional buffers for future growth.
FCMB’s performance exceeded internal profit expectations. The group had projected a full-year profit after tax of N171.5 billion, based on a fourth-quarter target of N58.8 billion. Actual results came in above that level, pointing to stronger-than-anticipated execution.
In the equity market, FCMB shares closed 2025 at N12.09, up 28% from the start of the year. The stock has since eased to N11.05, down 3.73% year to date. At current prices, the group’s market capitalisation of about N496 billion remains well below its net asset value of N823.42 billion.
Overall, the results point to solid earnings momentum, driven by interest income and improved margins, though rising impairment costs remain a key risk to watch as economic conditions evolve.