FCMB Diversification Pays Off as Non-Banking Businesses Contribute 26% of Group Earnings

FCMB Group Plc’s strategy of building a diversified financial services business gained further momentum in the first half of 2026, with its non-banking subsidiaries contributing more than one-quarter of the group’s total profit before tax.

The group’s unaudited financial results released on Monday showed that its non-banking businesses collectively contributed 26 per cent of profit before tax, generating N40.7 billion, representing a 185 per cent year-on-year increase and reinforcing FCMB’s growing earnings diversification beyond traditional banking.

The banking business remained the largest contributor, accounting for 74 per cent of profit before tax after posting an 80 per cent increase to N116.6 billion. The performance was driven by higher net interest margins, a stronger low-cost deposit mix and improved operating efficiency.

Among the non-banking subsidiaries, Credit Direct Limited, the group’s consumer finance business, delivered the strongest performance.

Profit before tax rose by 92 per cent to N17.7 billion, accounting for 11 per cent of group earnings.

FCMB attributed the growth to technology-driven loan origination, underwriting and distribution, which continued to expand access to consumer credit while improving operational efficiency.

The group’s investment management businesses—comprising FCMB Pensions, FCMB Asset Management and FCMB Trustees—also recorded solid growth.

Profit before tax increased by 50 per cent to N5.7 billion, supported by higher assets under management and increased fee income as more customers entrusted their retirement savings and investment portfolios to the group.

Investment banking operations also posted a strong recovery.

FCMB Capital Markets and CSL Stockbrokers grew profit before tax by 76 per cent to N1.9 billion, benefiting from increased activity across the debt and equity capital markets.

The group also reported continued expansion in its digital businesses, with revenues from payments, lending and wealth management rising to N89.1 billion, underscoring the growing contribution of technology-driven financial services to overall earnings.

Commenting on the results, Group Chief Executive Officer, Ladi Balogun, said the performance demonstrated the resilience of FCMB’s diversified operating model.

“Our first-half performance demonstrates the strength of our recapitalised and diversified business model,” he said.

Balogun added that the growing contribution from the group’s non-banking businesses was improving the sustainability of earnings.

“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.”

He expressed confidence that the group remained on course to exceed its profitability target for the year.

“We remain firmly on track to deliver a Return on Equity (RoE) of over 25% for the 2026 financial year,” Balogun said.