In the competitive world of banking, few institutions have managed to stand out with their exceptional performance. Wema Bank is one such institution that has consistently delivered outstanding results. The bank's 2024 financial performance is a testament to its strength and resilience.
A Record-Breaking Year
Wema Bank's profit before tax grew by an impressive 135% to N102.51 billion in 2024, compared to N43.59 billion in 2023. This remarkable growth is a reflection of the bank's strong financial performance and its ability to adapt to changing market conditions.
Key Highlights
The bank's impressive performance can be attributed to several factors, including:
- Gross Earnings: Wema Bank's gross earnings grew by 92% to N432.34 billion in 2024, driven by strong growth in interest income and non-interest income.
- Interest Income: The bank's interest income grew by 92% to N353.54 billion in 2024, driven by increased lending activities and higher interest rates.
- Non-Interest Income: Wema Bank's non-interest income grew by 91% to N78.80 billion in 2024, driven by increased fees and commission income.
- Loans and Advances: The bank's loans and advances grew by 50% to N1.20 trillion in 2024, driven by increased lending activities.
- Deposit Base: Wema Bank's deposit base grew by 36% to N2.52 trillion in 2024, driven by increased customer deposits.
A Bright Future Ahead
Wema Bank's exceptional performance in 2024 is a testament to its strength and resilience. The bank's strong growth in gross earnings, interest income, and non-interest income, combined with its expanding loan book and deposit base, positions it for continued success in the years to come. With a proposed dividend of N1.00 per share, Wema Bank is set to reward its shareholders for their continued support.
Wema Bank Plc has, through its stockbrokers, Global Asset Management Nigeria Limited and Qualinvest Capital Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 14,286,785,417 ordinary shares of 50 kobo each at N10.45 per share on the basis of two new ordinary shares for every three ordinary shares held as at the close of business on Wednesday, 5 March 2025
Wema Bank records N14.53bn in FX revaluation gains amid Capital Raising - Recapitalization exercise
Wema Bank has seen its income from foreign exchange revaluation increase to N14.53bn at the end of 2024 from N13.60bn in 2023, indicating a 6.78 per cent increase.
This was revealed in its unaudited financial statement for the fourth quarter of 2024, which was filed with the Nigerian Exchange Limited on Thursday.
Forex revaluation gains occur when there is an increase in the value of a bank’s assets and liabilities denominated in foreign currency due to a change in the exchange rate between the foreign currency and the local currency.
Recall that the National Assembly has approved the imposition of a 70 per cent windfall tax on the FX gains of banks that had benefitted from the harmonisation of the segments of the currency market in June 2023.
Wema Bank announced plans to raise an additional N200bn in its final tranche of the recapitalisation exercise. According to a statement from the bank on Wednesday, the additional funds would be raised via a combination of rights issues and a private placement exercise set to go live on April 1, 2025.
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