Wema Bank Reports Stellar FY 2024 Results with 135% Profit Surge, Commences N150bn Rights Issue in April
Wema Bank Nigeria has announced its audited Consolidated Financial Statements for the fiscal year ending December 31, 2024, highlighting a significant financial turnaround. The bank’s profit before tax surged by 135% to ₦102.51 billion, up from ₦43.59 billion in the previous year. In line with this strong performance, Wema Bank has proposed a final dividend of ₦1.00 per share.
The bank’s balance sheet remains robust, with total assets increasing by 60% to ₦3,585.05 billion, compared to ₦2,240.06 billion in FY 2023. Deposits rose by 36% year-on-year, reaching ₦2,523.82 billion, while loans and advances expanded by 50% to ₦1,201.21 billion. The non-performing loan (NPL) ratio stood at a manageable 3.86% at the end of FY 2024.
Wema Bank also achieved impressive year-on-year growth in gross earnings, which climbed by 92% to ₦432.34 billion, up from ₦225.75 billion in FY 2023. Interest income increased by 92% to ₦353.54 billion, while non-interest income rose by 91% to ₦78.80 billion.
Key financial ratios underscore the bank’s strength, with a return on equity (ROAE) of 43.60%, a return on assets (ROAA) of 2.96%, a capital adequacy ratio (CAR) of 19.67%, and a cost-to-income ratio of 56.23%.
Mr. Moruf Oseni, Managing Director/CEO of Wema Bank, credited the bank’s strong fiscal performance to effective execution of strategies focused on risk management, customer relationship enhancement, and digital banking innovation. He emphasized the bank’s commitment to supporting Nigerian businesses and individuals with innovative products and services, noting the success of ALAT, the bank’s flagship digital platform. A highlight is ALAT XPlore, an app designed for teenagers aged 13-17 to build financial literacy and responsibility.
Despite a challenging operating environment, Wema Bank has shown remarkable growth across all financial metrics, reflecting the resilience of its workforce. The bank’s profit before tax, gross earnings growth, total asset expansion, and improved cost-to-income ratio are indicative of the strength of its balance sheet. Additionally, the bank is set to launch a N150 billion rights issue in April 2025 as part of its capital-raising strategy.