FCMB Group sees profit rise by 90% in six months

FCMB Group used different strategies to boost its profit by 90.5 percent for the first half of the year ending in June. This was revealed in the bank's latest financial report released on Monday.

The bank's gross earnings reached N676.2 billion, up from N529.2 billion. Most of this earnings, about 88.8 percent, came from interest and discount income. This increase in earnings was helped by a cut in some major expenses.

The cost-to-income ratio fell to 41.4 percent from 57 percent compared to the previous year. This change helped improve earnings.

FCMB Limited, the bank’s commercial banking branch, performed well in major income areas and made up more than three-quarters of the profit after tax.

Other parts of the group, like Credit Direct, which offers payroll-based loans, are also doing well and adding to the overall profit.

The bank managed to reduce interest expenses by 2.7 percent, which is N6.8 billion. At the same time, interest and discount income rose by 31 percent. This was due to a better mix of low-cost deposits and lower funding costs.

This led to a significant increase in net interest income from N207.4 billion to N356.3 billion.

In another statement on Monday, FCMB Group pointed out that its digital business, which includes payments, lending, and wealth management, played a big part in boosting growth. Digital revenue hit N89.1 billion, contributing 13.2 percent to gross earnings because of increased transaction volumes.

“Our first-half performance shows the strength of our recapitalised and diversified business model,” said Ladi Balogun, the CEO.

“We achieved record profits while also improving our asset quality to meet regulatory standards. This reflects our commitment to building a stronger balance sheet for long-term growth,” he added.

Net fee and commission income increased by almost one-third. This was due to higher fees and commissions and lower expenses related to them.

However, net trading income dropped sharply. It fell by 65.7 percent from last year due to weaker bond and treasury bill trading income.

Impairment losses also rose to N85.9 billion from N36.2 billion. The provision for other losses, apart from loans and advances, jumped by 2,427.6 percent to N48.1 billion.

Profit before tax nearly doubled to N157.3 billion. Profit for the period was N139.9 billion, up from N73.4 billion during the same time last year.

Mr Balogun assured that return on equity will exceed 25 percent this year, compared to 21.1 percent for the financial year 2025.