Quick Summary:
- Gross Earnings: N433.43 billion
- Profit Before Tax: N102.5 billion (↑141%)
- Dividend Proposed: N1.00 per share
- Loan Growth: N1.237 trillion in gross loans
- Non-Interest Income: N55.576 billion
- Share Price (2025): N10.70 (↑18.8%)
Wema Bank’s 2024 results reflect strong strategic growth, digital innovation, and resilience despite a high-interest environment.
Wema Bank Delivers Strongest Financial Performance in Five Years
Wema Bank Plc has reported its best financial results in at least five years, with impressive growth in both gross earnings and profit.
According to its audited financial statements for the year ending December 31, 2024, the bank’s gross earnings rose to N433.43 billion, driven by strong interest income and strategic asset growth.
Profit Hits Record High
Profit before tax grew by 141% to reach N102.5 billion—a record-breaking milestone. This growth was boosted by rising interest rates and a stronger loan and investment portfolio.
To reward shareholders, the Board of Directors has proposed a dividend of N1.00 per share for the 2024 financial year.
Loans and Investments Power Interest Income
Wema Bank’s main sources of income in 2024 were loans and government securities.
- The bank earned N233.85 billion from loans, a 91% increase from 2023. Loans made up 66% of total interest income.
- It also earned N113.68 billion from investments in government securities like bonds and treasury bills. This was a 98% increase, contributing 32% of total interest income.
The growth was supported by the Central Bank of Nigeria’s high-interest rate policy, which helped the bank earn more from lending and low-risk investments.
Loan and Investment Portfolio
Wema Bank’s total loans reached N1.237 trillion, with N1.125 trillion being long-term loans.
On the investment side, the bank held:
- N712 billion in Federal Government Bonds
- N111.11 billion in Treasury Bills
While loans earned strong returns, they also came with some risk. The bank set aside N36 billion as Expected Credit Loss (ECL) to cover potential defaults. Most of this—N27.33 billion—was for high-risk loans (Stage 3 loans).
After accounting for the ECL, the bank’s net loans stood at N1.201 trillion.
Rising Costs and Interest Expenses
Despite strong income, Wema Bank faced rising costs due to the high-interest rate environment:
- Interest on deposits rose by 732.9%
- Borrowing costs increased by 139.9%
- The bank paid N103.4 billion in interest on customer deposits
These rising costs put pressure on the bank’s net interest margin. However, strong net interest income helped to cushion the impact.
Growth in Non-Interest Income
Wema Bank also made significant gains from non-interest income, thanks to its digital banking products and service innovation.
Net fees and commission income rose to N55.576 billion, driven by:
- FX transactions: N15.039 billion
- Electronic products: N14.073 billion
- Management fees: N8.023 billion
- Account maintenance fees: N7.364 billion
Digital platforms like ALAT Xplore (for teenagers) and Coop Hub (for cooperative societies) contributed to this growth by increasing transactions and service usage.
Balance Sheet: Assets and Capital Growth
Wema Bank’s total assets grew to N3.593 trillion, supported largely by customer deposits.
Shareholders’ funds rose to N256.421 billion, which included:
- N103.251 billion in retained earnings
- N10.715 billion in share capital
- N56.431 billion in share premium
To meet the Central Bank’s new capital requirements, the bank launched a N40 billion rights issue. It also plans to raise N200 billion in new capital:
“To meet the new CBN capital requirements, the bank will be raising N200 billion in new capital as approved by the shareholders at the last Annual General Meeting. This will be broken down into N150 billion Rights Issue and N50 billion in Special Placement.” – Chairman, 2024 Annual Report
Share Performance
As of 2025, Wema Bank’s share price stands at N10.70, reflecting an 18.8% increase for the year.
