FCMB Group reported a profit before tax of N157.3 billion in H1 2026, almost double the N79.2 billion recorded a year earlier. Profit after tax rose 90% to N139.9 billion, while gross earnings increased 27.8% to N676.2 billion.
At the centre of the performance is a banking franchise generating more income from its core operations. Net interest income climbed 71.8% to ₦356.3 billion as loan yields remained strong and funding costs eased. Net interest margin widened to 11.2%, up from 9.1% a year earlier.
Customer deposits expanded 11.4% to ₦4.92 trillion, yet interest expense declined by 2.7%. The shift reflects a richer mix of low-cost deposits, which now account for nearly three-quarters of total deposits, compared with about two-thirds at the end of last year.
Following the successful recapitalisation completed during the second quarter, shareholders’ funds increased by more than 40% to N1.17 trillion. Capital adequacy improved to 23.5%, providing additional capacity for loan growth and greater resilience against future credit losses as Nigeria’s banking industry adjusts to tougher capital requirements.
The Group’s digital businesses are also becoming increasingly relevant. Payments, lending and wealth management generated ₦89.1 billion in revenue during the period, representing 13.2% of gross earnings.
Beyond commercial banking, FCMB’s diversification strategy is beginning to make a measurable difference as non-banking subsidiaries contributed 26% of Group profit before tax after earnings climbed 185% to ₦40.7 billion. Credit Direct remained the largest contributor, posting a 92% increase in profit before tax as digital consumer lending continued to expand. Wealth management and investment banking businesses also benefited from higher client activity and rising assets under management.
Not All is Rosy
There has been a sharp increase in impairment charges. Net impairment losses rose to N85.9 billion from N36.2 billion in the corresponding period of 2025.
FCMB management says the higher charge reflects an accelerated clean-up of the loan portfolio, including about ₦63.4 billion in write-offs. The exercise reduced the banking subsidiary’s non-performing loan ratio to 5.2%, bringing it close to the Central Bank of Nigeria’s prudential benchmark.
Loan growth was relatively modest at 5.2%, despite a stronger capital base and double-digit deposit growth. There is also limited disclosure around the remaining credit portfolio.
FCMB has benefited from wider lending margins, cheaper deposits and a more diversified earnings mix. Those are positive developments, but Nigeria’s interest-rate cycle will not remain elevated indefinitely. The real test is whether the Group can preserve profitability once margins begin to normalise.
Group Chief Executive Ladi Balogun believes it can noting “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.
“We remain firmly on track to deliver a Return on Equity (RoE) of over 25% for the 2026 financial year”. He concluded.
