Wema Bank grows profit by 135% to N102.5b, proposes N1.00 final dividend
…commences N150bn Rights issue in April 2025
Wema Bank Nigeria has released its audited Consolidated Financial Statements for the period ended December 3st, 2024, to the Nigerian Exchange Group (NGX).
Wema Bank reported profit before tax of N102.51billion, representing an increase of 135 per cent over the N43.59 billion recorded in the corresponding period in 2023.
The Bank also proposed a dividend of N1.00 per share on the back of the impressive result.
The Bank’s Balance sheet remained well structured, diversified and resilient with Total Assets growing by 60% to N3,585.05 billion in FY 2024 from N2,240.06 billion in FY 2023.
The bank also grew its deposit base year on year by 36 per cent to 2,523.82billion from N1,860.57 billion reported in FY 2023. Loans and Advances grew by 50 per cent to N1,201.21 billion in FY 2024 from N801.10 billion in FY, 2023. NPL stood at 3.86per cent as at end of FY 2024.
The bank recorded improved year on year performance as Gross Earnings grew by 92per cen to N432.34 billion (FY 2023: N225.75 billion). Interest Income was up 92per cen y/y to N353.54 billion (FY 2023: N184.48bn). Also, Non-Interest Income was up 91% y/y to N78.80 billion (FY 2023: N41.27 billion).
Return on Equity (ROAE) of 43.60per cen, Return on Assets (ROAA) of 2.96 per cent Capital Adequacy Ratio (CAR) of 19.67per cent and Cost to Income ratio of 56.23per cent underscore the commercial bank’s resilience and financial strength.
The Managing Director/CEO of the Bank, Wema Bank, Mr. Moruf Oseni in a statement stated that the strong 2024 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.
“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 teenagers ages 13-17 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 135per cent. The growth of Gross Earnings by 92per cent, Total Assets by 60per cent and earnings per share at 483.20kobo 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 Program will also commence in April 2025 with a N150billion Rights Issue.”
