FCMB Group Plc posted a net foreign exchange loss of ₦14.06 billion in 2025, reversing a ₦36.47 billion gain recorded a year earlier.
The lender disclosed this in its unaudited financial statements for the year ended December 31, 2025, released on Thursday.
Pinnacle Daily analysis of the results shows that the reversal was largely driven by unrealised foreign exchange revaluation losses arising from the translation of foreign currency-denominated assets and liabilities into naira at the prevailing spot exchange rate at the reporting date.
The Group also reported negative foreign currency translation differences of ₦5.71 billion in Other Comprehensive Income, a sharp contrast to the ₦33.04 billion positive translation gains recorded in 2024.
The figures indicate that adverse currency movements weakened the naira value of FCMB Group’s foreign operations and exposures by year-end, reflecting market volatility rather than completed cash transactions.
Earnings surge on strong interest income
Despite the FX setback, FCMB Group posted a strong improvement in profitability, with profit after tax rising to ₦176.91 billion in 2025, representing a 141.2 per cent increase from ₦73.34 billion in 2024.
Its earnings per share reflected the surge, as both basic and diluted EPS rose to 3.96 naira from 2.46 naira a year earlier.
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Profit before minimum tax and income tax increased to ₦200.91 billion from ₦111.90 billion, while results from operating activities climbed to ₦200.15 billion from ₦112.12 billion.
Total comprehensive income stood at ₦141.05 billion, compared with ₦103.79 billion in the prior year.
The performance was driven by a sharp expansion in gross earnings, which crossed the ₦1 trillion mark to reach ₦1.13 trillion, up from ₦794.43 billion in 2024.
Net interest income more than doubled to ₦502.89 billion from ₦225.30 billion, supported by a 61.2 per cent increase in interest and discount income to ₦1.00 trillion.
Net fee and commission income also rose by about 25.6 per cent to ₦73.83 billion, boosted by higher service fees, commissions and account maintenance charges.
However, net trading income declined to ₦39.21 billion from ₦53.79 billion, reflecting weaker bond trading income.
Records higher operating costs
The results show that personnel expenses increased to ₦105.97 billion from ₦79.30 billion, while general and administrative expenses rose to ₦127.02 billion from ₦87.55 billion.
Its net impairment losses on financial instruments more than doubled to ₦86.00 billion, driven mainly by losses on loans and advances of ₦92.51 billion, partly offset by recoveries of ₦10.43 billion on previously written-off loans.
Financial position remains solid
FCMB Group’s total assets grew to ₦7.54 trillion as of December 31, 2025, from ₦7.05 trillion a year earlier, with loans and advances to customers at ₦2.29 trillion and investment securities at ₦2.06 trillion.
Its total liabilities rose to ₦6.72 trillion from ₦6.37 trillion, while customer deposits edged up to ₦4.40 trillion.
Its total equity also strengthened to ₦823.42 billion, supported by a significant increase in retained earnings to ₦309.19 billion from ₦188.44 billion in 2024.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
