FCMB H1 profit jumps 99% to N157.3bn in 2026

FCMB Group Plc nearly doubled its profit before tax in the first half of 2026, posting a 99 per cent increase to N157.3bn as stronger lending income, an improved deposit mix and expanding digital operations offset higher loan impairment charges. The financial services group, in its unaudited results for the six months ended 30 June 2026, reported gross earnings of N676.2bn, representing a 27.8 per cent increase from N529.2bn in the corresponding period of 2025. The growth was driven by a 31 per cent rise in interest income and a 22 per cent expansion in earning assets to N5.98tn. Net interest income surged 71.8 per cent to N356.3bn, supported by stronger lending income and a 2.7 per cent decline in interest expense as the group increased its share of low‑cost deposits. This helped lift net interest margin to 11.2 per cent from 9.1 per cent a year earlier. The group’s digital businesses, spanning payments, lending and wealth management, continued to gain traction. Digital revenue climbed to N89.1bn from N73.6bn, contributing 13.2 per cent of total gross earnings as transaction volumes increased across the three businesses. Operating expenses rose at a slower pace of 12.3 per cent to N172bn, reflecting tighter cost control, moderating inflation and efficiency gains from digital transformation. Consequently, the group’s cost‑to‑income ratio improved sharply to 41.4 per cent, from 57 per cent in H1 of 2025. FCMB, however, recorded significantly higher impairment charges of N85.9bn, compared with N36.2bn a year earlier, after accelerating the clean‑up of Stage 2 loans, including about N63.4bn in write‑offs. The exercise reduced the Nigerian banking subsidiary’s non‑performing loan ratio to 5.2 per cent, bringing it closer to the regulatory threshold. Related News US tariffs refund boosts Philips Champion Breweries posts N35.7bn H1 revenue Banks urged to deepen financial inclusion, MSME financing Profit after tax rose 90 per cent to N139.9bn, while annualised return on average equity improved to 27.9 per cent from 20.6 per cent. Annualised earnings per share also increased to N4.23, despite the enlarged share capital following the group’s recapitalisation. On the balance sheet, total assets grew 9.5 per cent to N8.36tn, while customer loans increased 5.2 per cent to N2.49tn, supported by growth in retail, SME, consumer and foreign currency corporate lending. Customer deposits expanded 11.4 per cent to N4.92tn, with the proportion of low‑cost deposits improving to 74.9 per cent from 65.4 per cent at the end of 2025, contributing to lower funding costs. Shareholders’ funds rose 40.3 per cent to N1.17tn, driven by retained earnings and a capital injection of about N227bn in the second quarter. The stronger capital base lifted the group’s capital adequacy ratio to 23.5 per cent, providing additional capacity to support future business growth. Assets under management also increased 14.3 per cent to N1.95tn, reflecting continued market share gains by FCMB Pensions and FCMB Asset Management. Commenting on the results, Group Chief Executive Officer, Ladi Balogun, said the performance reflected the strength of FCMB’s recapitalised and diversified business model. He noted that stronger net interest margins, a healthier funding mix, disciplined cost management and rising contributions from non‑banking businesses had enhanced earnings quality, adding that the group remained on course to achieve a return on equity of more than 25 per cent for the 2026 financial year. Odinaka Anudu