Wema Bank Plc has made a notable impact on Nigeria's financial landscape with its impressive Q3 2024 financial results. The bank reported a staggering 174% increase in Profit Before Tax (PBT), reaching N60.62 billion compared to N22.13 billion during the same period in 2023. This substantial growth showcases Wema Bank’s resilience and strong performance, despite a challenging economic environment.
Wema Bank’s unaudited Q3 results, filed with the Nigerian Exchange Group (NGX), reveal significant growth across multiple metrics. The bank's share price rose to N8 per share as of October 30, marking a year to date (YtD) increase of 42.86%. This rise outpaced the broader market benchmark, which recorded a 31.09% YtD increase.
Gross Earnings Grew by 91% to N288.32 billion, up from N150.90 billion in Q3 2023.
Interest Income Up 81% year-over-year (y/y) to N229.11 billion.
Non Interest Income Saw a substantial 144% y/y increase to N59.21 billion.
Wema Bank also maintained a robust balance sheet, with total assets growing by 38% from N2.24 trillion in FY 2023 to N3.084 trillion in Q3 2024. The bank's deposit base has expanded 23% year-to-date to reach N2.292 trillion, while loans and advances have grown 25% to N1.003 trillion. A Non Performing Loan (NPL) ratio of 3.19% further illustrates Wema Bank’s healthy financial position.
These results underscore Wema Bank's sustained growth and operational efficiency. The Return on Equity (ROAE) stood at 38.62%, and the Pre-Tax Return on Assets (ROAA) was 2.64%, both reflecting positive profitability ratios. Additionally, the bank's Capital Adequacy Ratio (CAR) of 14.06% and a Cost to Income Ratio (CIR) of 60.47% demonstrate strong management of resources and costs.
Moruf Oseni, Wema Bank’s Managing Director and CEO, attributes the Q3 success to a consistent focus on growth and innovation. Oseni emphasized, Our Q3 2024 numbers speak to our resilience despite a tough operating environment. We will sustain our growth trajectory into 2025. He highlighted the 91.07% growth in gross earnings and improvements to the bank's balance sheet as central achievements.
Moruf Oseni’s leadership is pivotal to Wema Bank's transformation. Recently, he was awarded the prestigious Fellowship of the Chartered Institute of Bankers of Nigeria (CIBN). This recognition, the highest membership level at CIBN, honors Oseni’s remarkable contributions to the financial sector and his commitment to innovation.
Wema Bank has made significant strides in digital banking. Oseni spearheaded the launch of ALAT, Africa’s first fully digital bank, revolutionizing how Nigerians access financial services. In early 2024, he further disrupted the industry with the launch of CoopHub, a digital solution specifically designed for cooperative societies to improve productivity and simplify financial management.
These pioneering innovations demonstrate Oseni’s drive to create impactful solutions that address evolving market needs. His approach has positioned Wema Bank as a leader in digital banking within Nigeria and beyond.
Wema Bank’s Q3 2024 results show a strong foundation for continued growth. The focus on digital transformation and customer-centric services promises to maintain the bank's upward trajectory into 2025 and beyond. With its strong financial metrics, innovation focused leadership, and commitment to excellence, Wema Bank is setting the stage for sustained success in the Nigerian financial sector.