Wema Bank's half-year earnings soar to N131.4bn, driven by surge in interest revenue

Wema Bank Plc's profit after tax surged 50.1 per cent to N131.4bn in the first half of 2026, fueled by a significant increase in interest income and loan expansion, despite the impact of a larger share base resulting from its recapitalisation.

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The bank's unaudited financial results for the six months ended 30 June 2026 revealed a notable rise in profit after tax, from N87.50bn in the corresponding period of 2025 to the current figure.

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Profit before tax experienced a substantial climb of 53.7 per cent to N154.56bn, up from N100.60bn, while gross earnings saw a 36.9 per cent growth to N415.09bn.

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The robust earnings performance was primarily driven by a 42.7 per cent increase in interest income, which rose to N342.64bn from N240.12bn, reflecting enhanced returns from lending activities and investment assets.

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During the period, Wema Bank also reinforced its balance sheet, with total assets increasing by 13.5 per cent to N5.76tn as of 30 June 2026, compared to N5.07tn at the end of December 2025.

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Loans and advances to customers expanded by 21.7 per cent to N2.12tn, while customer deposits grew by nearly five per cent to N3.45tn from N3.29tn, providing additional funding for the bank's expanding lending operations.

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The results highlight Wema Bank's sustained earnings momentum following its recapitalisation, with stronger interest income supporting profitability and an expanding loan book driving growth.

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According to Segun Adegun, a financial expert based in Lagos, "Despite this, you must note that the enlarged share capital of the bank is expected to weigh on earnings per share in the near term, even as the stronger capital base positions the bank for future expansion.