H1 2026: FCMB Group declares 137.24% increase in net impairment losses to N85.9bn
FCMB Group Plc on Monday announced its united result and accounts for half year (H1) ended June 30, 2026 with 13724 per cent increase in net impairment losses on financial instruments at N85.9 billion over N36.22 billion reported half year ended June 30, 2025.
The group in a statement said the front-loaded a decisive clean-up of stage 2 loans, including approximately N63.4 billion of write-offs, stressing that the move reduced the Nigerian Banking subsidiary’s NGAAP non-performing loan ratio to 5.2per cent as at June 2026, restoring it closer to regulatory limits.
However, the group’s profit Before Tax grew by 99per cent to N157.3 billion for H1 2026 from N79.1 billion in H1 2025, extending the growth momentum recorded in FY 2025. Profit After Tax increased by 90per cent to N139.9 billion (H1 2025: N73.4 billion), while annualised Return on Average Equity and Return on Average Assets strengthened to 27.9per cent and 3.5per cent respectively (H1 2025: 20.6per cent and two per cent).
Gross earnings grew by 27.8per cent to N676.2 billion for H1 2026 from N529.2 billion in H1 2025, driven by a 31.0per cent growth in interest income and a 22per cent growth in earning assets from N4.90 trillion to N5.98 trillion.
Net Interest Income grew by 71.8per cent to N356.3 billion (H1 2025: N207.4 billion), as higher interest income was reinforced by a 2.7per cent Year-on-Year decline in interest expense, reflecting an improved low-cost deposit mix and lower cost of funds. This lifted Net Interest Margin to 11.2per cent for 1H 2026 (H1 2025: 9.1 per cent).
Operating expenses grew by just 12.3per cent to N172.0 billion (H1 2025: N153.2 billion), reflecting disciplined cost management, easing inflation and the efficiency benefits of digital transformation.
Cost-to-Income Ratio improved sharply to 41.4per cent for H1 2026 (H1 2025: 57.0per cent), extending the improvement from 53.8per cent in 2025FY.
Speaking on the H1 2026 results, the Group Chief Executive Officer, Ladi Balogun in a statement said:“Our first-half performance demonstrates the strength of our recapitalised and diversified business model.
“We delivered record profitability despite accelerating the normalisation of asset quality towards regulatory thresholds, reflecting our commitment to building a stronger balance sheet for long-term growth.
“Expanding net interest margins, an improved low-cost deposit mix, disciplined cost management, and growing contributions from our non-banking businesses continue to enhance the quality and sustainability of our earnings. We remain firmly on track to deliver a Return on Equity (RoE) of over 25per cent for the 2026 financial year”.
