Wema Bank Plc, a Lagos-based lender, reported stronger earnings in the first quarter of 2026, supported by higher interest income as loan growth continued across its commercial banking operations. Profit after tax rose to N63.13 billion ($46.4 million), compared with N35.85 billion ($26.3 million) in the same period a year earlier, according to its latest financial statements.

Total revenue also increased over the period, with gross earnings climbing to N204.82 billion ($150.5 million) from N139.38 billion ($102.4 million) in the first quarter of 2025. This was largely driven by net interest income, which rose to N99.43 billion ($73.1 million) from N56.64 billion ($41.6 million), reflecting stronger lending income even as funding costs increased.

Lending spree powers bank’s income surge

Interest expenses rose to N80.53 billion ($59.2 million) from N48.97 billion ($36 million), but the bank still recorded a higher interest income base. Fee and commission income declined to N17.39 billion ($12.77 million) from N25.05 billion ($18.41 million), pointing to softer activity in some transaction-based services during the period.

Loan growth remained a key driver of performance. Corporate and retail lending increased to N1.86 trillion ($1.36 billion) in the first three months of the year, indicating continued deployment of credit into business and consumer segments across Nigeria. Operating expenses also rose to N50.29 billion ($37 million) from N42.91 billion ($31.5 million), mainly due to regulatory charges and higher costs linked to inflation pressures in the local economy.

Strong Q1 earnings support balance sheet growth

Wema Bank operates an extensive retail banking network across Nigeria, driving financial inclusion through its branches and its digital banking platform, ALAT. The lender offers personal banking, SME finance, corporate loans, and treasury services, while providing tailored structured trade finance and cash management solutions to commercial clients nationwide.

Thanks to its impressive financial performance, total assets rose modestly to N5.23 trillion ($3.84 billion) as of March 31, 2026, from N5.07 trillion ($3.72 billion) at the end of December 2025. Shareholders’ equity also increased to N683.95 billion ($503 million) from N620.47 billion ($456 million), while retained earnings climbed to N278.2 billion ($204.5 million) over the period, supported by stronger earnings and steady balance sheet growth.