Wema Bank First-Half Profit Rises 50% as Interest Income and Treasury Gains Surge

Wema Bank Plc reported a 50.1% year-on-year increase in net profit for the first half of 2026, driven by higher interest yields on customer loans and a sharp expansion in fixed income trading revenues.

Profit after tax reached ₦131.37 billion for the six months through June 30, up from ₦87.51 billion in the prior-year period. Gross earnings expanded 36.9% year-on-year to ₦415.09 billion, supported by a 42.7% surge in interest income to ₦342.64 billion, as the Tier-2 Nigerian lender capitalized on elevated yields across its risk assets and government securities.

Operating income rose 39.3% to ₦267.07 billion, while pre-tax profit closed at ₦154.56 billion, up 53.7% from ₦100.59 billion in H1 2025.

Treasury Gains Offset Fee Contraction

Net interest income expanded 51.3% year-on-year to ₦195.45 billion. Asset quality remained stable, with loan impairment charges standing at a low ₦831.1 million, leaving net interest income after provisions at ₦194.62 billion.

Non-interest revenue presented a mixed operational picture:

• Trading Income Surge: Net trading revenue rose nearly sevenfold (+657.1%) to ₦21.53 billion, up from ₦2.84 billion in H1 2025. The performance was led by Treasury bills trading income, which jumped to ₦16.76 billion from ₦1.16 billion, while fixed income securities trading generated ₦3.13 billion.

• Fee Income Compression: Net fee and commission income declined 20.5% to ₦36.09 billion. The contraction was primarily driven by lower electronic banking fees, which fell to ₦7.14 billion from ₦20.93 billion, while foreign exchange transaction fees moderated to ₦3.77 billion.

Operating expenses expanded modestly across personnel costs (₦42.84 billion) and general administration overheads (₦60.0 billion), while depreciation charges rose to ₦9.0 billion.

Balance Sheet Expansion

Total assets grew 13.4% during the six-month period to reach ₦5.75 trillion, up from ₦5.07 trillion at year-end 2025.

Gross loans and advances to customers expanded 21.2% to ₦2.11 trillion, reflecting active risk asset creation across retail and commercial lending segments. Customer deposits reached ₦3.45 trillion, up 4.9% from ₦3.29 trillion at the end of December 2025, providing sustained liquidity support for the bank’s core balance sheet operations.

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