FCMB reports N157.3 billion pre-tax profit in H1 2026 as net interest income rises

FCMB Group has released its H1 2026 results, reporting a pre-tax profit of N157.300 billion for the six months ended June 30, 2026.

This represents 98.80% YoY increase from N79.123 billion in the corresponding period of 2025.

For the second quarter of 2026, pre-tax profit stood at N70.313 billion, representing a decline of 19.17% from the derived first-quarter pre-tax profit of N86.987 billion, but an increase of 59.43% from N44.103 billion in Q2 2025.

Management commentary

Speaking on the 1H 2026 results, Ladi Balogun, the Group Chief Executive Officer, commented that:

“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”.

Key Highlights: (H1 2026 vs. H1 2025)

Gross earnings: N676.179 billion; +27.77% YoY
Interest and discount income: N600.518 billion: +31.00% YoY
Interest expense: N244.171 billion; +2.72% YoY
Net interest income: N356.347 billion; +71.81% YoY
Fee and commission income: N58.012 billion; +22.41% YoY
Profit after tax: N139.860 billion; +90.49% YoY
Basic earnings per share: N4.23; +14.32% YoY
Total assets: N8.358 trillion; +9.53%
Cash and cash equivalents: N1.546 trillion; +19.00%
Loans and advances to customers: N2.490 trillion; +5.23%
Shareholders’ funds: N1.172 trillion; +40.28%

Driving the numbers

FCMB’s earnings growth was driven primarily by a significant expansion in net interest income.

Interest and discount income increased by 31.00% to N600.518 billion, while interest expense declined by 2.72% to N244.171 billion.
This lifted net interest income by 71.81% to N356.347 billion.
Interest income from loans and advances remained the largest contributor, accounting for N296.139 billion, or about 49.31% of total interest income. However, this was slightly below the N299.154 billion recorded in H1 2025.
Income from cash and cash equivalents was the fastest-growing component, rising to N141.117 billion from N38.092 billion. This contributed about 23.50% of total interest income.
Interest income from investment securities measured at amortised cost increased to N89.136 billion, while income from securities measured at fair value through other comprehensive income rose to N74.127 billion.
Combined, investment securities generated N163.262 billion, representing about 27.19% of total interest income.

On the funding side, interest expense on customer deposits increased to N145.182 billion from N128.026 billion and accounted for about 59.46% of total interest expense.

Including deposits from banks, deposit-related costs amounted to N174.094 billion, representing about 71.30% of total interest expense.
Interest expense on borrowings declined to N60.436 billion from N63.637 billion, while the cost of debt securities issued fell to N3.948 billion from N9.623 billion. These declines helped offset the increase in the cost of customer deposits.
Non-interest income also supported the performance.
Gross fee and commission income increased by 22.41% to N58.012 billion, while fee and commission expenses declined to N7.950 billion from N9.481 billion.
Consequently, net fee and commission income grew by 32.05% to N50.063 billion.
Service fees and commissions were the largest fee-income component at N25.701 billion, accounting for about 44.30% of gross fee and commission income.

Account maintenance fees contributed N10.516 billion, asset management fees generated ₦6.669 billion, and electronic fees and commissions contributed N5.892 billion.

The main pressure on profitability came from impairment charges.

Net impairment losses on financial instruments rose by 137.24% to N85.932 billion, compared with N36.221 billion in H1 2025.

Loan and advance impairments amounted to N48.456 billion, while impairments on other assets stood at N48.099 billion.
Recoveries on loans previously written off reduced the net charge by N10.555 billion.

Operating costs increased more moderately than income.

Personnel, depreciation and amortisation, general and administrative, and other operating expenses collectively increased by about 12.34% to N172.050 billion.

Other operating expenses were broadly stable at N39.424 billion, compared with N39.556 billion a year earlier.

AMCON levy remained the largest component at N21.703 billion, followed by NDIC insurance premium of N10.331 billion.

Balance sheet

On the balance sheet, total assets increased by 9.53% to N8.358 trillion.

Investment securities rose by 20.40% to N2.451 trillion, while loans and advances to customers increased by 5.23% to N2.490 trillion.
Customer deposits increased by 11.40% to N4.922 trillion, providing additional funding for asset growth.

Cash and cash equivalents rose by 19.00% to N1.546 trillion, while total equity increased to N1.175 trillion from N836.411 billion at the end of 2025.

Market reaction

FCMB closed its last trading day, Monday, July 27, 2026, at N12.00 per share on the Nigerian Exchange, recording no change from the previous trading session.

The stock was down 0.41% year-to-date but up 15.94% month-to-date in July, compared with its closing price of N10.35 at the end of June 2026.