Wema Bank’s sustained profit generation to drive Basic EPS 

Wema Bank’s Plc for unaudited half year (H1) ended June 30, 2026 declared  profit before tax of N154.5 billion ,about 53.65 per cent increase from N100.6billion in half year ended Jun 30, 2025, while profit after  tax closed at N131.3 billion in H1 2026, up by157  per cent from N87.5 billion in H1 2025.

The  H1 2026 performance, however, reinforced the view that the one of Nigeria’s oldest financial institutions has moved into a new phase of earnings expansion. 

The H1 2026 profit after  tax of N131.37 billion already represents about 67.5 per cent of 2025 earnings, indicating that the bank is on track to surpass its previous profit record. 

The latest performance builds on a five year earnings transformation that has seen profit after tax rise from N8.93 billion in 2021 to N194.48 billion in 2025, representing a compound annual growth rate of 116 per cent.

The H1 2026 profit already represents about 67.5 per cent of the bank’s full year 2025 earnings, highlighting the strength of the current growth momentum.  

In its results filed on the Nigerian Exchange Limited (NGX), Wema Bank’s Basic Earning Per Share (EPS) dropped by 19.81 per cent to N6.55 per share in H1 2026 from N81.67 per share in H1 2026,   a function of the enlarged 40.12 billion share count following 2025’s N150 billion rights issue and N50billion special placement rather than weaker profit, is being priced ahead of the underlying profit before tax growth.

Wema Bank’s N150 billion and N50 billion Rights Issue and special placement were major parts of its Central Bank of Nigeria (CBN)  recapitalisation strategy and are particularly important when assessing the bank’s strong H1 2026 performance.

The purpose was not simply to meet the CBN’s N200 billion minimum capital requirement for national banks. Wema also wanted to create sufficient capital to support aggressive balance-sheet expansion and its ambition to become a Systemically Important Bank (SIB).

For Wema Bank, its  weighted average number of ordinary shares-of 50k each closed June 30, 2026 at 40,118,877 as against 27,280,957 in 2025. 

With the growth momentum so far in 2026, it is evidence  that  Wema Bank  Basic EPS would emerge positive as the bank continues to expand its lending portfolio, improve fee income contribution and sustain cost discipline. Looking ahead, Wema Bank appears positioned for another strong year if current earnings momentum continues. 

Meanwhile, Wema Bank’s earnings expansion has been driven largely by strong balance sheet development, higher interest income, improved credit performance and better operating Earnings growth was underpinned by robust expansion in the Bank’s

However, Wema Bank earnings growth  in H1 2026 was underpinned by robust expansion in the Bank’s core lending activities, with interest income closing H1 2026 at N342.64 billion, about 43 per cent increase over N240.12 billion reported in H1 2025. 

Consequently, net interest income improved to N195.45billion in H1 2026, representing an increase of 51.26 per cent from N129.218  billion reported in H1 2025   , supported by growth in earning assets and improved asset yields. 

Non-interest income also recorded healthy growth, closing H1 2026 at N72.45billion, about 14.85 per cent increase over N63.07 billion reported in H1 2025 to reinforce the diversification of the Bank’s revenue base.

The Bank maintained strong balance sheet growth during the period. Total assets expanded by 13.52per cent to N5.76 trillion, while net loans grew by 21.73per cent to N2.12 trillion, reflecting continued support for customers and businesses across key sectors of the economy.

Customer deposits increased by 4.96per cent to N3.45 trillion, providing a stable funding base for the Bank’s growth initiatives. Profitability remained strong, as evidenced by an improvement in Return on Average Assets (ROAA) to 4.85per cent from 4.64per cent in 2025FY. 

The Bank also maintained a healthy Net Interest Margin (NIM) of 9.51per cent, demonstrating resilience in its core banking operations. Asset quality remained within regulatory thresholds, with the NonPerforming Loan (NPL) ratio at 3.87per cent, reflecting the Bank’s continued focus on prudent risk management and portfolio monitoring.