FCMB Group Reports Significant Growth in Profit for H1 2026
FCMB Group Plc has released its unaudited financial results for the first half of 2026, showing a remarkable 99% increase in profit before tax, rising to NGN157.3 billion from NGN79.1 billion in the previous year. This result continues the robust earnings momentum established during the 2025 fiscal year.
Comprehensive Growth Across Business Segments
According to the highlights from the six-month financial results disclosed on the Nigeria Exchange Limited (NGX), every segment of the Group’s operations saw impressive year-on-year growth in pre-tax profits. Consumer finance surged by 92%, banking group profits grew by 80%, investment banking saw a 76% increase, and investment management reported a 50% uplift.
Strong Financial Performance and Earnings Per Share Growth
Total profit for the first half of 2026 reached NGN676.2 billion, a 27.8% increase from NGN529.2 billion during the same period in 2025. This growth was propelled by a 31% rise in interest income and a 22% increase in earning assets, which grew from NGN4.9 trillion to NGN5.98 trillion. Earnings per share (EPS) also improved, rising from NGN3.96 for the full year of 2025 to NGN4.23 in the first half of 2026. This increase occurred despite a larger equity base following the recapitalization, showcasing the Group’s enhanced ability to generate revenue.
CEO Highlights Business Model Strength
Reflecting on the results, Mr. Ladi Balogun, Group Chief Executive Officer of FCMB Group, emphasized the resilience of the Group’s diversified and recapitalized business model. He noted that the record profitability achieved in the first half was underpinned by a focus on normalizing asset quality towards regulatory standards. Balogun expressed confidence that the Group’s return on equity (RoE) will surpass 25% for the full year 2026.
Digital Business Sees Continued Expansion
The Group’s digital operations, encompassing Payments, Lending, and Wealth, remained on a growth trajectory, with digital revenue climbing from NGN73.6 billion in the first half of 2025 to NGN89.1 billion in the same period of 2026. This segment contributed 13.2% to gross profit as transaction volumes surged across Lending, Payments, and Wealth services.
Strong Asset Growth and Loan Performance
As of June 2026, total assets grew by 9.5% to NGN8.36 trillion, reflecting the Group’s commitment to efficiency and balance sheet optimization. Customer loans and advances rose by 5.2% to NGN2.49 trillion, driven by sustained growth in high-margin retail, small business and consumer loans, as well as corporate foreign currency loans.
Capital Growth and Non-Banking Contributions Enhancing Stability
Customer deposits increased by 11.4%, reaching NGN4.92 trillion as of June 2026, with the low-cost deposit mix improving to 74.9%. Notably, the cost of funds decreased year-on-year, and interest expenses fell by 2.7%. The Group’s total capital surged 40.3% to NGN1.17 trillion, bolstered by increased retained earnings and approximately NGN227 billion in capital injected during the second quarter of 2026. This resulted in a healthy capital adequacy ratio of 23.5%, providing a robust buffer for future growth.
Diversification Beyond Banking Yields Strong Returns
The assets under management for FCMB Group increased by 14.3%, reaching NGN1.95 trillion as of June 2026, driven by expanding market share in FCMB Pensions and FCMB Asset Management. Additionally, the Group’s non-banking ventures collectively contributed 26% to pre-tax profits, with profits soaring 185% year-on-year to NGN40.7 billion, further reinforcing the diversification of revenue streams beyond traditional banking operations.
