FCMB Group Plc’s profit before tax soared 46 per cent to ₦134.5 billion in the third quarter (Q3) of the year on stronger interest margins despite a decline in loans and advances to customers.
The bank disclosed this in its unaudited financial statements for the nine months ended September 30, 2025.
The results show that FCMB’s net interest income rose to ₦350.83 billion from ₦173.80 billion.
Analysts say net interest income is a key measure of a bank’s profitability.
It represents the difference between the interest revenue earned on its assets, such as loans and investments, and the interest paid out on its liabilities, including customer deposits and borrowings.
A review of the results shows, however, that loans and advances to customers declined by 2.9 per cent to ₦2.29 trillion at the end of September 2025 from ₦2.36 trillion at the end of December 2024.
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According to the bank, this was “impacted by currency revaluation, loan write-offs and concentrated paydowns.”
On the reserve, customer deposits grew by 2.3 per cent to ₦4.40 trillion from ₦4.30 trillion.
Pinnacle Daily reports that the Central Bank of Nigeria has kept the benchmark interest rate high and unchanged at 27.5 per cent in the nine months of this year, relative to the lower rate it was in the same period last year.
Other key financial performance
A review of the results shows that FCMB’s gross revenue rose to ₦828.1 billion, representing a 40.9 per cent growth from ₦587.7 billion for the same period last year.
The surge in gross revenue was driven by a 64.7 per cent growth in interest income.
Notably, non-interest income declined by 33.8 per cent driven by a ₦54.6 billion decline in currency revaluation gains.
The bank’s digital business, comprising lending, payments, and wealth, continued to record strong growth across revenue lines.
The transaction volumes and value contributed 13.7 per cent to gross earnings, resulting in a 54 per cent growth in digital revenues to ₦113.6 billion from ₦73.6 billion.
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The yield on earning assets improved to 21.1 per cent, resulting in a growth in net interest margin to 10.1 per cent from 6.3 per cent
Overall, FCMB’s profit after tax grew by 52 per cent to ₦125.45 billion from ₦82.39 billion.
Its non-performing loan (NPL) closed at 5.2 per cent, higher than the five per cent regulatory threshold.
Its capital adequacy at 17.8 per cent was also higher than the 15 per cent threshold for internationally licensed banks.
Racing to meet CBN’s recapitalisation deadline
FCMB is in the race to meet the March 2026 recapitalisation deadline as fixed by CBN.
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“We have successfully concluded our public offer and are on track to complete the minority subsidiary sale by the end of December.
“Subject to CBN capital verification (currently ongoing), shareholder approval at the EGM, and the required regulatory consents, we are positioned to deliver the ₦500bn capital target ahead of the March 2026 deadline for our banking subsidiary, FCMB Limited.
“With our recapitalisation programme on track and risk fundamentals remaining solid, we expect to maintain healthy profitability and a strong capital position going into 2026,” FCMB stated.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
