Wema Bank Plc has announced a remarkable surge in profitability for the first quarter of 2025, reporting a 270% increase in profit after tax, reaching N35.8 billion compared to N9.67 billion in the same period of 2024. This impressive financial performance is attributed to a combination of factors, including significant growth in interest income, effective cost management strategies, and a substantial increase in non-interest income streams. The bank’s strategic focus on optimizing its core operations and diversifying its revenue base has clearly yielded positive results, showcasing its resilience and adaptability in a competitive market environment.
The bank’s financial statements reveal a robust growth in interest income, which climbed by 59% to N110.33 billion, driven by improved yields on loans and advances and increased earnings from investment securities. Simultaneously, Wema Bank demonstrated prudent cost management practices, as evidenced by a slower growth in interest expenses at 24%, reaching N53.74 billion. This resulted in a substantial 117% increase in net interest income to N56.59 billion, highlighting the bank’s ability to effectively manage its net interest margin. Even after accounting for a net impairment loss on financial assets, the bank’s net interest income after credit losses still reflected a remarkable 119% year-on-year growth, underscoring the quality of its loan portfolio and risk management practices.
Furthermore, Wema Bank’s non-interest income performance contributed significantly to the overall profit surge. Net fee and commission income witnessed a remarkable 131% increase, reaching N25.05 billion, fueled by increased transactional activity and enhanced service offerings. Net trading income also more than doubled, indicating successful trading strategies and market positioning. These positive trends in non-interest income demonstrate the bank’s success in diversifying its revenue streams beyond traditional banking activities, creating a more resilient and balanced income structure.
The bank’s operating income for the first quarter of 2025 reached N84.07 billion, more than double the N36.85 billion reported in the corresponding period of 2024. While operating expenses, including personnel and other operating costs, also increased significantly, the growth in revenue substantially outpaced the rise in expenses. This underscores the bank’s commitment to operational efficiency while simultaneously expanding its operations and investing in its workforce. The resulting profit before tax soared by 269% to N41.16 billion, reflecting the overall effectiveness of the bank’s strategic initiatives.
After accounting for a tax provision of N5.36 billion, Wema Bank achieved a profit after tax of N35.80 billion, exceeding the N9.67 billion recorded in Q1 2024 by a significant margin. This impressive profit growth translates to a substantial increase in total comprehensive income, further solidifying the bank’s strong financial position and its ability to generate value for its shareholders. The substantial increase in profitability is a testament to the bank’s robust business model, effective management strategies, and its ability to capitalize on market opportunities.
While the balance sheet shows a marginal decline in total assets, primarily due to a reduction in investment securities held at amortised cost, customer deposits witnessed an increase, reaching N2.52 trillion. This indicates continued customer confidence in the bank’s operations and its ability to attract and retain deposits. The decline in retained earnings reflects dividend distribution and other capital adjustments. The overall financial performance for the first quarter of 2025 positions Wema Bank favorably for sustained growth and reinforces its commitment to delivering strong returns to its stakeholders, especially in the context of the ongoing recapitalization drive within the Nigerian banking sector.
