FCMB Group's first-half profit before tax rises 99% to N157.3bn

This growth was attributed to stronger lending income, an improved deposit mix, and expanding digital operations, despite higher loan impairment charges. Gross earnings for the period rose by 27.8% to N676.2bn, driven by a 31% increase in interest income and a 22% expansion in earning assets to N5.98tn. Net interest income surged by 71.8% to N356.3bn, supported by a 2.7% decline in interest expense due to an increased share of low-cost deposits, which lifted the net interest margin to 11.2%.

Digital businesses contributed N89.1bn to revenue, representing 13.2% of total gross earnings. Operating expenses increased at a slower rate of 12.3% to N172bn, improving the cost-to-income ratio to 41.4%. The group recorded higher impairment charges of N85.9bn, including N63.4bn in write-offs, to clean up Stage 2 loans, reducing the Nigerian banking subsidiary’s non-performing loan ratio to 5.2%.

Profit after tax increased by 90% to N139.9bn, and annualised return on average equity improved to 27.9%. Total assets grew by 9.5% to N8.36tn, and customer deposits expanded by 11.4% to N4.92tn. Shareholders’ funds rose by 40.3% to N1.17tn, boosting the capital adequacy ratio to 23.5%.

Assets under management also increased by 14.3% to N1.95tn. Group Chief Executive Officer, Ladi Balogun, stated that the performance reflects the strength of FCMB’s recapitalised and diversified business mod