Wema Bank Achieves Historic N1 Trillion Market Capitalisation Milestone
Wema Bank Plc has made history by joining Nigeria's exclusive N1 trillion market capitalisation club, marking a significant achievement for one of the country's oldest tier-2 financial institutions. This development places Wema Bank alongside other banking giants that have previously crossed this threshold, signaling a remarkable shift in investor sentiment toward mid-tier banking stocks on the Nigerian Exchange.
Market Performance and Investor Confidence
Data from the Nigerian Exchange reveals that as of Tuesday, February 3, Wema Bank's shares gained an impressive 4.2 percent, closing at N24.95 per share. This represents a substantial increase from the N23.95 recorded in the previous trading session. The bank began the year with a share price of N20.40 and has since demonstrated remarkable growth, gaining 22.3 percent year-to-date and ranking 47th on the NGX in terms of performance.
According to market analytics platform African Stock Exchange data, Wema Bank has now become the 24th most valuable listed company on the Nigerian Exchange, with a market capitalisation of approximately N1 trillion. The bank currently accounts for about 0.94 percent of the total equity market value of the Nigerian Exchange, reflecting its growing importance in the financial landscape.
Financial Performance Driving the Rally
The remarkable surge in Wema Bank's stock value follows a substantial improvement in its financial performance. The bank's profit after tax more than doubled in 2025, experiencing an extraordinary 124 percent increase to N193.2 billion from the N86.3 billion recorded in the previous year. This impressive growth demonstrates the bank's strengthened operational efficiency and strategic positioning in the market.
According to unaudited financial results for the year ended December 31, 2025, Wema Bank's gross earnings climbed significantly to N653.3 billion, up from N433.4 billion in 2024. This substantial growth was primarily driven by higher interest income, strategic loan expansion, and stronger operating cash flows, all supported by Nigeria's elevated interest rate environment.
Key Financial Metrics and Expansion
Interest income showed remarkable growth, jumping to N577.1 billion from N354.6 billion a year earlier. This increase reflects higher yields on loans and investment securities, indicating improved asset quality and strategic portfolio management. The bank's loans and advances to customers grew by an impressive 45 percent to N1.75 trillion, compared with N1.20 trillion in 2024, highlighting aggressive balance-sheet expansion and increased lending activities.
Income from investment securities also experienced significant growth, underscoring the bank's active asset allocation strategy and improved earnings quality. This comprehensive financial improvement has positioned Wema Bank as a strong contender in Nigeria's competitive banking sector.
Nigeria's N1 Trillion Banking Club
With this achievement, Wema Bank joins an elite group of financial institutions that have reached the N1 trillion valuation milestone. The current members of this exclusive club include:
- Guaranty Trust Holding Company (GTCO)
- Zenith Bank Plc
- United Bank for Africa (UBA) Plc
- Access Holdings Plc
- First HoldCo Plc (First Bank)
- Stanbic IBTC Holdings Plc
- Ecobank Transnational Incorporated (ETI)
- Fidelity Bank Plc
Broader Banking Sector Context
The Central Bank of Nigeria has confirmed that sixteen banks have fully met the recapitalisation requirements, while an additional twenty-seven financial institutions are still in the process of raising capital. CBN Governor Olayemi Cardoso emphasized that the regulator is closely monitoring progress to ensure the exercise remains on course and contributes to enhanced financial system stability.
This development at Wema Bank underscores the growing investor interest in Nigeria's tier-2 lenders, driven by improved earnings performance and favourable market sentiment. The bank's achievement represents not only a corporate milestone but also reflects broader positive trends in Nigeria's financial sector as institutions strengthen their capital bases and improve operational performance.
