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Reading: FCMB Group Records 46% Surge in Pre-Tax Profit to ₦134.5bn
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FCMB Group Records 46% Surge in Pre-Tax Profit to ₦134.5bn

Kenneth Afor
Last updated: 2025/12/05 at 8:32 PM
Kenneth Afor
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FCMB Group Plc has announced a strong financial performance for the nine months ended September 30, 2025, recording a 46 per cent year-on-year increase in Profit Before Tax (PBT) to ₦134.5 billion, driven primarily by widened net interest margins and robust digital banking growth.

In its unaudited financial results released on the Nigerian Exchange Limited (NGX) on Friday, the Group also reported a 52 per cent rise in Profit After Tax (PAT) to ₦125.4 billion, reflecting improved operational efficiency and revenue expansion across key business segments.

According to the report, gross revenue surged by 40.9 per cent to ₦828.1 billion from ₦587.7 billion recorded in the corresponding period of 2024. This growth was largely supported by a 64.7 per cent increase in interest income. However, non-interest income declined by 33.8 per cent, mainly due to a ₦54.6 billion year-on-year drop in currency revaluation gains.

The Group’s digital business — spanning lending, payments and wealth management — delivered a strong performance, with digital revenues rising by 54 per cent to ₦113.6 billion from ₦73.6 billion in the prior year. Digital activities now contribute 13.7 per cent of gross earnings, with lending accounting for 74.4 per cent, payments 23.0 per cent and wealth management 2.6 per cent.

Net interest income more than doubled, climbing by 101.9 per cent to ₦350.8 billion from ₦173.8 billion a year earlier. Yield on earning assets improved significantly to 21.1 per cent, lifting the net interest margin to 10.1 per cent from 6.3 per cent recorded at full-year 2024.

Operating expenses increased by 41.3 per cent to ₦238.9 billion due to higher personnel costs, regulatory charges, technology investments, and business expansion. Despite this, the Group’s cost-to-income ratio improved to 55.5 per cent from 59.9 per cent in the previous financial year.

Net impairment loss on financial assets rose by 28.6 per cent to ₦57.1 billion following the exit of its Nigerian banking subsidiary from the Central Bank of Nigeria’s loan forbearance programme. Consequently, the cost of risk increased to 2.8 per cent from 1.8 per cent in 2024.

Performance across business divisions remained strong. Consumer Finance grew PBT by 78.5 per cent, the Banking Group by 68.8 per cent, and Investment Management by 27.6 per cent, while Investment Banking declined by 34.6 per cent due to a one-off divestment gain recorded in 2024. The Banking Group contributed 83.2 per cent of total PBT, followed by Consumer Finance at 11.6 per cent, Investment Management at 4.6 per cent, and Investment Banking at 1.3 per cent.

On the balance sheet, total assets rose by 2.5 per cent to ₦7.23 trillion as at September 2025 from ₦7.05 trillion in December 2024. Loans and advances declined by 2.9 per cent to ₦2.29 trillion, impacted by currency revaluation, loan write-offs, and concentrated repayments. The Group’s non-performing loan (NPL) ratio closed at 5.2 per cent, while capital adequacy stood at 17.8 per cent.

Customer deposits grew modestly by 2.3 per cent to ₦4.40 trillion from ₦4.30 trillion at the end of 2024. Low-cost deposits increased sharply by 17.6 per cent to ₦435.7 billion, while term deposits declined by 18.4 per cent to ₦336.4 billion, pushing the low-cost deposit mix to 66.1 per cent from 57.5 per cent.

Assets under management expanded by 15.9 per cent to ₦1.59 trillion, while investment banking transaction value soared by 285 per cent to ₦3.4 trillion, compared to ₦877 billion in the corresponding period of 2024.

Earnings per share rose to ₦3.91 from ₦2.46, while return on average equity strengthened significantly to 22.4 per cent from 12.7 per cent, underscoring the Group’s improved profitability and value creation for shareholders.

News.ng reports that FCMB closed trading on Friday, December 5, 2025, at ₦10.90 per share on the Nigerian Exchange (NGX), marking a 3.8 per cent increase from its previous closing price of ₦10.50.

The stock began the year at ₦9.40 and has since appreciated by 16 per cent, placing it 98th among listed equities on the NGX in terms of year-to-date performance.

Over the past three months, from September 9 to December 5, 2025, FCMB has emerged as the fifth most actively traded stock on the Nigerian Exchange.

Within this period, a total of 1.49 billion shares were exchanged in 43,774 transactions, with a combined market value of ₦15.7 billion. Trading activity averaged 23.6 million shares per session. The stock recorded its highest daily volume of 288 million shares on September 10, while the lowest volume of 1.52 million shares was posted on September 17.

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Posted by Kenneth Afor
A graduate of Mass Communication from Yaba College of Technology with over four years in journalism (print and electronic) in several beats including business, politics, sports and entertainment.
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