Wema Bank Plc has reported a 270 per cent surge in its profit after tax for the first quarter ended March 31, 2025, reaching N35.8bn, up from N9.67bn recorded in the same period of 2024.
The bank’s unaudited consolidated financial statements, filed with the Nigerian Exchange Limited, show an improvement in earnings performance, driven by interest income, cost efficiency, and non-interest income growth.
However, on the balance sheet side, total assets slightly declined to N3.59tn from N3.61tn as at December 2024, largely reflecting a reduction in investment securities held at amortised cost, which fell from N991.94bn to N840.02bn.
Interest income rose by 59 per cent to N110.33bn in the first quarter of 2025, compared to N69.42bn in the corresponding period in 2024. This increase was due to improved yields on loans and advances as well as earnings from investment securities.
On the cost side, interest expenses grew by only 24 per cent to N53.74bn from N43.32bn, indicating better funding cost management. Consequently, net interest income surged by 117 per cent to N56.59bn in the period under review, from N26.10bn recorded in the first quarter of 2024.
After accounting for a net impairment loss on financial assets of N1.82bn, Wema Bank’s net interest income after credit losses stood at N54.77bn, representing a 119 per cent increase year-on-year.
The bank also saw gains in non-interest income, with net fee and commission income rising by 131 per cent to N25.05bn in Q1 2025, up from N10.85bn in the same quarter last year. Net trading income also more than doubled, growing from N608.06m to N1.50bn, while net gains on financial instruments at fair value through profit or loss hit N2.19bn from a marginal loss of N472,000 in the previous year.
Operating income for the quarter reached N84.07bn, more than double the N36.85bn posted in Q1 2024. Despite a notable rise in operating expenses—personnel expenses rose to N12.98bn from N9.94bn, while other operating costs more than doubled to N27.38bn—profit before tax increased by 269 per cent to N41.16bn.
After a tax provision of N5.36bn, the bank closed the quarter with a profit after tax of N35.80bn, compared to N9.67bn in the same period of the previous year.
Total comprehensive income also grew significantly, amounting to N35.80bn in Q1 2025 compared to N9.67bn in Q1 2024.
Customer deposits increased to N2.52tn from N2.41tn as at year-end 2024, reflecting continued confidence in the bank’s operations. However, retained earnings declined from N139.05bn in December 2024 to N103.25bn in March 2025, reflecting dividend distribution and other capital adjustments.
Wema Bank’s equity stood at N256.42bn at the end of the first quarter, down from N292.22bn in December 2024.
The growth in profitability is likely to boost investor confidence and position the bank favourably in the ongoing recapitalisation drive within the Nigerian banking sector.
