Wema Bank Plc Achieves Record Financial Performance in 2024, Boosted by Loans, Investments, and Digital Innovation

Wema Bank Plc has posted its best financial results in at least five years, showcasing a dramatic rise in gross earnings and profitability for the year ending December 31, 2024.

According to its audited financial statements, gross earnings soared to N433.43 billion, fueled by strong interest income and strategic asset growth. Profit before tax surged by 141% to N102.5 billion—a historic high—driven by high interest rates and an enhanced loan and investment portfolio. The Board of Directors proposed a dividend of N1.00 per share for 2024, reflecting confidence in the bank’s robust performance.

Loans and Investments Drive Interest Income Surge

Wema Bank’s 2024 earnings were propelled by its lending and investment activities. Interest income from loans reached N233.85 billion, a 91% jump from the prior year, accounting for 66% of total interest income. Investments in government securities, such as bonds and treasury bills, generated N113.68 billion—up 98%—contributing 32% to the interest income pool. The bank capitalized on elevated interest rates, spurred by the Central Bank of Nigeria’s (CBN) inflation-fighting measures, while expanding its loan book and bolstering safer government securities.

Gross loans totaled N1.237 trillion, with long-term loans comprising N1.125 trillion. On the investment side, the bank held N712 billion in Federal Government Bonds and N111.11 billion in Treasury Bills—low-risk assets that balanced its portfolio. However, to mitigate risks of loan defaults, Wema Bank reserved N36 billion for Expected Credit Losses (ECL), with N27.33 billion allocated to Stage 3 (severely impaired) loans. After adjustments, net loans stood at N1.201 trillion.

Rising Costs Offset by Strong Revenue

Like many Nigerian banks, Wema Bank faced higher funding costs in the high-interest-rate climate. Interest expenses on deposits skyrocketed by 732.9%, with total interest paid to customers hitting N103.4 billion. Borrowing costs also climbed 139.9%, squeezing net interest margins. Despite these pressures, the bank’s substantial interest income growth cushioned the impact, maintaining profitability.

Non-Interest Income Bolstered by Digital Growth

Wema Bank’s non-interest revenue also shone, climbing to N55.576 billion, thanks to its digital banking push and diversified offerings. Key drivers included FX transactions (N15.039 billion), electronic products (N14.073 billion), management fees (N8.023 billion), and account maintenance fees (N7.364 billion). Innovations like ALAT Xplore—Nigeria’s first teen-focused mobile banking app—and Coop Hub, a platform for cooperative societies, likely fueled this growth by boosting account openings, card usage, and transaction fees.

Balance Sheet Strength and Capital Raising

Total assets grew to N3.593 trillion, underpinned by customer deposits. Shareholders’ funds rose to N256.421 billion, supported by retained earnings of N103.251 billion, share capital of N10.715 billion, and a share premium of N56.431 billion. To further fortify its capital base, the bank launched a N40 billion rights issue. Additionally, the Chairman reiterated in the 2024 Annual Report: “To meet the new CBN capital requirements, the bank will be raising N200 billion in new capital as approved by shareholders at the last Annual General Meeting, comprising a N150 billion Rights Issue and N50 billion Special Placement.”

Wema Bank’s share price closed at N10.7, up 18.8% in 2025, reflecting investor optimism in its record-breaking year and strategic moves.