Wema Bank’s H1 2025 Financial Results: A Remarkable Turnaround
Wema Bank’s financial results for the first half of 2025 demonstrate a remarkable turnaround, with the institution posting a profit before tax (PBT) of N100.5 billion, representing a significant 229.12% increase from the N30.5 billion recorded in the same period of 2024.
The bank’s strong performance can be attributed to the growth in interest income, which rose to N240.6 billion, a 64.76% year-over-year increase. This growth was driven by the bank’s loans and advances to banks and customers, which contributed N141 billion to the total interest income. Additionally, interest from investments in securities contributed N97.6 billion, while interest on cash and cash equivalents contributed N2 billion.
Despite the increase in interest expenses, which rose by 34.45% to N111.4 billion, the bank’s net interest income still managed to grow by 104.50% to N129.2 billion. After accounting for an impairment charge of N532.5 million, the net interest income stood at N128.6 billion, showing a year-on-year growth of 119.85%.
The bank’s total operating income grew to N191.7 billion, reflecting a 109.27% increase from N91.6 billion reported in the same period of the previous year. This growth was driven by the significant rise in net fee and commission income, which reached N45.3 billion, a 91.54% increase from N23.6 billion recorded in the first half of 2024.
Wema Bank’s total assets rose to N3.9 trillion, representing a 10.53% increase compared to the figure reported as at December 2024. Retained earnings also grew to N169.3 billion, up from N103.2 billion at the end of last year.
The bank’s efficient operations and strong asset quality are evident in its improved key performance metrics. The bank’s Return on Average Equity (ROAE) grew by 60.40%, indicating a significant increase in profitability relative to shareholder equity. The Return on Average Assets (ROAA) also showed a notable growth of 4.64%, demonstrating the bank’s ability to generate earnings from its assets.
The bank’s Capital Adequacy Ratio (CAR) stood at 13.68%, indicating a strong capital position and ability to absorb potential losses. The Cost-to-Income Ratio improved by 47.55%, suggesting that the bank has been effective in managing its operating expenses relative to its income. Furthermore, the bank’s Non-Performing Loan (NPL) Ratio was 3.17%, which is within regulatory tolerance, indicating a relatively healthy loan portfolio.
With its strong financial performance, Wema Bank is well-positioned to exceed its 2025 financial targets and further strengthen its legacy of performance and innovation. By leveraging technology, operational efficiency, and customer-centric innovation, the bank remains committed to delivering value to its stakeholders and sustaining its growth momentum. The bank’s year-to-date performance of 126% in its share price reflects its strong financial performance and investor confidence.
