Wema Bank’s profit rises to N193bn as interest income, deposits surge

Wema Bank Plc ended 2025 with its after-tax profit rising by 124 percent to N193.2 billion, from N86.3 billion in the previous year, driven by growth in interest income, an expanding loan book, and stronger operating cash flows.

According to the bank’s unaudited financial statement for the year ended December 31, 2025, the lender’s gross earnings rose to about N653.3 billion, compared with N433.4 billion in 2024, reflecting higher yields on loans and investment securities amid Nigeria’s elevated interest rate environment.

Interest income jumped to N577.1 billion from N354.6 billion a year earlier, supported by a significant expansion in loans and advances to customers, which rose 45 percent to N1.75 trillion from N1.20 trillion in 2024. Income from investment securities also increased, highlighting the bank’s active balance sheet positioning.

Although interest expense rose to N217.0 billion from N177.6 billion, largely due to higher costs on customer deposits and borrowings, net interest income still more than doubled to N360.1 billion, up from N177.1 billion in the prior year.

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After accounting for impairment charges of N23.0 billion on financial assets, net interest income stood at N337.1 billion, compared with N155.4 billion in 2024, underscoring improved asset yield and scale.

Non-interest income remained resilient, with net fee and commission income increasing modestly to N57.9 billion from N55.6 billion. Growth was largely driven by electronic banking fees, account maintenance charges, and management fees, reflecting the bank’s continued push into digital banking and transaction-based services.

However, other income declined to N8.9 billion from N17.3 billion, mainly due to lower foreign exchange revaluation gains, while net trading income improved to N8.4 billion from N3.4 billion in 2024.

Overall operating income surged to N413.3 billion, nearly double the N234.2 billion recorded in the previous year.

Operating expenses also rose in line with business expansion and inflationary pressures. Personnel costs increased to N70.2 billion from N45.5 billion, while other operating expenses climbed to N108.6 billion from N77.5 billion, driven by higher AMCON levy, technology and digital channel costs, service charges, and general administrative expenses.

Despite the cost increase, profit before tax more than doubled to N222.1 billion, from N102.5 billion in 2024, reflecting strong revenue growth outpacing expenses.

After income tax expense of N28.9 billion, profit for the year settled at N193.2 billion.

Wema Bank’s total assets grew by 41 percent to N5.06 trillion as at December 2025, from N3.59 trillion in the previous year, supported by growth in cash balances, loans, and investment securities.

Cash and cash equivalents surged to N934.8 billion from N278.9 billion, reflecting strong liquidity and higher operating inflows.

Investment securities rose to about N1.34 trillion from N900.2 billion, while customer deposits increased 30 percent to N3.28 trillion from N2.52 trillion in 2024, indicating improved customer confidence and funding base.

Shareholders’ equity more than doubled to N621.7 billion from N256.4 billion, boosted by strong retained earnings and fresh capital raised through rights issues and special placements during the year.

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Net cash from operating activities soared to N982.9 billion, up from N311.7 billion in 2024, driven by higher interest receipts, increased deposits, and growth in other liabilities. This strong cash generation improved the bank’s liquidity position and supported asset expansion.

The sharp rise in earnings translated into stronger performance metrics. Return on equity (ROE) improved significantly to about 31 percent, compared with roughly 34 percent previously on a much smaller equity base, while earnings per share rose to 708 kobo from 483 kobo in 2024.