Wema Bank records N14.53bn in FX revaluation gains

Wema Bank has seen its income from foreign exchange revaluation increase to N14.53bn at the end of 2024 from N13.60bn in 2023, indicating a 6.78 per cent increase.

This was revealed in its unaudited financial statement for the fourth quarter of 2024, which was filed with the Nigerian Exchange Limited on Thursday.

Forex revaluation gains occur when there is an increase in the value of a bank’s assets and liabilities denominated in foreign currency due to a change in the exchange rate between the foreign currency and the local currency.

Recall that the National Assembly has approved the imposition of a 70 per cent windfall tax on the FX gains of banks that had benefitted from the harmonisation of the segments of the currency market in June 2023.

According to the result, for the fourth quarter only, the bank had recorded N325.16m in FX revaluation income.

Under fees and commission, it also saw income from FX transactions rise significantly from N4.15bn in 2023 to N15.04tn at the end of 2024, a 262.66 per cent surge in one fiscal year.

In terms of revenue for 2024, Wema Bank nearly doubled its revenue, which stood at N430.26bn from N226.91bn in the previous year. The feat was achieved on the back of a boost in interest income to N351.83bn from N185.64bn and net fee and commission income, which rose to N55.62bn from N24.96bn.

At the end of the 2024 financial year, Wema Bank recorded a 146.84 per cent increase in profit to N88.83bn from N35.99bn in 2023.

Meanwhile, the bank has announced plans to raise an additional N200bn in its final tranche of the recapitalisation exercise. The bank intends to raise the additional funds via a combination of rights issues and a private placement exercise set to go live on April 1, 2025.

Ahead of the announcement of the new capital base by the Central Bank of Nigeria, Wema Bank launched an N40bn rights issue in December 2023 and received the approval of the CBN and the Securities and Exchange Commission in 2024.

Commenting on the upcoming rights issue, Wema Bank’s Managing Director/Chief Executive Officer, Moruf Oseni, assured shareholders and other stakeholders of a successful conclusion of the capital raise programme.

He said, “We stand strong today not just as Nigeria’s oldest indigenous bank but also as Nigeria’s leading innovative bank. Wema Bank turns 80 this year, and I can safely tell you that we have never been more driven to excel. I am blessed to lead with the support of a team of determined and driven professionals who will leave no stone unturned in achieving our strategic aspirations. Indeed, we are building Wema Bank into a formidable force in the African financial services landscape.

“We remain dedicated to maintaining transparency throughout this process and will provide regular updates to all stakeholders and shareholders as we go forward. This capital raise will be a win-win for us all. You can trust, as always, that your investment in Wema Bank will produce exceeding returns. This is our promise to you.”