By Folake Emem-Akpan
Introduction
Our analysis of FCMB Plc’s 2025 annual results shows that it enjoyed immense profitability during the course of the year, like many other Nigerian banks. It was able to step up the level of its core banking operations, deploying a slightly higher level of loans and advances, as well as enjoying an increased deposit base.
Net interest margin, a bank’s true test of effectiveness, improved during the course of the year, as did the bank’s profit margin, which is its ability to retain profit from its operations.
With a profit for the year that was higher than that of the prior year, the group chose to pay shareholders a lower level of dividend than it did in the preceding year, choosing to retain more of its profit for the next year’s operations.
Core operations
The 2025 FY was an excellent year for FCMB just like was the case with many other Nigerian banks. It crossed the trillion Naira gross revenue mark alongside the likes of GTCO, Zenith Bank, and UBA. Its revenue for the year was N1.13 trillion, 42.5 per cent higher than the N794.4 billion earnings it recorded in the preceding year. To achieve the level of earnings it did, it expanded its core banking operations during the course of the year and also stepped up its non-core banking businesses.
The bank also had a better interest margin of 50.3 per cent, higher than 36.3 per cent in the prior year, indicative of better efficiency in its core business of lending and borrowing. This better net interest margin was perpetuated primarily because of the widening gap between its average lending rate and average interest rate (cost of deposit).
Average lending rate jumped to 42.4 per cent from the preceding year’s 26.4 per cent, while average interest rate also increased to 9.2 per cent from 7.7 per cent. This means that the bank paid its depositors a higher interest (on the average) but charged its lenders a much higher interest rate (on the average).
Pre tax profit was N202.1 billion, 80.6 per cent better than the N111.9 billion of 2024, while profit after tax for the year, at N177.3 billion, was a whopping 141.9 per cent more than N73.3 billion profit recorded in the preceding year.
Earnings per share, was higher than that of the prior year, closing at 399 kobo, as compared to 238 kobo before. Dividend per share however decreased to 35 kobo in 2025 from 55 kobo in 2024, meaning that the group decided to retain a larger portion of its earnings in 2025.
Profitability ratios
The bank expectedly recorded better results with respect to profitability in 2025. With a higher revenue as well as a higher profit, the bank recorded a profit margin that was better than that of 2024. At 17.9 per cent, the bank’s profit margin was higher than the 14.1 per cent recorded in the prior year and is to be commended. What this means is that for every N100 earned by the bank in the course of the year, N17.90 made it to the pre-tax profit position, as compared to N14.10 for the preceding year.
The bank also squeezed as much profit as was possible from assets, as assets deployed earned more in 2025 than it did in 2024. Return on assets (ROA) for the year stood at 2.6 per cent in 2025, as compared to 1.6 per cent in 2024. For the 2025 financial year, FCMB deployed equity valued at N836.4 billion, and for every N100 equity deployed, the bank made an after-tax profit of N21.10, an improvement over the profit of N10.60 made in 2024.
With more employees in 2025 than in the previous year, earnings per employee improved to N229.5 million on the average, up from N209.3 million in 2024. This is an indication of improved employee productivity and company efficiency.
Other ratios
FCMB had a better capital adequacy standing in 2025 than it did in 2024, meaning that the bank did better in its primary business of giving out loans. FCMB’s capital adequacy improved in 2025 to 35.4 per cent, higher than 29.2 per cent in the prior year.
For the 2025 financial year, the bank recorded a slightly lower proportion of loans classified as non-performing when compared to the prior year’s. The 5.09 per cent ratio was lower than 5.95 per cent in the preceding year, and continues to be low enough to suggest an excellent recovery strategy for loans.
The bank had a debt-to-equity ratio of 8.1, meaning that it is using N8.10 of liabilities in addition to each N1.00 of stockholder’s equity. In other words, the bank is using N9.10 of total capital for every N1.00 of equity capital, lower than the N10.20 it did in the erstwhile year.
Current ratio was 0.99, very close to a perfect 1.0, suggesting that FCMB has enough short-term resources to pay its immediate bills.
Sustainable growth
FCMB paid its shareholders a lower level of dividend in 2025 than it did in 2024. Shareholders received a total dividend of 35 kobo, lower than 55 kobo in the prior year. Coupled with a higher profit for the year, this caused the retention ratio in 2025 to be higher than that of 2024. Meanwhile, assets/equity ratio was lower than that of the prior year while asset turnover improved.
Analysis shows that sustainable growth for 2025 was 22.0 per cent, higher than 12.5 per cent in 2024, and this means that the bank’s growth ceiling, utilising only its own source of funding for growth, improved. Meanwhile, actual growth was 42.5 per cent. The actual growth was lower than sustainable growth, meaning that FCMB grew above its ceiling in 2025.
Unaudited results Q1 2026
The group’s first quarter one results for 2026 shows that it is on a good track and will most likely end the year in good record just like 2025. Turnover for Q1 2026 was 26.7 per cent better than the same period in 2025 while after tax profit for the same Q1 2026 was a whopping 137.6 per cent better than that of Q1 2025.
Unique strategies
FCMB Group differentiates itself from other banks through an ecosystem-driven strategy that combines commercial banking with pensions, investment banking, wealth management, consumer finance and microfinance. It prioritises SMEs through financing, advisory services and mentorship while expanding financial inclusion for women, youth and underserved communities.
The Group leverages digital innovation to deliver efficient lending, payments and customer service, and integrates sustainability into its operations and lending practices. This diversified, technology-driven and customer-centric approach strengthens profitability, broadens revenue streams and fosters long-term customer loyalty, making FCMB one of Nigeria’s most resilient and innovative financial services groups.
Conclusion
Last year has been a good year for FCMB. It remains to be seen if the 2026 financial year will end on the same note.