Wema Bank’s Financial Triumph: A 116% Leap to N222bn

Wema Bank’s Financial Triumph: A 116% Leap to N222bn

Wema Bank Plc announced its unaudited financial results for the year ending December 31, 2025, showing a pre-tax profit of N222.07 billion, which is a 116.3% rise from N102.52 billion in 2024. Net profit after tax increased significantly to N193.19 billion, up by 123.54% compared to N86.28 billion the year before.

This can be attributed to the 51% growth in gross earnings to N653.28 billion, driven by strong revenue growth from interest income, which was the major contributor to the increase.

Key highlights (FY 2025 vs FY 2024) 

• Gross earnings: N653.28 billion, up 51% YoY
• Interest income: N577.10 billion, up 63.08% YoY
• Interest expense: N216.99 billion, up 22.31% YoY
• Net interest income: N360.10 billion, up 103.35% YoY
• Net impairment losses on financial instruments: N22.96 billion, up 6.1% YoY
• Earnings per share (EPS): N7.08, up 46.5% YoY
• Total assets: N5.06 trillion, up 41% YoY
• Loans and advances to customers: N1.75 trillion, up 45% YoY
• Customer deposits: N3.28 trillion, up 30% YoY
• Equity: N621.70 billion, up 143.6% YoY

What the data are saying 

Wema Bank’s revenue growth was driven primarily by a significant increase in interest income, which rose by 63.08% to N577.10 billion, accounting for 88.3% of the bank’s gross earnings.

• The growth was largely fueled by strong performance in income from loans and advances to customers, which increased by 48% to N345 billion. This was the major contributor to the bank’s interest income, accounting for 59% of total interest income.
• Investment securities followed, contributing 35% to the interest income.
• Net interest income grew by 103.35% to N360.10 billion and can be attributed to an increase in loans and advances, along with a successful strategy in managing interest expenses.
• Despite interest expenses growing by 22.31% to N216.99 billion, the proportion of interest expenses to gross earnings decreased to 33% in 2025, down from 41% in 2024.

This reduction highlights improved efficiency in managing costs relative to earnings. However, the increase in interest expenses was primarily due to higher customer deposits, which accounted for 58% of interest expenses.

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At the same time, interest income grew significantly, contributing 88% of gross earnings, reflecting the bank’s strong performance in its core lending and investment activities.

Despite the strong growth in net interest income, the bank faced an increase in net impairment losses, which rose by 6.1% to N22.96 billion.

• This accounted for 6.4% of the bank’s net interest income, indicating a slight increase in provisions for non-performing loans.

Non-interest income, which includes fee and commission income and trading income, contributed significantly to the bank’s earnings.

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• Fee and commission income increased by 8.2% to N57.92 billion, driven by higher activity in digital and transactional services, while trading income showed strong growth, reflecting the positive contribution of the bank’s trading portfolio.

In terms of the balance sheet, total assets grew by 41% to N5.06 trillion, with customer deposits funding a significant portion, accounting for about 64% of the balance sheet size.

• The bank’s equity surged by 143.6% to N621.70 billion, driven by substantial increases in share premium and retained earnings, which grew by 326.8% and 164.3%, respectively.
• However, equity still represents just 12% of total assets, indicating the bank’s strong reliance on customer deposits for funding.

Loans and advances to customers, which grew by 45%, now make up approximately 34% of the balance sheet size, reflecting the bank’s expansion in lending activities.

Wema Bank’s 2025 performance highlights strong growth in both revenue and profitability, with interest income being the primary driver of the bank’s success.

• The 2025 performance stood out with profit after tax surpassing its 5-year cumulative profit
• Also, the dividend trend shows that Wema Bank has progressively increased its dividend payouts over the years, reflecting growing profitability and shareholder returns.
• The consistent increase is a positive signal of the bank’s strong financial performance and its ability to return value to shareholders.
• In terms of share price performance, Wema Bank has been a top performer, particularly within the banking sector.

It was ranked as the best-performing bank in 2025, with a Year-to-Date (YtD) gain of 124%, closing at N20.40. The stock has continued its upward trend, gaining 11% so far in the current year.