Wema Bank stock: Profit jumps 72.6% as loan growth raises risks

Published on 11/12/2026 at 00:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Wema Bank stock is in focus after strong nine-month earnings growth. Faster lending and rising credit costs leave investors watching asset quality.

Profit Growth Meets Rising Credit Risk

Wema Bank reported strong nine-month earnings growth, supported by lending and trading income.
Higher impairment charges and weaker asset yields are key issues for investors.
The bank's next challenge is sustaining returns as monetary policy and funding costs evolve.

WEMABANK, NGWEMABANK07, Illustration mit AI erstellt.

Wema Bank reported a 72.6 percent rise in profit after tax to NGN 219.84 billion for the nine months ended September 30, 2026, according to Business A.M. The November 2 report said stronger lending, trading income and operating efficiency offset pressure from declining asset yields.

Lending Drives The Earnings Advance

Profit before tax increased 76.6 percent to NGN 258.64 billion, while gross earnings rose 45.7 percent to NGN 673.24 billion. Interest income gained 37.2 percent to NGN 543.56 billion, helping net interest income rise 38.3 percent to NGN 325.88 billion.

Customer loans expanded 44.5 percent to NGN 2.51 trillion, compared with 17.4 percent growth in customer deposits to NGN 3.86 trillion. Non-interest income nearly doubled to NGN 129.68 billion, with net trading income more than quadrupling to NGN 46.08 billion.

Credit Costs Shape The Outlook

The strong headline result came with pressure points. Third-quarter impairment charges reached NGN 13.50 billion, representing about 73 percent of the nine-month total, as the rapidly expanded loan book began to carry greater credit-cost risk.

Earnings per share fell 1.1 percent to NGN 7.31 after the weighted average share count increased to 40.12 billion following the recapitalisation. The rights issue added 14.29 billion shares at NGN 10.45 each, meaning total profit growth did not translate into higher profit per share.

Investors will also be watching interest margins. Meristem Securities said asset yields fell 405 basis points to 8.88 percent, while the cost of funds declined by only 38 basis points to 5.44 percent. A possible rate cut at Nigeria's Monetary Policy Committee meeting on November 23 and 24 could add to pressure on lending returns if funding costs adjust more slowly.