Wema Bank Reports 135% Surge in Profit
Wema Bank has announced a remarkable 135% increase in its profit before tax, reaching N102.51 billion in 2024. This impressive growth comes in comparison to the N43.59 billion recorded in 2023. The bank’s strong financial performance has also led it to propose a dividend of N1.00 per share, signaling its commitment to rewarding shareholders.
Strong Financial Growth
Wema Bank’s balance sheet remains robust, diversified, and resilient. Total assets surged by 60%, reaching N3.585 trillion in 2024, up from N2.240 trillion the previous year. This growth in assets reflects the bank’s ongoing strength and ability to adapt to a dynamic economic environment. Alongside this, its deposit base grew by 36%, reaching N2.523 trillion, compared to N1.860 trillion in 2023.
The bank’s loan book also saw a significant increase, with loans and advances rising by 50%, reaching N1.201 trillion in 2024, up from N801.10 billion in 2023. Despite this growth, non-performing loans stood at a manageable 3.86% by the end of the year, highlighting Wema Bank’s prudent lending practices.
Solid Earnings and Revenue Growth
Wema Bank recorded an impressive 92% growth in gross earnings, rising to N432.34 billion in 2024, compared to N225.75 billion in 2023. This growth was driven by a 92% increase in interest income, which reached N353.54 billion, up from N184.48 billion the previous year. Additionally, non-interest income climbed by 91% to N78.80 billion.
The bank’s performance metrics were equally strong, with a Return on Equity of 43.60% and a Return on Assets of 2.96%. The bank’s Capital Adequacy Ratio stood at 19.67%, indicating its solid financial foundation.
Cost-to-Income Ratio and Future Outlook
Wema Bank’s Cost-to-Income ratio was 56.23%, reflecting operational efficiency and a positive trend in its financial management. This ratio shows significant improvement from the previous period, underlining the bank’s commitment to managing costs while growing its operations.
Managing Director Moruf Oseni credited the bank’s strong 2024 performance to its focus on strategic risk management, building customer relationships, and investing in digital banking. He pointed to the success of ALAT, the bank’s flagship digital platform, which has gained significant traction among Nigeria’s younger population. Notably, ALAT XPlore, a banking app designed for teenagers, has further established Wema Bank as a leader in digital banking innovation.
Resilience Amidst Challenges
Despite operating in a challenging environment, Wema Bank has consistently demonstrated growth across all financial indicators. Oseni emphasized that the standout achievement for 2024 was the 135% surge in profit before tax, a testament to the bank’s resilience and strategic focus.
Looking ahead, Oseni also announced that Wema Bank will kick off a N150 billion rights issue in April 2025 as part of its Capital Raise Programme. This initiative reflects the bank’s ongoing commitment to strengthening its capital base and supporting future growth.
