FCMB Group Plc posted a profit before tax of N86.99 billion in the first quarter of 2026, a 148.4 per cent increase from N35.02 billion recorded in the corresponding period of 2025, as strong growth in interest income and lower funding costs boosted earnings.
The group’s unaudited results for the quarter ended March 31, 2026, showed profit after tax rising to N76.53 billion from N32.23 billion a year earlier, while gross earnings increased by 26.7 per cent to N320.22 billion.
The performance underscores how Nigeria’s elevated interest rate environment continues to benefit lenders with strong liquidity positions and diversified investment portfolios.
Interest income rose by 33.5 per cent to N286.14 billion from N214.37 billion, providing the primary driver of earnings growth. Net interest income nearly doubled, jumping 92.4 per cent to N168.35 billion from N87.50 billion.
A closer look at the numbers shows that the earnings surge was driven less by loan growth and more by improved returns on liquid assets and investment securities.
Income from cash and cash equivalents climbed sharply to N62.37 billion from N3.71 billion in the same period last year, reflecting higher yields on short-term placements. Earnings from fair value through other comprehensive income (FVOCI) securities also rose strongly to N38.46 billion.
Although income from loans and advances declined by 4.3 per cent to N143.80 billion, lending remained FCMB’s largest source of interest income, accounting for just over half of total interest earnings.
At the same time, the group benefited from lower funding costs. Interest expense fell to N117.79 billion from N126.87 billion despite growth in customer deposits.
The decline was largely driven by reduced costs on bank deposits and borrowings, suggesting FCMB relied more heavily on customer deposits, a relatively cheaper source of funding, while reducing dependence on wholesale funding.
Customer deposits increased to N4.68 trillion from N4.42 trillion at the end of 2025, strengthening the group’s funding base.
Beyond interest earnings, FCMB recorded growth in fee-based income. Net fee and commission income rose by 30.3 per cent to N24.47 billion, supported by increased transaction volumes and banking activity.
However, non-core income presented a mixed picture. The group reported a net trading loss of N3.42 billion compared with a trading gain of N14.34 billion a year earlier. Other losses also widened significantly, resulting in a combined loss position from trading and other gains.
Nevertheless, a sharp rise in other income helped cushion the impact of weaker trading performance.
Operating expenses increased across major cost lines, with personnel, administrative and other operating costs all recording double-digit growth. Impairment charges also rose by 29.3 per cent to N12.31 billion, indicating a more conservative approach to credit risk provisioning.
Despite the higher cost base, operating profit surged 146.4 per cent to N86.85 billion as growth in core banking income outpaced rising expenses.
The balance sheet remained strong. Total assets rose to N7.96 trillion from N7.63 trillion at the end of December 2025, while shareholders’ funds climbed to N1.14 trillion from N835.43 billion, supported by retained earnings and fresh capital injections.
Investors responded positively to the results. FCMB shares gained 6.7 per cent in intraday trading to N11.95, reflecting renewed optimism over the group’s earnings momentum and capital position.
The results suggest FCMB is benefiting from a strategic shift toward higher-yielding assets and lower-cost funding, positioning the lender to sustain earnings growth even as credit risks and operating costs remain elevated.