FCMB Group Plc reported a pre-tax profit of N157.3 billion for the first half of 2026, more than doubling from the N73.1 billion recorded in the same period last year. The significant growth was underpinned by a 45% surge in net interest income, which rose to N210 billion from N145 billion in H1 2025.
Net Interest Income Drives Performance
The bank’s net interest income benefited from an expanding loan book and improved yield on earning assets. Loans and advances to customers grew by 28% to N1.8 trillion as at June 2026, compared to N1.4 trillion in the prior year. According to the bank’s Chief Financial Officer, Mr. Yemi Adeola, “The growth reflects our strategic focus on expanding our loan book and optimizing funding costs, which has allowed us to capture higher margins even in a competitive environment.”
Interest expense increased moderately by 18% to N95 billion, as the bank managed its deposit mix towards cheaper current and savings accounts. Net interest margin improved to 8.2% from 6.9% in H1 2025.
Non-Interest Income and Cost Management
Non-interest income also contributed to the bottom line, rising by 22% to N98 billion, supported by fee and commission income from digital banking services and electronic channels. Operating expenses grew by 15% to N112 billion, reflecting investments in technology and branch expansion, but the cost-to-income ratio improved to 52% from 55% a year earlier.
The bank’s total assets increased by 22% to N5.6 trillion, driven by growth in both loans and investment securities. Customer deposits rose by 20% to N4.2 trillion, with significant inflows from retail and corporate clients.
Asset Quality Remains Stable
FCMB’s asset quality metrics stayed within regulatory thresholds, with the Non-Performing Loan (NPL) ratio at 3.5%, slightly down from 3.7% in December 2025. The bank maintained adequate provisions, with a coverage ratio of 85%.
Profit after tax stood at N120.5 billion, compared to N58.9 billion in H1 2025, representing a 105% increase. Earnings per share rose to N6.10 from N3.00.
Outlook and Strategic Focus
Managing Director Mr. Ladi Balogun commented, “Our first-half performance demonstrates the resilience of our business model and the effectiveness of our digital-led strategy. We remain focused on deepening financial inclusion and supporting key sectors of the economy.” The bank expects continued momentum in the second half of 2026, with a focus on sustainable growth and shareholder value.
Analysts have noted that FCMB’s performance aligns with broader industry trends of rising interest income in a high-interest-rate environment. The bank’s capital adequacy ratio stood at 16.5%, above the regulatory minimum of 15%.
