By Seun Ibiyemi
Wema Bank Plc has recorded a strong financial performance for the first half of 2026, posting a profit before tax (PBT) of ₦72.57 billion, driven largely by a significant increase in interest income and sustained growth in its core banking operations.
According to the bank’s half-year financial results submitted to the Nigerian Exchange (NGX), PBT rose by 76.1 per cent from ₦41.21 billion recorded in the corresponding period of 2025.
After accounting for a tax expense of ₦9.43 billion, profit after tax (PAT) stood at ₦63.13 billion, representing a similar 76.1 per cent increase from ₦35.85 billion reported in the first half of last year.
The impressive earnings performance was underpinned by a sharp rise in interest income, which climbed to ₦179.96 billion from ₦110.08 billion in the same period of 2025.
The growth was supported by higher yields on earning assets, increased lending activities, and strategic pricing in a high-interest-rate environment.
A breakdown of the earnings showed that loans and advances to customers contributed ₦96.48 billion to interest income, while income from money market placements and cash reserves amounted to ₦40.28 billion.
Although funding costs increased significantly during the period, with interest expenses rising to ₦80.53 billion from ₦53.44 billion a year earlier, the bank maintained strong earnings momentum.
Net interest income expanded by 75.6 per cent to ₦99.43 billion, compared to ₦56.64 billion in the corresponding period of 2025.
On the non-interest income segment, Wema Bank recorded mixed performance. Net fees and commission income declined to ₦17.39 billion from ₦25.05 billion, largely due to a reduction in electronic banking fees, which fell to ₦6.10 billion during the review period.
Despite the decline in fee-based income, the bank sustained positive operating leverage as revenue growth continued to outpace the increase in operating expenses.
The lender also maintained a strong balance sheet position, building on the momentum achieved in its 2025 financial year when total assets surpassed the ₦5 trillion mark to close at ₦5.072 trillion.
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Wema Bank further strengthened its capital base through the successful completion of a ₦200 billion capital raise, comprising a ₦150 billion Rights Issue and a ₦50 billion Private Placement.
The fresh capital is expected to enhance the bank’s capital adequacy ratio and position it comfortably ahead of the Central Bank of Nigeria’s 2026 banking recapitalisation deadline.
Analysts say the bank’s robust earnings growth, strong asset expansion and successful capital raising exercise reinforce its position as one of Nigeria’s fastest-growing financial institutions and provide a solid foundation for sustained growth in the coming years.
