FCMB Group leveraged a sharp expansion in interest income to drive a 52.3 per cent increase in net profit for the first nine months of the year, making it one of the few outliers that are still reporting a profit increase as the bottom line of Nigerian banks take a hit from a slide in currency revaluation gains.
Lenders in the country this year are witnessing a reversal of fortune in growing profit as the huge Foreign Exchange (FX) revaluation gains from devaluing the naira in recent years dries up.
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That windfall income considerably fuelled the bumper profits that most banks recorded between 2023 and 2024, when they capitalised on a volatility in the exchange rate to shore up profit.
For FCMB Group, foreign exchange loss in the period under review stood at N16.9 billion, according to its unaudited report released on Friday.
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That was a sharp deviation from a year earlier when FX gains of N37.7 billion was reported.
The revenue of the financial services group enlarged by 40 per cent to N828.1 billion, while net interest income advanced by as much as 101.9 per cent to N350.8 billion.
General and administrative expenses surged by 34.7 per cent, with IT & IS expenses as the main pressure point.
Profit before tax was up by 46.5 per cent at N134.5 billion, while after-tax profit jumped to N125.5 billion from N82.4 billion.
“We have successfully concluded our public offer and are on track to complete the minority subsidiary sale by the end of December,” the banking group said in a separate statement.
“Subject to CBN capital verification (currently ongoing), shareholder approval at the EGM, and the required regulatory consents, we are positioned to deliver the N500bn capital target ahead of the March 2026 deadline for our banking subsidiary, FCMB Limited.”
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FCMB Group is in the process of offloading its shareholding in the consumer credit provider, Credit Direct, an investment banker not wanting to be named, told PREMIUM TIMES.
The proceeds are to used to boost the recapitalisation plans of its banking division, she added.
“Subject to CBN capital verification (currently ongoing), shareholder approval at the EGM, and the required regulatory consents, we are positioned to deliver the N500bn capital target ahead of the March 2026 deadline for our banking subsidiary, FCMB Limited.”
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