Wema Bank Plc has reported a strong profit performance in the first quarter of 2025, with profit after tax jumping by 270 per cent to N35.8 billion. This figure is a significant rise from the N9.67 billion recorded in the same period in 2024. The bank’s unaudited financial results for the quarter ended March 31, 2025, were filed with the Nigerian Exchange Limited, and they show major improvements in revenue and cost management despite slight drops in total assets and equity.
The profit growth was mainly driven by an increase in interest income, better control of funding costs, and gains in non-interest revenue. Interest income rose by 59 per cent to N110.33 billion in Q1 2025, compared to N69.42 billion in Q1 2024. This was made possible by higher earnings from loans and advances as well as investment securities. On the other hand, interest expenses increased modestly by 24 per cent to N53.74 billion, showing that the bank managed its cost of funds more effectively. As a result, net interest income more than doubled to N56.59 billion, a 117 per cent rise from N26.10 billion in the same quarter last year.
After accounting for credit losses worth N1.82 billion, net interest income after impairment came to N54.77 billion, representing a year-on-year growth of 119 per cent.
Non-interest income also improved sharply. Net fee and commission income rose by 131 per cent to N25.05 billion, up from N10.85 billion in Q1 2024. Net trading income grew from N608.06 million to N1.50 billion, and the bank posted net gains of N2.19 billion on financial instruments at fair value through profit or loss, compared to a marginal loss of N472,000 in the same period last year.
Operating income for the quarter more than doubled to N84.07 billion from N36.85 billion in Q1 2024. Although operating expenses increased significantly—with personnel costs rising to N12.98 billion and other operating expenses more than doubling to N27.38 billion—the bank still ended the quarter with a 269 per cent jump in profit before tax, which reached N41.16 billion.
After a tax charge of N5.36 billion, Wema Bank closed the quarter with a net profit of N35.80 billion. This also represented the bank’s total comprehensive income for the period, compared to N9.67 billion in Q1 2024.
On the balance sheet, the bank’s total assets slightly dropped to N3.59 trillion from N3.61 trillion at the end of December 2024. The decline was largely due to a reduction in investment securities held at amortised cost, which fell from N991.94 billion to N840.02 billion.
Customer deposits increased to N2.52 trillion in Q1 2025 from N2.41 trillion in December 2024, showing continued confidence from depositors. However, retained earnings fell to N103.25 billion from N139.05 billion, reflecting dividend payouts and capital adjustments.
Equity also declined slightly to N256.42 billion from N292.22 billion at year-end 2024. Despite this, the bank’s sharp growth in earnings is expected to strengthen its position ahead of the Central Bank of Nigeria’s ongoing recapitalisation drive, which has placed pressure on banks to increase their capital base.
The Q1 2025 performance highlights Wema Bank’s operational resilience and ability to balance growth and cost control in a challenging macroeconomic environment.
