Wema Bank Plc has released its unaudited financial results for Q1 ended March 31, 2026, reporting a pre-tax profit of N72.56 billion, reflecting a 76% increase compared to the N41 billion in Q1 2025.
Profit after tax also surged by 76.08% YoY to N63.132 billion, from N35.8 billion in Q1 2025.
The Q1 2026 profit represents about 32% of 2025 full-year profit, and if sustained in the succeeding quarters of the year, Wema will surpass its 2025 profit by over 29%
Earnings per share declined by 1.60% to N7.90 from N8.03 in Q12025, due to the increase in the weighted average number of ordinary shares.
Shares outstanding stood at 31.953 billion as of March 31, 2026, against 27.281 billion as of March 31, 2025.
Key highlights (Q1 2026 vs Q1 2025)
- Interest income: N179.962 billion, +63.48% YoY
- Interest expense: N80.533 billion, +50.69% YoY
- Net interest income: N99.429 billion, +75.54% YoY
- Net impairment losses on financial instruments: N1.437 billion, +20.96% YoY
- Net interest income after impairment: N97.991 billion; +78.74% YoY
- Net fee and commission income: N17.393; -30.57% YoY
- Operating income: N122.853 billion, +46.05% YoY
- Operating expenses: N50.287 billion; +17.18% YoY
- Total assets: N5.229 trillion, +3.09% YoY
- Loans and advances to customers: N1.863 trillion, +7.18%
- Customer deposits: N3.408 trillion, +3.62% YoY
- Equity: N683 billion, _10.23% YoY
What is driving the numbers
The strong performance was driven primarily by a significant increase in interest income, which rose by 63.48% to N179.962 billion.
- The growth was largely fueled by strong performance in income from loans and advances to customers, which increased by 50% to N96.484 billion. This accounted for 54% of total interest income.
- Investment securities followed, contributing 24% to interest income.
Net interest income grew by 75.54% to N99.428 billion. This sharp increase was driven by high interest income and slower growth in interest expenses compared to interest income.
- Impairment charges dropped by over 20% to just N1.44 billion and contributed to the strong 79% growth in net interest income after impairment charges to N97.991 billion.
Non-interest income, which includes fee and commission income and trading income, contributed about 20% to the bank’s operating income of N122.85 billion, but was lower than the 35% contribution in Q1 2025.
This can be attributed to the decline in net fees and commission income.
- Although fees on electronic products generated the highest income under fees and commission income at N6 billion, it represents a decline compared to the N12 billion earned in Q1 2025.
- This contributed to the decline in net fees and commission income by over 30% YoY.
Balance sheet
On balance sheet, total assets grew by 3.09% to N5.229 trillion in the first quarter of 2026 with customer deposits funding 65% of the balance sheet.
Shareholders’ funds increased by over 10% to N684 billion, driven by a 29% rise in retained earnings, now at N278 billion. As a result, the proportion of equity to total assets increased to 13%, up from 12% three months ago.
Loans and advances to customers, which grew by 7.2%, now make up 36% of the balance sheet size, reflecting the bank’s expansion in lending activities.
What to know
Wema Bank’s Q1 2026 performance highlights strong growth in both revenue and profitability, with interest income being the primary driver of the bank’s success.
- Although earnings per share declined to N7.90 from N8.03 in Q1 2025 due to an increase in shares outstanding, it outperformed the full-year 2025 earnings of N7.13.
- If Q1 2026 earnings trend is sustained, the bank is likely to beat its 2025 full-year performance
- Annualizing the Q1 2026 earnings suggests that the 2026 full-year EPS is likely to reach N31.Market reaction
Share price performance
In terms of share price performance, Wema Bank has been a top performer, particularly within the banking sector.
It was ranked as the best-performing bank in 2025, with a Year-to-Date (YtD) gain of 124%, closing at N20.40.
The stock has continued its upward trend, gaining 76.5% so far in the current year.
