FCMB Group Plc reported a profit before tax of N202.100 billion for the year ended 31 December 2025, according to its audited financial statements just released.

This represents an 80.61 per cent year-on-year increase from N111.895 billion recorded in 2024, driven by a sharp expansion in interest income and net interest income.

Profit after tax rose to N177.271 billion from N73.337 billion in 2024, while gross earnings increased by 42.46 per cent to N1.132 trillion.

The Board of Directors also recommended a dividend of 35 kobo per share, amounting to N23.08 billion, subject to shareholder approval at the Annual General Meeting.

FCMB’s strong bottom-line performance was primarily driven by gross earnings expansion, underpinned by a record interest income performance.

Interest income rose by 61.68 per cent to N1.01 trillion, crossing the trillion-naira mark for the first time and accounting for nearly 89% of the group’s gross earnings of N1.13 trillion.

The largest contributor remained loans and advances to customers, which generated N611.63 billion in interest income, representing 60.84 per cent of total interest income.

Although its contribution declined from 69.67 per cent in 2024, the loan book remained the primary earnings engine of the group, with income from lending increasing by N178.42 billion year-on-year.

The most notable growth came from cash and cash equivalents, where interest income surged to N145.33 billion from just N12.80 billion in 2024. Its contribution to total interest income jumped to 14.46 per cent from 2.06 per cent, reflecting significantly higher yields on liquid assets and treasury placements during the year.

Investment securities also played an important role in earnings growth. Interest income from securities measured at amortized cost increased by 35.67% to N148.90 billion, while income from FVOCI securities rose by 50.61% to N99.46 billion.

Combined, investment securities contributed N248.37 billion, accounting for about 24.70% of total interest income.

Interest expenses also increased during the year, rising to N499.42 billion from N396.50 billion.

However, the growth in interest income significantly outpaced the increase in funding costs, resulting in net interest income surging by 124.55% to N505.91 billion from N225.30 billion.

The group also recorded stronger fee-based earnings. Net fee and commission income increased to N76.65 billion from N58.80 billion, supported by a 31.74% increase in fee and commission income to N97.89 billion.

However, trading and investment-related income moderated during the year. Net trading income declined to N37.79 billion from N53.79 billion, while the group recorded other losses of N12.12 billion compared with gains of N39.56 billion in the prior year.

Despite these headwinds, FCMB’s core banking earnings remained sufficiently strong to absorb the weaker performance from trading-related activities.

Operating expenses rose across major cost lines. Personnel expenses increased to N107.18 billion from N79.30 billion; general and administrative expenses rose to N135.34 billion from N87.55 billion, while other operating expenses increased to N68.65 billion from N48.33 billion.

Depreciation and amortization expenses also rose to N17.32 billion from N13.88 billion.

The group also booked impairment charges of N81.71 billion, nearly double the N41.24 billion recorded in 2024, reflecting a more conservative provisioning stance.

Despite the higher cost base and impairment charges, operating profit rose by 79.19% to N200.91 billion, while profit before tax increased by 80.61% to N202.10 billion.

On the balance sheet, total assets increased to N7.63 trillion from N7.05 trillion. The growth was driven mainly by customer deposits, which rose to N4.42 trillion from N4.30 trillion.

Cash and cash equivalents rose to N1.30 trillion from N795.39 billion.

Investment securities increased to N2.04 trillion from N1.19 trillion.

Loans and advances to customers remained stable at N2.37 trillion, which is 31% of total assets.

Shareholders’ funds increased to N835.43 billion from N688.17 billion, supported by strong earnings growth and reserve accumulation.

Mid-day post-release of the results, FCMB’s share price rose to N12.00 from N11.20, where it closed last week.

As of last week’s close, the stock was down 7.05% year-to-date, including a 4.3% decline in the first week of June.

Today’s intraday gain has narrowed that loss, although the final market reaction will depend on the closing price.