Wema Bank reported that profit after tax increased by 72.6% to N219.84 billion for the nine months that ended on 30 September 2026, surpassing the full-year 2025 result by 13.1%.
The institution’s unaudited pretax earnings rose by 76.6% to N258.64 billion, up from N146.36 billion recorded a year earlier, indicating strong momentum even as lending margins faced pressure.
In the third quarter, profit after tax reached N88.47 billion, roughly 30% higher than the figure posted in the second quarter, which points to continued earnings strength as the reporting period drew to a close.
Revenue Drivers
Gross earnings climbed by 45.7% to N673.24 billion, while interest income grew by 37.2% to N543.56 billion as the loan portfolio expanded across multiple segments.
Net interest income rose by 38.3% to N325.88 billion, reflecting balance-sheet growth that still generated solid returns despite a slowdown in asset yields.
Non-interest income nearly doubled to N129.68 billion, and net trading income more than quadrupled to N46.08 billion, showing the contribution of fee-based and market-related activities.
Foreign-exchange transaction income turned to a gain of N6.17 billion after a loss of N8.68 billion in the prior period, adding further support to the trading boost.
Cost Management
Operating income increased by 52.7% to N437.02 billion, outpacing operating expenses, which grew by 27.7% to N178.38 billion. This differential helped improve overall profitability.
The cost-to-income ratio improved to 40.8% from 48.8%, signalling better operating leverage and efficiency in managing overhead.
Earnings per share slipped by 1.1% to N7.31 after the weighted-average share count rose to 40.12 billion following a rights issue of 14.29 billion shares at N10.45 each, which diluted the per-share figure.
According to MoneyCentral calculations, return on average equity was roughly 41.6%, and shareholders’ equity grew by 27.3% to N790.13 billion, expanding the capital base and providing a stronger buffer for future growth.
Credit and Funding Risks
Loans to customers expanded by 44.5% to N2.51 trillion, while deposits rose by 17.4% to N3.86 trillion.
Third-quarter impairment charges of N13.50 billion accounted for about 73% of the nine-month total, indicating that credit costs are concentrating later in the reporting period.
Asset yields fell by 405 basis points to 8.88%, whereas the cost of funds slipped only 38 basis points to 5.44%, tightening the net interest margin.
Wema Bank’s strong earnings growth and expanding capital base position the bank for continued growth, despite potential challenges from credit risks and monetary policy changes, concluding the bank’s performance for the nine months ended September 30, 2026.
