Wema Bank to pay N1 final dividend as pre-tax profit soars 135% to N102.5bn

…commences N150bn Rights issue in April

Wema Bank Plc has released its audited consolidated financial statements for the period ended December 31, 2024.

The results at the Nigerian Exchange Group (NGX) show Wema Bank reported profit before tax of N102.51billion, representing an increase of 135 percent over the N43.59billion recorded in the corresponding period in 2023.

The bank also proposed a dividend of N1 per share on the back of the impressive result.

Wema Bank’s balance sheet remained well structured, diversified and resilient with total assets growing by 60 percent to N3.585 trillion in FY 2024 from N2.240 trillion in FY 2023.

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The bank also grew its deposit base year on year by 36 percent to N2.523 trillion from N1.860 trillion reported in FY 2023. Loans and advances grew by 50 percent to N1.201trillion in FY 2024 from N801.10billion in FY, 2023. NPL stood at 3.86 percent as at end of FY 2024.

The bank recorded improved year on year (YoY) performance as gross earnings grew by 92 percent to N432.34billion (FY 2023: N225.75billion). Interest Income was up 92 percent y/y to N353.54billion (FY 2023: N184.48billion). Also, Non-Interest Income was up 91 percent y/y to N78.80billion (FY 2023: N41.27billion).

Return on Equity (ROAE) of 43.60 percent, Return on Assets (ROAA) of 2.96 percent, Capital Adequacy Ratio (CAR) of 19.67 percent and Cost to Income ratio of 56.23 percent underscore the commercial bank’s resilience and financial strength.

Moruf Oseni, Managing Director/CEO, Wema Bank Plc said 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.

“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”, he said.

“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 percent.

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“The growth of Gross Earnings by 92 percent, Total Assets by 60 percent 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 percent 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 N150billion Rights Issue”.