For institutional investors, a bank’s ability to keep operating costs under control while growing revenue remains a key indicator of long-term franchise strength. FCMB Group Plc’s latest audited financial statements show notable progress on this front, with its cost-to-income ratio (CIR) improving to 53.75 percent in 2025 from 59.90 percent in 2024. The improvement reflects stronger operating leverage despite persistent inflationary pressures on business costs.
Analysts said the decline in the cost-to-income ratio indicates that the group’s revenue expanded at a much faster pace than its operating expenses, marking an important step toward the widely watched 50 percent CIR benchmark. They noted that institutional investors typically view this level of efficiency as a hallmark of a resilient and sustainably profitable banking franchise.
According to Proshare, the efficiency gain is particularly impressive given the significant increase in operating costs during the year. Total operating expenses rose by 43.41 percent to N328.49 billion, driven largely by a 35.16 percent increase in personnel costs as the bank adjusted employee compensation to reflect inflationary realities.
Related News FCMB Group reports N202.1bn pre-tax profit for 2025, N87bn in Q1'26 FCMB Group set to undertake public offer FCMB Group sees 23% rise in H1 2025 pre-tax profit
