Wema Bank Reports N102bn Profit In 2024

Wema Bank Plc has recorded its strongest financial performance in five years, reporting a 141 percent surge in pre-tax profit to N102.5 billion for the financial year ending December 31, 2024. The bank’s gross earnings climbed to N433.43 billion, reflecting its ability to capitalise on rising interest rates and expand its asset base through strategic investments and loan disbursements.

A key driver of this growth was the bank’s interest income from loans and investments, which surged significantly. Wema Bank earned N233.85 billion from loans, marking a 91 percent increase from the previous year, with lending activities accounting for 66 percent of total interest income. The bank also saw substantial gains from investments in government securities, generating ₦113.68 billion, up 98 percent year-over-year, as it increased its holdings in federal government bonds (N712 billion) and treasury bills (N111.11 billion). This strategic balance between high-yield lending and low-risk investments allowed the bank to strengthen its revenue streams.

Despite its strong earnings, Wema Bank, like other financial institutions, faced rising funding costs due to the Central Bank of Nigeria’s monetary tightening. Interest expenses on customer deposits surged by 732.9 percent, while borrowing costs jumped 139.9 percent, putting pressure on net interest margins. The bank paid N103.4 billion in total interest on deposits, reflecting the high cost of funds in the current economic climate. However, strong net interest income growth helped mitigate these pressures, ensuring profitability remained strong.

Beyond interest earnings, Wema Bank’s non-interest income also saw notable growth, fueled by its digital banking expansion and diversified services. Net fees and commission income rose to N55.576 billion, supported by foreign exchange transactions, electronic banking fees, management fees, and account maintenance charges. The bank’s digital innovations, particularly ALAT Xplore, a mobile banking app tailored for teenagers, and Coop Hub, a financial management platform for cooperative societies, contributed to this revenue boost by increasing account openings, fund transfers, and transaction-based fees.

On the balance sheet, Wema Bank’s total assets grew to N3.593 trillion, with customer deposits making up a significant portion. Shareholders’ funds increased to N256.421 billion, driven by retained earnings of N103.251 billion, share capital of N10.715 billion, and share premium of N56.431 billion. To strengthen its capital base in line with regulatory requirements, Wema Bank launched a N40 billion rights issue and outlined plans to raise an additional N200 billion. This capital raise will be split into N150 billion through a rights issue and N50 billion through a special placement, as approved by shareholders at the last Annual General Meeting (AGM).

Amid these financial milestones, Wema Bank’s share price closed at N10.7, reflecting an 18.8 percent increase in 2025. In recognition of its strong performance, the Board of Directors has proposed a N1.00 per share dividend for the 2024 financial year.

Wema Bank’s record-breaking profit, expanding asset base, and digital banking growth reinforce its position as a leading player in Nigeria’s financial sector. With a focus on innovation, risk management, and strategic capital expansion, the bank remains well-positioned for sustained growth in the years ahead.