LAGOS: FCMB Group Plc is projecting a profit after tax of N104.61 billion for the fourth quarter of 2026, with interest income expected to remain the major driver of the financial group’s earnings.
The projection is contained in an internal group earnings forecast prepared ahead of the close of the third quarter. The company stressed that the figures are management estimates and do not represent audited or publicly released fourth-quarter results.
Under the forecast, FCMB Group expects to record gross earnings of N368 billion during the quarter.
Interest income is projected to account for N321.91 billion, representing about 87 per cent of the group’s estimated gross earnings.
Interest expenses are expected to stand at N140.25 billion, leaving the group with projected net interest income of approximately N181.66 billion.
The forecast also estimates N33.86 billion in transaction commission income, while earnings from securities trading are projected at N7.56 billion.
Foreign exchange earnings are expected to contribute N2.26 billion, with other income estimated at N2.41 billion during the quarter.
On the expenditure side, FCMB Group projects loan-loss provisions of N13.21 billion and operating expenses of N86.25 billion.
Based on the estimates, the financial group is expected to record a profit before tax of N128.29 billion.
After accounting for an estimated tax charge of N23.68 billion, profit after tax is projected to reach N104.61 billion.
The group’s cash position is also expected to strengthen by the end of the year.
According to the forecast, operating cash flow before working-capital changes is expected to stand at N213.78 billion. However, a projected working-capital movement of N190.25 billion is expected to reduce net cash generated from operations to N22.17 billion.
Investing activities are projected to generate N368.32 billion, while financing activities are expected to record an outflow of N48.71 billion.
As a result, FCMB Group projects that its cash and cash equivalents could rise from N677.49 billion at the beginning of the quarter to approximately N1.02 trillion by year-end.
The Q4 projection comes against the backdrop of a strong financial performance recorded by FCMB Group in the first half of 2026.
The group’s unaudited results for the six months ended June 2026 showed that profit before tax rose to N157.30 billion, compared with N79.12 billion recorded during the corresponding period of the previous year.
Profit for the period also climbed to N139.86 billion, reflecting significant growth in the group’s earnings.
FCMB Group attributed the performance to growth across its major business segments, including banking, consumer finance, investment banking and investment management.
The group’s first-half profit translates to an average quarterly profit of about N69.93 billion.
Against this benchmark, the projected Q4 profit after tax of N104.61 billion would represent a significantly stronger quarterly performance.
However, the company’s projection remains an estimate and should not be interpreted as its actual fourth-quarter financial result
The latest forecast highlights the continued importance of interest income to FCMB Group’s earnings outlook.
With projected interest income of N321.91 billion accounting for the overwhelming majority of gross earnings in the quarter, the group’s performance will remain closely linked to lending activity, interest rates and the broader operating environment in Nigeria’s financial sector.
At the same time, income from transaction commissions, securities trading, foreign exchange and other activities is expected to provide additional support to the group’s overall earnings.
The projected figures suggest that FCMB Group expects to sustain the momentum recorded in the first half of the year while strengthening its liquidity position.
The group’s ability to grow earnings while managing interest expenses, loan-loss provisions and operating costs will remain critical to its full-year financial performance.
