Wema Bank Plc has announced its unaudited financial results for the first quarter ended March 31, 2026. The bank reported a pre-tax profit of N72.56 billion, a significant 76% increase from the N41 billion recorded in the same period of 2025. Profit after tax also saw a substantial rise of 76.08% year-on-year, reaching N63.132 billion from N35.8 billion in Q1 2025.

The bank's Q1 2026 profit represents approximately 32% of its full-year profit for 2025. If this performance is sustained, Wema Bank is projected to surpass its 2025 profit by over 29% in the current year.

Earnings per share experienced a slight decline of 1.60% to N7.90 from N8.03 in Q1 2025. This decrease is attributed to an increase in the weighted average number of ordinary shares outstanding, which grew to 31.953 billion as of March 31, 2026, compared to 27.281 billion as of March 31, 2025.

Financial Performance Breakdown (Q1 2026 vs Q1 2025)

• Interest income: N179.962 billion, a 63.48% increase year-on-year.
• Interest expense: N80.533 billion, a 50.69% increase year-on-year.
• Net interest income: N99.429 billion, up 75.54% year-on-year.
• Net impairment losses on financial instruments: N1.437 billion, a 20.96% increase year-on-year.
• Net interest income after impairment: N97.991 billion, an increase of 78.74% year-on-year.
• Net fee and commission income: N17.393 billion, a decrease of 30.57% year-on-year.
• Operating income: N122.853 billion, up 46.05% year-on-year.
• Operating expenses: N50.287 billion, an increase of 17.18% year-on-year.
• Total assets: N5.229 trillion, a 3.09% increase year-on-year.
• Loans and advances to customers: N1.863 trillion, a 7.18% increase.
• Customer deposits: N3.408 trillion, a 3.62% increase year-on-year.
• Equity: N683 billion, a 10.23% increase year-on-year.

The strong financial performance was primarily driven by a significant increase in interest income, which rose by 63.48% to N179.962 billion. This growth was largely fueled by a 50% increase in income from loans and advances to customers, amounting to N96.484 billion, which accounted for 54% of the total interest income. Income from investment securities contributed an additional 24% to the interest income.

Net interest income grew by 75.54% to N99.428 billion, benefiting from the high interest income and a slower growth rate in interest expenses compared to interest income. Impairment charges decreased by over 20% to N1.44 billion, further bolstering the net interest income after impairment charges, which saw a strong 79% growth to N97.991 billion.

Non-interest income, comprising fee and commission income and trading income, contributed approximately 20% to the bank's operating income of N122.85 billion. This contribution was lower than the 35% recorded in the first quarter of 2025.