Wema Bank posts strong Q3 2024 results, with a 174% profit increase and 91% rise in Gross Earnings, reflecting resilience in a challenging economy.
[dropcap]W[/dropcap]ema Bank Nigeria has announced impressive third-quarter financial results for 2024, reporting a 174% increase in profit before tax (PBT) to ₦60.62 billion, compared to ₦22.13 billion in the corresponding period of 2023.
Released to the Nigeria Exchange Group (NGX), the unaudited Consolidated Financial Statements reflect significant growth across key metrics, underscoring the bank’s strong operational resilience.
The bank’s balance sheet reveals a robust 38% asset growth, with total assets reaching ₦3.084 trillion in Q3 2024, up from ₦2.240 trillion at the close of FY 2023.
Deposits also grew substantially, rising 23% year-to-date to ₦2.292 trillion from ₦1.860 trillion in FY 2023. Loans and advances expanded by 25%, totalling ₦1.003 trillion in Q3 2024. The bank maintained a manageable Non-Performing Loan (NPL) ratio of 3.19% for the period.
Gross earnings surged by 91% to ₦288.32 billion from ₦150.90 billion in Q3 2023. Interest Income rose 81% year-over-year to ₦229.11 billion, and Non-Interest Income increased by 144% to ₦59.21 billion, reflecting successful income diversification efforts.
In terms of profitability metrics, the bank recorded a Return on Average Equity (ROAE) of 38.62%, Pre-Tax Return on Average Assets (ROAA) of 2.64%, Capital Adequacy Ratio (CAR) of 14.06%, and a Cost to Income ratio of 60.47%. These indicators highlight the bank’s efficient asset management and financial stability.
Mr. Moruf Oseni, Managing Director and CEO of Wema Bank, expressed satisfaction with the Q3 results, attributing the strong performance to strategic resilience despite Nigeria’s challenging economic landscape. “Our Q3 2024 numbers speak to our resilience.
We will sustain our growth trajectory into 2025, with PBT up 174% and Gross Earnings increasing by 91%,” Mr. Oseni stated. “Our Cost to Income ratio of 60.48% demonstrates notable improvement, underscoring our ongoing efficiency enhancements.”
These results reflect Wema Bank’s strategic approach to growth, positioning it for continued progress as it heads into 2025.
The bank’s Q3 achievements underscore a solid foundation for further strengthening its balance sheet and enhancing shareholder value in Nigeria’s competitive banking sector.
