Wema Bank’s profit jumps 135% to N102.5bn

Wema Bank grew its profit before tax to N102.51bn, representing an increase of 135 per cent over the N43.59bn recorded in the corresponding period in 2023.

This was according to a statement made available to The PUNCH on Sunday.

According to the statement, the bank also proposed a dividend of N1.00 per share on the back of the impressive result.

Its balance sheet indicated that total assets grew by 60 per cent to N3.59bn in FY 2024 from N2.24bn in FY 2023. The bank also grew its deposit base year on year by 36 per cent to N2.52bn from N1.86bn reported in FY 2023. Loans and advances grew by 50 per cent to N1,200bn in FY 2024 from N801.10bn in FY 2023. Non-performing loans stood at 3.86 per cent as of the end of FY 2024.

The bank recorded improved year-on-year performance as gross earnings grew by 92 per cent to N432.34bn (FY 2023: N225.75bn). Interest income was up 92 per cent y/y to N353.54bn (FY2023: N184.48bn). Also, non-interest income was up 91 per cent y/y to N78.80bn (FY 2023: N41.27bn). Return on equity of 43.60 per cent, return on assets (ROAA) of 2.96 per cent, capital adequacy ratio of 19.67 per cent and cost-to-income ratio of 56.23 per cent underscore the commercial bank’s resilience and financial strength.

Commenting on the results, the managing director/chief executive officer of the bank, Mr Moruf Oseni, stated that the strong 2024 FY performance stems from the commercial bank’s focus on strong strategy execution in the key areas of risk management, customer relationship management and digital banking.

She said, “Our people are committed to the institution’s founding ethos of supporting Nigerian businesses and individuals with the most innovative banking products and services. ALAT, our flagship digital platform, continues to lead in the adoption of digital banking services across the increasingly young Nigerian populace. An example of this innovation is ALAT XPlore, the first licensed banking app for teenagers designed to help ages 13 to 17 build their money management skills, achieve their financial goals and become financially responsible. Despite the constrained operating environment, the bank continues to experience strong growth across all its financial indices, reflecting the quality and resilience of the workforce.

“The performance is headlined by impressive improvements in profit before tax, which grew strongly by 135 per cent. The growth of gross earnings by 92 per cent, total assets by 60 per cent and earnings per share at 483.20 kobo shows the core improvements to our balance sheet. In addition, our cost-to-income ratio of 56.23 per cent has witnessed significant improvement from the previous period. Finally, it is important to mention that the bank’s capital raise programme will also commence in April 2025 with a N150bn rights issue.”

Earlier in the year, Wema Bank announced plans to raise an additional N200bn in its final tranche of the recapitalisation exercise via a combination of rights issues and a private placement exercise set to go live on April 1, 2025.

Wema Bank is a leading financial services entity with banking operations across Nigeria; its leadership position in the digital banking space speaks to its aspirations to liberate Nigerian businesses and entrepreneurs by making digital platforms widely available.