Wema Bank Plc delivered a standout 2025 financial performance, underpinned by strong revenue growth, improved operating efficiency, and sustained digital banking expansion.
Gross earnings rose sharply to N660.6 billion from N432.3 billion in the prior year, driven primarily by interest income growth to N576 billion, up from N354.6 billion. This translated into a notable expansion in net interest margin to 11.6%, compared with 8.8% in 2024, reflecting stronger asset yield optimisation.
Operational efficiency improved significantly, with the cost-to-income ratio declining to 29.0% from 33.4%. This structural shift highlights the bank’s successful transition toward a lower-cost, technology-driven operating model.
Profitability metrics were particularly robust. Profit after tax more than doubled year-on-year to N194.5 billion from N86.3 billion, driven not by nonrecurring gains but by core business growth, especially the scale of its flagship platform processed N31.9 trillion in transactions during the year, reinforcing its role as a primary earnings engine.
Over a six-year horizon, Wema’s cost efficiency has materially improved, with the cost of generating N100 in income declining from N84.50 to N29. This reflects a decisive pivot from branch-led banking to digital infrastructure, enabling higher transaction volumes at lower marginal cost.
Balance sheet strength also improved markedly. Total assets expanded to N5.07 trillion from N3.59 trillion, while shareholders’ equity rose to N621.7 billion from N256.4 billion, supported by a N200 billion capital raise during the year. Consequently, the capital adequacy ratio increased to 28.1%, well above the regulatory minimum of 15%, providing a strong buffer for future growth.
Asset quality showed a slight moderation, with non-performing loans rising to 4.9% from 3.2% in 2024, though still within man- ageable levels relative to industry thresholds.
Earnings per share advanced to N7.10 from N4.80, reinforcing shareholder value creation. The board proposed a dividend of N1.25 per share, implying a yield of approximately 4.8% at current market prices, while retaining over 80% of earnings to support expansion.
At a price-to-earnings ratio of 3.7x, Wema Bank remains one of the most attractively valued names in the Nigerian banking sector, combining earnings momentum, capital strength, and a scalable digital franchise.
Meanwhile, 2025 marks a pivotal year for Wema Bank characterised by accelerated profitability, disciplined cost management, and a balance sheet positioned for sustained growth.
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