…proposes N1.00 final dividend per share
Wema Bank has announced a stellar financial performance for the 2024 fiscal year, with its Profit Before Tax (PBT) soaring by an impressive 135 per cent to ₦102.5 billion, underscoring the bank’s relentless drive for growth and profitability.
Building on this momentum, the bank has also proposed a final dividend of N1.00 per share to reward its shareholders, while gearing up for a N150 billion rights issue scheduled to commence in April 2025.
Wema Bank Nigeria released its audited Consolidated Financial Statements for the period ended December 31st, 2024, to the Nigerian Exchange Group (NGX) at the close of the week.
Wema Bank reported a profit before tax of ₦102.51bn, representing an increase of 135 per cent over the ₦43.59bn recorded in the corresponding period in 2023. The Bank also proposed a dividend of N1.00 per share on the back of the impressive result.
The Bank’s Balance sheet remained well structured, diversified, and resilient, with Total Assets growing by 60 per cent to ₦3,585.05bn in FY 2024 from ₦2,240.06bn in FY 2023. The bank also grew its deposit base year on year by 36 percent to ₦2,523.82bn from ₦1,860.57bn reported in FY 2023. Loans and Advances grew by 50 per cent to ₦1,201.21bn in FY 2024 from ₦801.10bn in FY 2023. NPL stood at 3.86 per cent as of end of FY 2024.
The bank recorded improved year-on-year performance as Gross Earnings grew by 92 per cent to ₦432.34bn (FY 2023: ₦225.75bn). Interest Income was up 92 per cent y/y to ₦353.54bn (FY 2023: ₦184.48bn). Also, Non-Interest Income was up 91 per cent y/y to ₦78.80bn (FY 2023: ₦41.27bn).
Return on Equity (ROAE) of 43.60 per cent, Return on Assets (ROAA) of 2.96 per cent, Capital Adequacy Ratio (CAR) of 19.67 per cent, and Cost to Income ratio of 56.23 per cent underscore the commercial bank’s resilience and financial strength.
The Managing Director/CEO of the Bank, Mr Moruf Oseni, stated 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.
“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 per cent. The growth of Gross Earnings by 92 per cent, Total Assets by 60 per cent, and earnings per share at 483.20 kobo shows the core improvements to our balance sheet. In addition, our cost-to-income ratio of 56.23 per cent has witnessed significant improvement from the previous period. Finally, it is important to mention that the Bank’s Capital Raise Program will also commence in April 2025 with a N150bn Rights Issue.
Wema Bank is a leading financial services entity with banking operations across Nigeria. Its leadership position in the digital banking space speaks to its aspirations to liberate Nigerian businesses and entrepreneurs by making digital platforms widely available.
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