Wema Releases Financial Results, Announces N433bn in Gross Earnings

• Wema Bank Plc has announced gross earnings of over N400 billion in the financial year of 2024
• The financial institution also disclosed that its profit increased for the period, driven by higher interest income
• Wema Bank plans to raise N200 billion, including a N150 billion Rights Issue set to go live from April 1

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Wema Bank Plc has reported an impressive financial performance for the year ending December 31, 2024.

In its audited financial statements, the bank's gross earnings soared to N433.43 billion, while Profit before tax increased by 141% to N102.5 billion.

The increase recorded was attributed to Wema Bank's interest rates and its strengthened loan and investment portfolio throughout the year.

In line with these impressive financial results, the Board of Directors has proposed a dividend payment of N1.00 per share for the 2024 financial year.

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Key highlights from Wema Bank's financial report

Here is a breakdown of Wema Bank's financial performance.

Loan and Investment Income

High interest rates driven by the Central Bank of Nigeria's policies aimed at combating inflation, Wema Bank significantly expanded its loan portfolio, with gross loans amounting to N1.237 trillion, of which N1.125 trillion were long-term loans.

The bank earned N233.85 billion from loans, a 91% increase compared to the previous year, with loans constituting approximately 66% of its total interest income, Punch reports.

Additionally, income from government investments, such as bonds and treasury bills, surged by 98% to N113.68 billion, contributing about 32% to the bank's interest income.

On the investment side, the bank held N712 billion in federal government bonds and N111.11 billion in treasury bills, bolstering its asset base with safer investments.

Apart from interest income, Wema Bank saw a significant rise in non-interest revenue, fueled by its digital banking innovations and diverse service offerings. Net fees and commission income climbed to N55.576 billion, driven by:

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• FX transactions (N15.039 billion)
• Electronic products (N14.073 billion)
• Management fees (N8.023 billion)
• Account maintenance fees (N7.364 billion)

Wema Bank’s total assets also expanded to N3.593 trillion, with customer deposits accounting for a major share. Shareholders’ funds rose to N256.421 billion, supported by:

• Retained earnings of N103.251 billion
• Share capital of N10.715 billion
• Share premium of N56.431 billion

Zenith Bank announces massive profit

Earlier, Legit.ng reported that Zenith Bank Plc announced it recorded gross earnings of N3.97 trillion in 2024, which is an 86% increase from N2.12 trillion in 2023.

The bank stated this in its audited financial results released on the Nigerian Exchange (NGX).

Zenith Bank's growth was driven by a 138% rise in interest income, bolstered by investments in high-yield government securities and an expanding loan book.

Profit before tax (PBT) climbed 67% to N1.3 trillion in 2024 from N796 billion in the previous year, supported by revenue growth and effective treasury portfolio management.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng