FCMB Q1 2026 profit jumps to N87 billion as earnings surge 26.72%

FCMB Group Plc has reported a profit before tax of N86.987 billion for the first quarter ended 31 March 2026, according to its unaudited financial statements.

This represents a 148.39% year-on-year increase from N35.020 billion recorded in Q1 2025, driven by stronger interest income, higher fee and commission income, and a significant expansion in net interest income despite elevated impairment charges and operating expenses.

Profit after tax rose to N76.527 billion from N32.230 billion in the corresponding period of 2025, while gross earnings increased by 26.72% to N320.220 billion.

Key Highlights (Q1 2026 vs Q1 2025) 

• Gross earnings: N320.220 billion, up 26.72% YoY
• Interest income: N286.136 billion, up 33.48% YoY
• Net interest income: N168.349 billion, up 92.41% YoY
• Net impairment losses: N12.308 billion, up 29.29% YoY
• Net fee and commission income: N24.471 billion, up 30.31% YoY
• Operating profit: N86.847 billion, up 146.37% YoY
• Earnings per share: N4.63, up 42.46% YoY from N3.25
• Total assets: N7.964 trillion, up 4.36% from December 2025
• Customer deposits: N4.676 trillion, up 5.83% from December 2025
• Shareholders’ funds: N1.139 trillion, up 36.35% from December 2025

Driving the numbers 

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

Interest income rose by 33.48% YoY to N286.14 billion, driven mainly by a sharp increase in income from cash and cash equivalents and stronger returns from FVOCI investment securities.

• The biggest growth came from cash and cash equivalents, where income surged to N62.37 billion from N3.71 billion. This lifted its contribution to total interest income to 21.80%, compared with just 1.73% in Q1 2025.
• Despite a 4.32% decline, loans and advances to customers remained the largest contributor, generating N143.80 billion, or 50.26% of total interest income. This shows that FCMB’s core lending business still anchored interest earnings, even though the strongest growth came from liquid assets and securities.
• Investment securities also supported the expansion, with FVOCI income rising 86.31% to N38.46 billion, while amortized-cost securities increased modestly to N41.51 billion.

Overall, the mix shows that FCMB’s Q1 earnings growth was driven more by balance sheet yield optimization than loan-book expansion

On the interest expense side, interest expense declined to N117.79 billion from N126.87 billion, helping to amplify the growth in net interest income.

• The decline was driven primarily by lower funding costs from deposits from banks, where interest expenses fell by 37.28% to N16.79 billion from N26.77 billion.
• Interest expense on borrowings also declined by 12.19% to N22.64 billion, while interest on debt securities issued dropped by 18.80% to N3.28 billion.
• Customer deposits remained the largest funding cost, accounting for 61.27% of total interest expense.
• Interest paid on customer deposits increased to N72.17 billion from N67.50 billion, reflecting growth in the deposit base to N4.68 trillion.
• However, the increase was more than offset by the sharp reduction in costs associated with bank deposits and borrowings.

The mix suggests FCMB relied less on relatively expensive wholesale funding sources and more on customer deposits, which contributed to the reduction in overall funding costs.

As a result, net interest income surged by 92.41% to N168.35 billion from N87.50 billion, making it the single largest driver of the group’s 148.39% increase in pre-tax profit

The group also recorded stronger non-interest income. Net fee and commission income increased to N24.471 billion from N18.779 billion, supported by growth in fee and commission income to N27.872 billion.

• However, trading activities weighed earnings. FCMB recorded a net trading loss of N3.424 billion compared with a net trading gain of N14.344 billion in Q1 2025.
• The group also reported other losses of N12.988 billion compared with a loss of N440 million in the prior year.

Together, these items resulted in a net loss position of N16.412 billion from trading and other gains, compared with a net gain of N13.903 billion a year earlier.

Despite these headwinds, other income surged to N9.636 billion from N140 million, helping to offset the weakness in trading income.

Operating expenses rose across major cost lines.

• Personnel expenses increased to N27.595 billion from N22.754 billion; general and administrative expenses rose to N32.358 billion from N29.475 billion, while other operating expenses increased to N21.966 billion from N19.459 billion.
• Depreciation and amortization also rose to N4.969 billion from N3.860 billion. Nevertheless, the strong growth in core banking income more than compensated for the higher cost base.

The group also booked impairment charges of N12.308 billion, up from N9.520 billion in Q1 2025, reflecting a more cautious credit-loss provisioning stance.

On the balance sheet, total assets increased to N7.964 trillion from N7.631 trillion at the end of 2025.

• Cash and cash equivalents rose to N1.810 trillion from N1.299 trillion, while investment securities increased to N2.170 trillion from N2.036 trillion.
• Customer deposits grew to N4.676 trillion from N4.419 trillion, reinforcing the group’s funding base.
• Shareholders’ funds crossed the N1 trillion mark, rising to N1.139 trillion from N835.430 billion, supported by earnings growth and fresh capital raised during the period.

Market reaction

FCMB shares were trading at N11.95 as of 11:55 a.m. today, up 6.70% from the previous closing price of N11.20. The stock touched an intraday high of N12.30 and a low of N11.25, with 76.73 million shares traded.

As of last week’s close, at N11.20, FCMB was down 7.05% year-to-date, including a 4.3% decline in the first week of June.

However, today’s intraday gain has narrowed those losses, though the final market reaction will depend on the closing price.

FCMB Group Plc has reported a profit before tax of N86.987 billion for the first quarter ended 31 March 2026, according to its unaudited financial statements.

This represents a 148.39% year-on-year increase from N35.020 billion recorded in Q1 2025, driven by stronger interest income, higher fee and commission income, and a significant expansion in net interest income despite elevated impairment charges and operating expenses.

Profit after tax rose to N76.527 billion from N32.230 billion in the corresponding period of 2025, while gross earnings increased by 26.72% to N320.220 billion.

Key Highlights (Q1 2026 vs Q1 2025) 

• Gross earnings: N320.220 billion, up 26.72% YoY
• Interest income: N286.136 billion, up 33.48% YoY
• Net interest income: N168.349 billion, up 92.41% YoY
• Net impairment losses: N12.308 billion, up 29.29% YoY
• Net fee and commission income: N24.471 billion, up 30.31% YoY
• Operating profit: N86.847 billion, up 146.37% YoY
• Earnings per share: N4.63, up 42.46% YoY from N3.25
• Total assets: N7.964 trillion, up 4.36% from December 2025
• Customer deposits: N4.676 trillion, up 5.83% from December 2025
• Shareholders’ funds: N1.139 trillion, up 36.35% from December 2025

Driving the numbers 

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

Interest income rose by 33.48% YoY to N286.14 billion, driven mainly by a sharp increase in income from cash and cash equivalents and stronger returns from FVOCI investment securities.

• The biggest growth came from cash and cash equivalents, where income surged to N62.37 billion from N3.71 billion. This lifted its contribution to total interest income to 21.80%, compared with just 1.73% in Q1 2025.
• Despite a 4.32% decline, loans and advances to customers remained the largest contributor, generating N143.80 billion, or 50.26% of total interest income. This shows that FCMB’s core lending business still anchored interest earnings, even though the strongest growth came from liquid assets and securities.
• Investment securities also supported the expansion, with FVOCI income rising 86.31% to N38.46 billion, while amortized-cost securities increased modestly to N41.51 billion.

Overall, the mix shows that FCMB’s Q1 earnings growth was driven more by balance sheet yield optimization than loan-book expansion

On the interest expense side, interest expense declined to N117.79 billion from N126.87 billion, helping to amplify the growth in net interest income.

• The decline was driven primarily by lower funding costs from deposits from banks, where interest expenses fell by 37.28% to N16.79 billion from N26.77 billion.
• Interest expense on borrowings also declined by 12.19% to N22.64 billion, while interest on debt securities issued dropped by 18.80% to N3.28 billion.
• Customer deposits remained the largest funding cost, accounting for 61.27% of total interest expense.
• Interest paid on customer deposits increased to N72.17 billion from N67.50 billion, reflecting growth in the deposit base to N4.68 trillion.
• However, the increase was more than offset by the sharp reduction in costs associated with bank deposits and borrowings.

The mix suggests FCMB relied less on relatively expensive wholesale funding sources and more on customer deposits, which contributed to the reduction in overall funding costs.

As a result, net interest income surged by 92.41% to N168.35 billion from N87.50 billion, making it the single largest driver of the group’s 148.39% increase in pre-tax profit

The group also recorded stronger non-interest income. Net fee and commission income increased to N24.471 billion from N18.779 billion, supported by growth in fee and commission income to N27.872 billion.

• However, trading activities weighed earnings. FCMB recorded a net trading loss of N3.424 billion compared with a net trading gain of N14.344 billion in Q1 2025.
• The group also reported other losses of N12.988 billion compared with a loss of N440 million in the prior year.

Together, these items resulted in a net loss position of N16.412 billion from trading and other gains, compared with a net gain of N13.903 billion a year earlier.

Despite these headwinds, other income surged to N9.636 billion from N140 million, helping to offset the weakness in trading income.

Operating expenses rose across major cost lines.

• Personnel expenses increased to N27.595 billion from N22.754 billion; general and administrative expenses rose to N32.358 billion from N29.475 billion, while other operating expenses increased to N21.966 billion from N19.459 billion.
• Depreciation and amortization also rose to N4.969 billion from N3.860 billion. Nevertheless, the strong growth in core banking income more than compensated for the higher cost base.

The group also booked impairment charges of N12.308 billion, up from N9.520 billion in Q1 2025, reflecting a more cautious credit-loss provisioning stance.

On the balance sheet, total assets increased to N7.964 trillion from N7.631 trillion at the end of 2025.

• Cash and cash equivalents rose to N1.810 trillion from N1.299 trillion, while investment securities increased to N2.170 trillion from N2.036 trillion.
• Customer deposits grew to N4.676 trillion from N4.419 trillion, reinforcing the group’s funding base.
• Shareholders’ funds crossed the N1 trillion mark, rising to N1.139 trillion from N835.430 billion, supported by earnings growth and fresh capital raised during the period.

Market reaction

FCMB shares were trading at N11.95 as of 11:55 a.m. today, up 6.70% from the previous closing price of N11.20. The stock touched an intraday high of N12.30 and a low of N11.25, with 76.73 million shares traded.

As of last week’s close, at N11.20, FCMB was down 7.05% year-to-date, including a 4.3% decline in the first week of June.

However, today’s intraday gain has narrowed those losses, though the final market reaction will depend on the closing price.