Wema Bank Plc has unveiled its outstanding financial performance for the year ending December 31, 2025, showcasing remarkable growth across key metrics. The Nigerian financial institution reported a staggering 124% increase in profit after tax, which soared to N193.2 billion from N86.3 billion in the previous year.
Record-Breaking Earnings and Profitability
The bank's unaudited financial statements, released on the Nigerian Exchange (NGX), revealed gross earnings reaching N653.3 billion. Even more impressive was the profit before tax figure, which more than doubled to N222.1 billion from N102.5 billion in 2024. This exceptional performance was primarily driven by higher yields on loans and investment securities, coupled with strategic balance sheet positioning throughout the financial year.
Substantial Growth in Loan Portfolio and Investments
Wema Bank experienced significant expansion in its lending activities, with gross loans and advances surging by 45% to N1.75 trillion from N1.20 trillion in 2024. The institution's interest income jumped substantially to N577.1 billion, reflecting the impact of favorable interest rate conditions on its loan growth strategy.
Investment securities also demonstrated robust growth, increasing to N1.34 trillion from N900.2 billion in the previous year. This expansion significantly strengthened the bank's overall asset base and contributed to its enhanced financial stability.
Steady Non-Interest Income and Operating Performance
While maintaining steady non-interest income streams, Wema Bank reported net fees and commissions rising slightly to N57.9 billion. This growth was primarily fueled by increased activity in electronic banking services, account maintenance fees, and management charges. Although other income decreased to N8.9 billion from N17.3 billion, net trading income showed positive movement, climbing to N8.4 billion from N3.4 billion.
The bank's overall operating income nearly doubled, reaching N413.3 billion, demonstrating the effectiveness of its revenue generation strategies across multiple business segments.
Expanding Customer Base and Deposit Growth
One of the most notable achievements in Wema Bank's 2025 performance was the substantial growth in customer deposits, which increased by 30% to reach N3.28 trillion. This significant deposit expansion reflects growing customer confidence and the bank's successful customer acquisition and retention strategies in a competitive banking environment.
Managing Expenses Amid Business Expansion
As Wema Bank expanded its operations, operating expenses naturally increased, influenced by both business growth and prevailing inflationary pressures. Personnel costs amounted to N70.2 billion, while other operational expenses reached N108.6 billion. Despite these rising costs, the bank's strong revenue growth enabled profit before tax to more than double, showcasing effective cost management alongside revenue expansion.
Strengthened Financial Position and Asset Growth
The bank's total assets grew by an impressive 41% to N5.06 trillion, with cash balances standing at N934.8 billion and investment securities at N1.34 trillion. Shareholders' equity more than doubled to N621.7 billion, indicating substantial value creation for investors.
Net cash from operating activities experienced extraordinary growth, soaring to N982.9 billion. This substantial cash flow improvement significantly boosted the bank's liquidity position and supported its ongoing asset expansion initiatives.
Enhanced Performance Metrics and Returns
The strong financial performance translated into improved returns for shareholders, with Return on Equity (ROE) reaching 31%. Earnings per share also showed positive movement, rising to 708 kobo from 483 kobo in the previous year, reflecting the bank's enhanced profitability and value creation for investors.
Strategic Outlook and Future Plans
Wema Bank has outlined plans to continue growing its capital base through strategic funding initiatives, positioning itself for sustained growth in the coming years. The bank's management remains focused on maintaining momentum while navigating the evolving Nigerian financial landscape.
This exceptional performance places Wema Bank among the top performers in Nigeria's banking sector, demonstrating resilience and strategic acumen in a dynamic economic environment. The results underscore the bank's ability to leverage market opportunities while maintaining strong operational discipline and customer focus.
