Wema Bank’s financial performance in 2024 showcased robust growth across key indicators, solidifying its position as a prominent player in the Nigerian banking sector. The bank’s unaudited financial statement for the fourth quarter of 2024, filed with the Nigerian Exchange Limited, revealed a significant upswing in revenue, profit, and income from foreign exchange transactions. This surge in financial performance was driven by various factors, including the bank’s strategic initiatives, favorable market conditions, and a focus on enhancing customer value. The bank’s commitment to innovation and digital transformation also played a crucial role in its success, attracting a wider customer base and optimizing operational efficiency.
A notable aspect of Wema Bank’s financial performance was the substantial increase in income from foreign exchange revaluation. This income stream, which arises from fluctuations in exchange rates, grew by 6.78% to N14.53 billion in 2024 from N13.60 billion in 2023. This increase reflects the bank’s effective management of its foreign currency-denominated assets and liabilities, capitalizing on favorable exchange rate movements. Furthermore, the bank recorded N325.16 million in FX revaluation income for the fourth quarter alone, demonstrating consistent performance throughout the year. This performance is particularly significant in the context of the National Assembly’s approval of a 70% windfall tax on banks’ FX gains following the harmonization of the currency market segments in June 2023.
Wema Bank’s income from foreign exchange transactions also witnessed remarkable growth, surging by 262.66% to N15.04 trillion in 2024 from N4.15 billion in the previous year. This substantial increase underscores the bank’s enhanced capabilities in facilitating international trade and foreign currency transactions for its customers. The bank’s strategic focus on expanding its presence in the foreign exchange market and offering competitive exchange rates contributed to this significant growth. Moreover, the overall revenue for Wema Bank nearly doubled in 2024, reaching N430.26 billion compared to N226.91 billion in 2023. This remarkable revenue growth was primarily driven by a significant boost in interest income, which rose to N351.83 billion from N185.64 billion, and a substantial increase in net fee and commission income, which jumped to N55.62 billion from N24.96 billion.
The combined effect of these positive developments resulted in a remarkable 146.84% increase in Wema Bank’s profit, reaching N88.83 billion in 2024 compared to N35.99 billion in 2023. This impressive profit growth reflects the bank’s successful implementation of its strategic initiatives, cost optimization measures, and enhanced operational efficiency. The bank’s focus on delivering innovative financial solutions and providing exceptional customer service further contributed to its strong financial performance. These achievements underscore Wema Bank’s commitment to creating value for its shareholders and stakeholders while contributing to the growth of the Nigerian economy.
Looking ahead, Wema Bank has ambitious plans to further strengthen its capital base and expand its operations. The bank intends to raise an additional N200 billion in its final tranche of the recapitalization exercise. This capital raise will be executed through a combination of rights issues and a private placement exercise, scheduled to commence on April 1, 2025. This capital injection will further enhance the bank’s financial stability and provide the necessary resources to support its growth strategy. The bank had previously launched a N40 billion rights issue in December 2023, which received approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) in 2024.
Moruf Oseni, the Managing Director/Chief Executive Officer of Wema Bank, expressed confidence in the successful completion of the capital raise program. He emphasized the bank’s commitment to transparency throughout the process and assured shareholders and stakeholders of regular updates. Oseni highlighted Wema Bank’s transformation into a leading innovative bank in Nigeria, emphasizing its dedication to achieving strategic aspirations and building a formidable presence in the African financial services landscape. He reinforced the bank’s commitment to delivering exceeding returns on investments, further solidifying its position as a trusted and reliable financial institution.
