Wema Bank H1 2026 pretax profit hits N154.56 billion, up 53.65%
By Aboki Forex —
Wema Bank Plc posted a pretax profit of N154.56 billion for the six months ended June 30, 2026, a 53.65% jump from N100.59 billion in the same 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 due to share dilution.
What drove the profit surge
The strong result was driven by robust loan growth, a sharp rebound in trading income, and improved net interest margins. Interest income climbed 42.70% to N342.64 billion, and interest expense rose a slower 32.72% to N147.19 billion. That allowed 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, pointing to significant treasury trading gains. Net impairment loss on financial assets rose to N831.11 million from N532.54 million, but remained modest relative to income growth. Net fee and commission income declined 20.48% to N36.09 billion, while other income fell 19.46% to N10.68 billion.
Operating expenses rose. Personnel costs increased 37.82% to N42.85 billion, and other operating expenses went up 10.58% to N60.61 billion, reflecting inflation, technology investment, and regulatory costs. Despite that, operating income grew 39.27% to N267.07 billion, translating into the 53.65% pretax profit jump.
Balance sheet highlights
Total assets expanded 13.51% to N5.76 trillion from N5.07 trillion at December 2025, driven by a 21.73% rise in loans and advances to customers, which hit N2.12 trillion. Total liabilities rose 13.61% to N5.06 trillion. Shareholders' equity increased 12.89% to N700.45 billion, supported by retained earnings of N296.29 billion, up from N215.07 billion, after the bank paid N50.15 billion in dividends.
Gross loans expanded to N2.18 trillion from N1.80 trillion, led by term loans (N1.92 trillion), overdrafts (N230.48 billion), and finance leases (N30.56 billion). Investment securities rose 6.19% to N1.42 trillion, and cash and cash equivalents grew 8.95% to N1.03 trillion. Customer deposits increased 4.96% to N3.45 trillion, with retail savings deposits of N529.99 billion and corporate deposits of N2.45 trillion. Total impairment allowance rose to N62.87 billion from N58.39 billion.
Market reaction and outlook
Despite the impressive earnings, Wema Bank shares traded almost flat at about N31.65 during intra-day on Wednesday, July 29. The stock began 2026 at N20.40 and has gained 55.2% year-to-date, ranking 52nd on the NGX.
Wema Bank delivered one of its strongest half-year performances, with pretax profit up more than 53%. Higher interest income, loan growth, and a treasury trading rebound powered the result. Cost escalation and weaker fee income remain areas to watch in the second half.