FCMB Profit Jumps 52% to N125 Billion as Net Interest Margin Rises

FCMB Group Plc reported a robust 52.3% surge in profit after tax (PAT) to N125.5 billion in its 9 Months 2025 results, a performance that underscores improved margins on lending operations and the Group’s agility in capitalizing on high-yield investment opportunities.

Notably, this bottom-line expansion was achieved despite significant headwinds from a 39.6% contraction in Non-Interest Revenue (NIR) and a 40.9% rise in interest expense.

In alignment with the Group’s margin recovery strategy, Net Interest Income (NII) expanded by over 2.0x Year on Year (YoY) to N350.8 billion.

This growth was anchored by an elevated asset yield of 25.5%. Furthermore, the strong NII outturn was supported by a slower acceleration in funding costs relative to asset repricing, with Cost of Funds rising marginally to 9.6%.

Consequently, Net Interest Margin (NIM) expanded by a notable 5.6 percentage points (ppts) YoY to 12.2%.

“We have successfully concluded our public offer and are on track to complete the minority subsidiary sale by the end of December. Subject to CBN capital verification (currently ongoing), shareholder approval at the EGM, and the required regulatory consents, we are positioned to deliver the ₦500bn capital target ahead of the March 2026 deadline for our banking subsidiary, FCMB Limited,” FCMB Group said.

Earnings Analysis

• Gross revenue of ₦828.1 billion for the period ended September 2025, a 40.9% growth from ₦587.7 billion for the same period prior year, driven by a 64.7% growth in interest income.
• FCMB’s digital business comprising Lending, Payments, and Wealth continued to record strong growth across revenue lines, transaction volumes and transaction value with digital now contributing 13.7% to gross earnings.
• Net interest income grew by 101.9% from ₦173.8 billion in the prior year, to ₦350.8 billion at the end of September 2025. The yield on earning assets improved to 21.1%, resulting in a growth in Net Interest Margin to10.1% for 9M 2025 from 6.3% as at FY 2024.
• Overall, PBT and PAT grew by 46% and 52% year-on-year to ₦134.5 billion and ₦125.4 billion respectively leading to a strong uplift in RoAE from 12.7% to 22.4% and EPS from ₦2.46 to ₦3.91 from FY 2024 to 9M 2025.
• The divisions of the Group reported Year-on-Year PBT growth as follows; Consumer Finance: 78.5%, Banking Group: 68.8%, Investment Management: 27.6%, and Investment Banking: -34.6% (one-off exceptional gain on divestment in FY 2024).
• Total assets increased by 2.5% to ₦7.23 trillion at the end of September 2025 from ₦7.05 trillion at the end of December 2024.
• Loans and advances declined by 2.9% to ₦2.29 trillion at the end of September 2025 from ₦2.36 trillion at the end of December 2024, impacted by currency revaluation, loan write-offs and concentrated paydowns. NPL closed at 5.2% and Capital Adequacy at 17.8%.

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