Wema Bank Profit Rises to ₦63.13 Billion as Interest Income Drives Strong Q1 2026 Performance

Wema Bank Plc reported a profit after tax of ₦63.13 billion for the first quarter (Q1) ended March 31, 2026, representing a 76.1 percent increase from ₦35.85 billion recorded in the corresponding period of 2025.

Interest income rose sharply to ₦179.96 billion from ₦110.08 billion on the back of improved yield on assets and expansion in the bank’s earning portfolio.

However, interest expense also increased to ₦80.53 billion from ₦53.44 billion, driven by higher funding costs.

Net interest income grew to ₦99.43 billion from ₦56.64 billion. After accounting for impairment losses on financial assets of ₦1.44 billion, net interest income after impairment settled at ₦97.99 billion, up from ₦54.82 billion in Q1 2025.

Non-interest income declined during the period as net fee and commission income dropped to ₦17.39 billion from ₦25.05 billion, while net gain on fair value through profit or loss (FVTPL) investment securities fell to ₦1.17 billion from ₦2.19 billion. Other income also declined to ₦472.07 million from ₦561.61 million.

However, net trading income rose significantly to ₦5.83 billion from ₦1.50 billion, partially offsetting the decline in other non-interest income lines.

Overall, operating income increased to ₦122.85 billion from ₦84.12 billion, representing a 46.0 percent year-on-year growth.

Operating expenses rose during the period. Personnel expenses increased to ₦18.03 billion from ₦12.98 billion, while depreciation and amortisation rose to ₦4.36 billion from ₦2.55 billion.

Other operating expenses remained relatively stable at ₦27.90 billion compared to ₦27.38 billion in the prior year.

Profit before tax rose to ₦72.57 billion from ₦41.21 billion, while income tax expense increased to ₦9.43 billion from ₦5.36 billion.

Profit after tax settled at ₦63.13 billion with total comprehensive income rising to ₦63.47 billion, supported by a ₦338.12 million gain in other comprehensive income.

On the balance sheet, total assets increased to ₦5.23 trillion from ₦5.07 trillion as at December 31, 2025, driven by growth in loans and advances to customers, which rose to ₦1.86 trillion from ₦1.74 trillion.

Customer deposits increased to ₦3.41 trillion from ₦3.29 trillion, reflecting improved deposit mobilisation.

Cash and cash equivalents rose to ₦1.08 trillion from ₦940.81 billion, while restricted deposits with the Central Bank of Nigeria increased to ₦974.02 billion from ₦919.82 billion.

Investment securities showed mixed performance. Financial assets measured at fair value through other comprehensive income increased to ₦43.05 billion from ₦15.82 billion, while those measured at fair value through profit or loss declined significantly to ₦36.51 billion from ₦196.60 billion.

Total liabilities rose to ₦4.55 trillion from ₦4.45 trillion, driven by growth in customer deposits and current tax liabilities, while other liabilities declined to ₦937.74 billion from ₦1.01 trillion.

Shareholders’ equity strengthened to ₦683.95 billion from ₦620.47 billion, supported by growth in retained earnings, which increased to ₦278.20 billion from ₦215.07 billion.

The Q1 2026 performance highlights Wema Bank’s strong earnings momentum driven by interest income growth, although rising funding costs and declining non-interest income components remain key factors shaping overall profitability.