Wema Bank has announced remarkable financial results for the fiscal year 2024, showcasing substantial growth and profitability. The bank’s profit before tax soared to an impressive N102.51 billion, marking a staggering 135% increase compared to the N43.59 billion recorded in the corresponding period of 2023. This exceptional performance underscores the bank’s strategic focus on key areas such as risk management, customer relationship management, and digital banking, which have effectively propelled its financial trajectory. The bank’s board has proposed a dividend of N1.00 per share, reflecting the confidence in its sustained growth and profitability.
The bank’s balance sheet reflects a robust financial position, with total assets expanding by 60% to reach N3.59 billion in FY 2024, up from N2.24 billion in FY 2023. This growth is further complemented by a 36% year-on-year increase in the deposit base, reaching N2.52 billion compared to N1.86 billion in FY 2023. The bank’s loan portfolio also witnessed significant expansion, with loans and advances growing by 50% to N1.2 trillion in FY 2024, up from N801.10 billion in FY 2023. Despite this growth in lending, Wema Bank maintained a healthy non-performing loan ratio of 3.86% at the end of FY 2024, demonstrating prudent risk management practices.
Wema Bank’s financial performance is characterized by strong revenue generation and efficient cost management. Gross earnings surged by an impressive 92% to N432.34 billion in FY 2024, compared to N225.75 billion in FY 2023. This growth was driven by a 92% increase in interest income, which reached N353.54 billion, and a 91% increase in non-interest income, which reached N78.80 billion. The bank’s return on equity stood at a commendable 43.60%, while return on assets reached 2.96%. Furthermore, a capital adequacy ratio of 19.67% and a cost-to-income ratio of 56.23% highlight the bank’s financial strength and operational efficiency.
Mr. Moruf Oseni, the Managing Director/Chief Executive Officer of Wema Bank, attributes the bank’s strong FY 2024 performance to its focused strategy execution in key areas, including risk management, customer relationship management, and digital banking. The bank’s commitment to providing innovative banking products and services to Nigerian businesses and individuals is central to its success. ALAT, Wema Bank’s flagship digital platform, continues to be a driving force in the adoption of digital banking services among Nigeria’s young population. The introduction of ALAT XPlore, a licensed banking app specifically designed for teenagers, further solidifies Wema Bank’s commitment to fostering financial literacy and empowering the next generation of financially responsible individuals.
The bank’s strategic focus on digital innovation, coupled with its commitment to serving Nigerian businesses and individuals, has allowed it to navigate the challenges of a constrained operating environment and achieve robust growth across all financial indicators. The remarkable 135% growth in profit before tax, coupled with the 92% increase in gross earnings and the 60% expansion in total assets, testifies to the effectiveness of the bank’s strategic initiatives. The substantial increase in earnings per share to 483.20 kobo further underscores the bank’s enhanced profitability and value creation for its shareholders.
Looking ahead, Wema Bank has ambitious plans to further strengthen its capital base. The bank intends to raise an additional N200 billion through a combination of rights issues and a private placement exercise, scheduled to commence in April 2025, with a N150 billion rights issue as the first step. This capital raise will provide the bank with the necessary resources to support its continued growth trajectory, expand its operations, and further enhance its digital banking capabilities. Wema Bank’s commitment to innovation, coupled with its strong financial performance and strategic capital raising plans, positions it well for continued success in the Nigerian banking sector.
