Wema Bank H1 2026 profit jumps 54% to N154.6bn despite high rates
Wema Bank reported pretax profit of N154.56 billion for H1 2026, up 53.65% from N100.59 billion a year earlier, with after‑tax profit rising 50.12% to N131.37 billion. Gross earnings rose 36.9% to N415.09 billion and operating income grew 39.27% to N267.07 billion, while operating expenses rose only 23.4% to N112.51 billion, improving the cost‑to‑income ratio to 42.13% from 47.55%. Interest income jumped 42.69% to N342.64 billion, interest expense rose more slowly at 32.72% to N147.19 billion, pushing net interest income up 51.26% to N195.45 billion. Net loans and advances increased 21.73% to N2.12 trillion, customer deposits grew a modest 4.96% to N3.45 trillion, lifting the loan‑to‑deposit ratio to 61.27% from 52.83%. Fee and commission income fell 20.48% to N36.09 billion, dragged by a 65.89% drop in electronic‑product fees to N7.14 billion, highlighting pressure on digital monetisation. Capital remained strong, with total equity N700.45 billion and excess capital above the CBN’s N200 billion threshold. The results show the bank is leveraging high rates to boost earnings while expanding its loan book, but it faces a funding gap and weakening fee income that investors and customers should watch.