Wema Bank reports record growth in 2024: profit soars 135%, assets up 60%

[dropcap]W[/dropcap]ema Bank Nigeria has announced its impressive financial results for the year ending December 31, 2024, revealing a strong performance that underscores the bank’s continued growth and resilience in a challenging operating environment.

The bank reported a profit before tax of ₦102.51 billion, marking a remarkable 135% increase from the ₦43.59 billion recorded in 2023. Following this stellar performance, Wema Bank has proposed a dividend of ₦1.00 per share.

The bank’s financial strength was reflected in a well-structured and diversified balance sheet, with total assets increasing by 60%, rising from ₦2,240.06 billion in FY 2023 to ₦3,585.05 billion in FY 2024.

Wema Bank also saw a significant year-on-year growth in its deposit base, which surged by 36% to ₦2,523.82 billion, up from ₦1,860.57 billion in 2023.

Additionally, the bank’s loans and advances grew by 50%, reaching ₦1,201.21 billion, compared to ₦801.10 billion in FY 2023. Despite this growth, the bank’s non-performing loan (NPL) ratio stood at a manageable 3.86% as of the end of FY 2024.

Wema Bank’s overall earnings performance also reflected this growth. Gross earnings increased by 92%, rising from ₦225.75 billion in FY 2023 to ₦432.34 billion in FY 2024.

Interest income grew by 92% to ₦353.54 billion, up from ₦184.48 billion in 2023, while non-interest income saw an equally impressive increase of 91%, reaching ₦78.80 billion, compared to ₦41.27 billion in the previous year.

Key financial ratios for Wema Bank also demonstrated the bank’s resilience and profitability. Return on equity (ROAE) stood at an impressive 43.60%, while return on assets (ROAA) was 2.96%.

The bank’s capital adequacy ratio (CAR) of 19.67% reflects a strong capital base, and its cost-to-income ratio improved to 56.23%, a notable enhancement compared to prior periods.

Mr. Moruf Oseni, the Managing Director/CEO of Wema Bank, attributed the strong 2024 financial results to the bank’s focused strategy in risk management, customer relationship management, and digital banking.

He highlighted the success of ALAT, Wema Bank’s flagship digital platform, which continues to lead the way in digital banking adoption, especially among Nigeria’s young population.

An example of this innovation is ALAT XPlore, the first licensed banking app for teenagers aged 13-17, aimed at helping them develop money management skills and build a foundation for financial responsibility.

Despite the challenges in the operating environment, Wema Bank’s solid performance in key areas such as profit before tax (up 135%), gross earnings (up 92%), and total assets (up 60%) reflects the bank’s strong strategic execution and the resilience of its workforce.

The bank’s growth in earnings per share, which stood at 483.20 kobo, further highlights the positive trajectory.

Looking ahead, Wema Bank is set to continue its growth trajectory with the commencement of a N150 billion Rights Issue in April 2025, part of the bank’s capital raise program.

This initiative will bolster the bank’s financial position and support its expansion plans.