By Seun Ibiyemi
Wema Bank Plc recorded a 50.1 per cent increase in profit after tax (PAT) to N131.4 billion in the first half of 2026, driven by strong growth in interest income and an expanding loan portfolio, despite the expected impact of its enlarged share capital following recapitalisation.
The bank’s unaudited financial results for the six months ended June 30, 2026, showed that profit after tax rose from N87.50 billion recorded in the corresponding period of 2025, while profit before tax climbed 53.7 per cent to N154.56 billion, compared with N100.60 billion a year earlier.
Gross earnings also grew by 36.9 per cent to N415.09 billion, reflecting improved income generation across its core banking operations.
The impressive earnings performance was largely supported by a 42.7 per cent increase in interest income, which rose to N342.64 billion from N240.12 billion in the same period last year, underscoring stronger returns from lending activities and investment assets.
The lender also posted significant balance sheet growth during the period, with total assets increasing by 13.5 per cent to N5.76 trillion as of June 30, 2026, from N5.07 trillion at the end of December 2025.
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Loans and advances to customers expanded by 21.7 per cent to N2.12 trillion, highlighting increased credit creation, while customer deposits rose by nearly five per cent to N3.45 trillion from N3.29 trillion, providing additional liquidity to support lending activities.
The half-year performance reflects Wema Bank’s sustained earnings momentum following its successful recapitalisation, with higher interest income and a growing loan book reinforcing profitability amid a challenging operating environment.
Commenting on the results, Lagos-based financial analyst Segun Adegun noted that while the bank’s stronger capital base would enhance its long-term growth prospects, shareholders could experience temporary pressure on earnings per share.
“Despite this, the enlarged share capital of the bank is expected to weigh on earnings per share in the near term, even as the stronger capital base positions the bank for future expansion,” Adegun said.
The results suggest that Wema Bank remains on a growth trajectory, leveraging its strengthened capital position to expand lending, deepen earnings and reinforce its balance sheet ahead of future business expansion.
