FCMB Group Plc grew profit after tax to ₦32.2 billion in the first quarter (Q1) of 2025, up from ₦28.8 billion recorded in Q1 2024, according to the bank’s unaudited financial statement obtained by Investors King.
The result reflects solid growth in interest income, improved efficiency in fee-based activities and reduced credit impairment charges.
Gross Earnings and Core Revenue Growth
The Group recorded ₦252.7 billion in gross earnings, representing a 41.1% increase from ₦179.1 billion filed in the same period of 2024.
This growth was largely driven by a 71% year-on-year increase in interest and discount income, which surged to ₦214.4 billion. The expansion was supported by growth in loan volumes and repricing of assets in response to higher interest rate conditions.
Interest expense also rose by 81.2% to ₦126.9 billion to reflect higher cost of funds across the sector.
However, net interest income climbed by 57.9% to ₦87.5 billion, indicating effective balance sheet management and margin optimization.
Fee and Commission Income Remains Robust
FCMB recorded a 43.4% growth in fee and commission income to ₦24.3 billion, up from ₦16.9 billion in Q1 2024.
Net fee and commission income after expenses stood at ₦18.8 billion, compared to ₦11.9 billion in the same period last year. This was bolstered by growth in digital transactions, card usage and advisory services.
Net trading income also rose to ₦14.3 billion from ₦9.5 billion, driven by gains on fixed income securities.
However, other non-interest income was impacted by a net loss of ₦440 million, compared to a gain of ₦27.1 billion in Q1 2024. The bank’s statement revealed it was due to non-recurrence of asset disposal income from the prior period.
Cost Management and Operational Efficiency
Operating expenses increased across most categories due to inflationary pressure with personnel expenses rising by 35.1% to ₦22.8 billion while general and administrative expenses jumped by 73.9% to ₦29.5 billion.
Depreciation and amortisation expenses also climbed to ₦3.9 billion.
Despite the cost increases, FCMB maintained profitability through effective revenue growth and improved credit risk management.
Notably, net impairment losses on financial instruments declined by 59.9% to ₦9.5 billion, suggesting improved asset quality and provisioning discipline.
Bottom Line and Comprehensive Income
Profit before tax stood at ₦35.0 billion, marginally up from ₦31.3 billion in Q1 2024. After a tax charge of ₦2.6 billion, profit for the period settled at ₦32.2 billion.
In terms of comprehensive income, the Group recorded ₦42.0 billion, supported by a fair value gain of ₦11.6 billion on debt instruments and foreign currency translation adjustments.
Earnings per share (EPS) stood at ₦3.25, compared to ₦5.81 in Q1 2024 with the prior period benefiting from exceptional gains.
Standalone Performance
At the company level, gross earnings declined to ₦4.6 billion from ₦9.2 billion in Q1 2024, mainly due to the absence of non-recurring gains.
However, net profit remained steady at ₦794 million, indicating efficient cost controls and income stability from investment activities.
Outlook
FCMB’s Q1 2025 results reflect a resilient business model with diversified revenue streams, enhanced cost controls, and improved risk asset quality. With interest rates remaining elevated and inflation gradually stabilizing, the Group is positioned to maintain strong operating margins.
However, further earnings growth will depend on continued momentum in digital banking, capital efficiency and maintaining asset quality.
The strong result sets a positive tone for the rest of the financial year, and investors will be watching the bank’s Q2 performance for confirmation of full-year earnings trajectory.
