FCMB Group H1 2026 pre-tax profit jumps 98.8% to N157.3 billion as net interest income surges

FCMB Group has reported a pre-tax profit of N157.300 billion for the six months ended June 30, 2026, a 98.80% year-on-year increase from N79.123 billion in H1 2025. The result was driven by a 71.81% expansion in net interest income to N356.347 billion, as the bank benefited from rising interest income and lower interest expense growth.

Key highlights and management commentary

Gross earnings rose 27.77% to N676.179 billion, while profit after tax climbed 90.49% to N139.860 billion. Basic earnings per share increased 14.32% to N4.23. For the second quarter alone, pre-tax profit stood at N70.313 billion, down 19.17% from the derived Q1 figure of N86.987 billion but up 59.43% from N44.103 billion in Q2 2025.

Ladi Balogun, Group Chief Executive Officer, said: "Our first-half performance demonstrates the strength of our recapitalised and diversified business model. We delivered record profitability despite accelerating the normalisation of asset quality towards regulatory thresholds, reflecting our commitment to building a stronger balance sheet for long-term growth. Expanding net interest margins, an improved low-cost deposit mix, disciplined cost management, and growing contributions from our non-banking businesses continue to enhance the quality and sustainability of our earnings." He added that the group remains "firmly on track to deliver a Return on Equity (RoE) of over 25% for the 2026 financial year."

Driving the numbers

Interest and discount income rose 31.00% to N600.518 billion, while interest expense increased only 2.72% to N244.171 billion. Interest income from loans and advances fell slightly to N296.139 billion from N299.154 billion, but income from cash and equivalents surged to N141.117 billion from N38.092 billion. Investment securities generated N163.262 billion in interest income, representing 27.19% of the total.

On the funding side, interest expense on customer deposits rose to N145.182 billion from N128.026 billion, accounting for 59.46% of total interest expense. However, lower costs on borrowings (N60.436 billion, down from N63.637 billion) and debt securities (N3.948 billion, down from N9.623 billion) helped contain overall funding costs.

Non-interest income also supported earnings. Net fee and commission income grew 32.05% to N50.063 billion, driven by service fees and commissions of N25.701 billion, account maintenance fees of N10.516 billion, and asset management fees of N6.669 billion.

The main drag on profitability was impairment charges. Net impairment losses on financial instruments surged 137.24% to N85.932 billion from N36.221 billion. Loan and advance impairments were N48.456 billion, while impairments on other assets totalled N48.099 billion. Recoveries on previously written-off loans reduced the net charge by N10.555 billion. Operating costs rose a comparatively moderate 12.34% to N172.050 billion, with the AMCON levy of N21.703 billion as the largest component.

Balance sheet and market reaction

Total assets increased 9.53% to N8.358 trillion. Investment securities rose 20.40% to N2.451 trillion, and loans and advances to customers grew 5.23% to N2.490 trillion. Customer deposits climbed 11.40% to N4.922 trillion, while cash and equivalents jumped 19.00% to N1.546 trillion. Shareholders' funds expanded 40.28% to N1.172 trillion.

FCMB closed at N12.00 per share on July 27, 2026, unchanged from the previous session. The stock is down 0.41% year-to-date but up 15.94% month-to-date in July.

For Nigerian consumers and businesses, FCMB's strong net interest income growth points to continued high lending rates, but the sharp rise in impairment provisions signals that asset quality is under pressure as the bank normalises toward regulatory thresholds. This could constrain credit availability or push loan pricing higher in the second half of 2026.