Wema Bank Plc reported a pre-tax profit of N154.56 billion for the six months ended June 30, 2026, representing a 53.65% increase year-on-year from N100.59 billion in the corresponding period of 2025.
Profit after tax rose 50.12% to N131.37 billion from N87.51 billion, while earnings per share dropped to N6.55, from N7.13, reflecting share dilution effects during the period.
This marks one of the bank’s strongest half-year performances yet, driven largely by robust loan growth, a sharp rebound in trading income, and improved net interest margins.
- Interest Income: N342.64 billion (Up 42.70% YoY from N240.12 billion).
- Net Interest Income: N195.45 billion (Up 51.25% YoY from N129.22 billion).
- Net Fee and Commission Income: N36.09 billion (Down 20.48% YoY from N45.38 billion).
- Net Trading Income: N21.53 billion (Up 657.42% YoY from N2.84 billion).
- Operating Income: N267.07 billion (Up 39.27% YoY from N191.77 billion).
- Pre-tax profit: N154.56 billion (Up 53.65% YoY from N100.59 billion).
- Profit after tax: N131.37 billion (Up 50.12% YoY from N87.51 billion).
- Earnings per share (EPS): N6.55.
- Total assets: N5.76 trillion (Up 13.51% from N5.07 trillion on 31 December 2025).
- Customer Deposits: N3.45 trillion (Up 4.96% from N3.29 trillion on 31 December 2025).
- Shareholders’ Equity: N700.45 billion (Up 12.89% from N620.47 billion).
The strong rise in pretax profit was underpinned by robust growth across the bank’s core income lines, even as fee income came under pressure.
- Interest income rose 42.70% to N342.64 billion, while interest expense climbed a slower 32.72% to N147.19 billion, allowing net interest income to expand 51.25% to N195.45 billion.
- Net trading income surged 657.42% to N21.53 billion from N2.84 billion, marking one of the standout drivers of the half-year result and pointing to significant treasury trading gains during the period.
- Net impairment loss on financial assets rose to N831.11 million from N532.54 million, though this remained modest relative to the scale of income growth, leaving net interest income after impairment up 51.19% to N194.62 billion.
- Net fee and commission income declined 20.48% to N36.09 billion from N45.38 billion, while other income also fell 19.46% to N10.68 billion, reflecting weaker electronic banking and commission-related revenue.
- Operating expenses rose across board, with personnel expenses up 37.82% to N42.85 billion and other operating expenses up 10.58% to N60.61 billion, reflecting continued pressure from inflation, technology investment, and regulatory costs.
Despite the sharp rise in personnel costs, the scale of income growth was more than sufficient to lift operating income by 39.27% to N267.07 billion, translating into the 53.65% jump in pretax profit for the half year.
Balance sheet performance
Total assets expanded to N5.76 trillion, up 13.51% from N5.07 trillion at the end of 2025, driven mainly by a 21.73% rise in loans and advances to customers, which grew to N2.12 trillion from N1.74 trillion.
- Total liabilities rose 13.61% to N5.06 trillion, with deposits from banks emerging at N158.77 billion, compared with zero at December 2025.
- Shareholders’ equity increased 12.89% to N700.45 billion, supported by retained earnings of N296.29 billion, up from N215.07 billion, even after the bank paid out N50.15 billion in dividends during the period.
- Gross loans expanded to N2.18 trillion from N1.80 trillion, led by term loans (N1.92 trillion, up from N1.59 trillion), overdrafts (N230.48 billion, up from N187.91 billion), and finance leases (N30.56 billion, up from N20.66 billion).
- Investment securities rose 6.19% to N1.42 trillion, while cash and cash equivalents grew 8.95% to N1.03 trillion.
Customer deposits rose 4.96% to N3.45 trillion, supported by retail savings deposits of N529.99 billion and corporate and other deposits of N2.45 trillion.
Total impairment allowance rose to N62.87 billion from N58.39 billion reflecting its loan growth during the review period.
