FCMB Group PLC has announced a robust financial performance for the first quarter ending March 31, 2025, reporting a profit before tax of N35 billion. This figure underscores the Group's strong start to the financial year.
The Group's gross revenue witnessed a significant year-on-year increase of 41.1%, reaching N252.7 billion. This achievement surpassed its Q1 projection of N226.9 billion, primarily fueled by a substantial 58 percent surge in net interest income.
Asset and Loan Portfolio Expansion
FCMB Group's total assets experienced a healthy growth of 5 percent, expanding from N7.05 trillion in December 2024 to N7.40 trillion by the end of March 2025. The Group's commitment to supporting economic activity and business expansion is further evidenced by a 3.4% increase in loans and advances within the same period, rising to N2.44 trillion.
Banking Sector Leads Profit Contribution
An analysis of the profit contribution across FCMB Group's various business segments reveals that the Banking Group remains the dominant contributor, accounting for 81.4% of the total profit. Consumer finance followed with a contribution of 11.7%, while investment management and investment banking contributed 5.0% and 0.7%, respectively, highlighting the diversified nature of the Group's earnings.
Improved Net Interest Margins Driven by Strategic Gains
The Group's net interest margins showed significant improvement, rising to 8.3% in Q1 2025 from 5.4% in Q4 2024. This positive shift was attributed to a 200 basis point reduction in the cost of funds and a higher yield on earning assets, which reached 20.2%. FCMB Group credited these improvements to the early benefits derived from capital raised in 2024, alongside growth in low-cost deposit liabilities.
Strategic Focus on Diversified Ecosystem
Ladi Balogun, the Group Chief Executive, reiterated FCMB's strategic direction, emphasizing the Group's commitment to leveraging its diversified structure to cultivate a cohesive ecosystem that fosters inclusive and sustainable economic growth.
Analysts Express Optimism for Future Outlook
Financial analysts have responded positively to FCMB Group's Q1 performance, expressing optimism regarding the Group's outlook for the remainder of the financial year. The diversified revenue base and strengthened capital position are seen as key factors creating a favorable scenario for continued growth.
FCMB Group's Pan-African Vision
Headquartered in Lagos and listed on the Nigerian Exchange, FCMB Group PLC operates as a financial service holding company with strategic interests across vital sectors. Serving over 14 million customers through its five core platforms – banking, consumer finance, investment management, investment banking, and financial technology – the Group is focused on building an integrated financial ecosystem aimed at promoting inclusive and sustainable growth across Africa, the African diaspora, and the United Kingdom.