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Tag: Moruf Oseni

  • Wema Bank posts Profit Before Tax of ₦60.62b

    Wema Bank posts Profit Before Tax of ₦60.62b

    Wema Bank Nigeria has posted Profit Before Tax (PBT) of N60.62billion according to the bank’s unaudited Consolidated Financial Statements for the period ended September 30, 2024 released to the Nigerian Exchange Group. 

    This represents an increase of 174 per cent over the ₦22.13billion recorded in the corresponding period in 2023.

    Wema Bank’s balance sheet remained well structured with total assets growing by 38 per cent to ₦3,084.27 trillion in Q3 2024 from ₦2,240.06trillion in FY 2023. 

    The bank also grew its deposit base year-to-date by 23 per cent to ₦2,292.30billion from ₦1,860.57billion reported in FY 2023. 

    Loans and Advances grew by 25 per cent to ₦1003.28billion in Q3 2024 from ₦801.10billion in FY, 2023. NPL stood at 3.19 per cent as at Q3 2024. 

    The bank recorded an improved Q3 performance as Gross Earningsgrew by 91 per cent to ₦288.32billion (Q3 2023: ₦150.90bn)). Interest Income was up 81 per cent y/y to ₦229.11billion (Q3 2023: ₦126.67bn). 

    Non-Interest Income moved up 144 per cent y/y to ₦59.21billion (Q3 2023:₦24.23bn).

    Return on Equity (ROAE) peaked at 38.62 per cent , Pre-Tax Return on Assets (ROAA) of 2.64 per cent, Capital Adequacy Ratio (CAR) of 14.06 per cent and Cost to Income ratio of 60.47 per cent speak to the resilience of the brand.

    Wema Bank’s Managing Director/CEO Mr. Moruf Oseni said: “Our Q3 2024 numbers speaks to our resilience despite a tough operating environment. We will sustain our growth trajectory into 2025. 

    “The performance is headlined by impressive improvements in Profit before Tax which grew strongly by 174 per cent. The growth of Gross Earnings by 91.07 per cent , Total Assets by 38 per cent and earnings per share at 328.1kobo shows the core improvements to our balance sheet. 

    “In addition, our cost to income ratio at 60.48per cent has witnessed significant improvement from the previous period,” Oseni said.

  • Recapitalisation: Wema Bank raises N40b in first rights issue

    Recapitalisation: Wema Bank raises N40b in first rights issue

    Wema Bank has successfully concluded the first tranche of its recapitalisation exercise having secured all relevant regulatory approvals for the allotment of its N40bn Rights Issue which was initiated in December 2023.

    It may be recalled that the Central Bank of Nigeria (CBN) in March 2024, launched a recapitalisation programme requiring commercial banks to raise fresh capital in alignment with the minimum requirement for their respective banking licenses, within a 24-month timeline spanning April 1, 2024, to March 31, 2026.

    The goal of this recapitalisation programme is to simultaneously boost the Nigerian economy and strengthen the financial services industry.

    Consequently, Wema Bank in December 2023 launched a N40bn Rights issue which has now been approved by the CBN and the Securities and Exchange Commission (SEC).

    Read Also: ‘Wema Bank license not under threat’

    In a statement made to the public by the Bank, Moruf Oseni, Wema Bank’s Managing Director and CEO, reiterated the Bank’s resolve in retaining its Commercial Banking license with National Authorisation, adding that the N40bn Rights Issue is a step in that direction.

    “We are delighted to announce the conclusion of the 1st tranche of our Capital Raise Programme, after obtaining the relevant approvals of all regulatory authorities. Our move to commence our Capital Raise Programme very early demonstrates our push for excellence and with a strong emphasis on our digital play, we are set to amass more successes in the coming months.

    “We were impressed by the vote of confidence given by our shareholders during the 1st Rights Issue exercise as our shares were fully subscribed. In addition, we obtained the approval of shareholders at our 2023 Annual General Meeting (AGM) to raise an additional N150billion to meet the capitalisation threshold set by the CBN.

    “The process is expected to be completed within 12-18 months. We are committed to providing optimum returns for every stakeholder and the successful conclusion of this N40bn Rights Issue is a bold step in the right direction.”

    In addition to the upward trend in the Bank’s financial performance and the success recorded so far in its recapitalisation exercise, Wema Bank’s corporate rating was recently upgraded to BBB+ by Pan African credit rating agency, Agusto and Co, and retained at BBB by international rating agency, Fitch.

    Over the medium to long term, Wema Bank is positioned to not only dominate the digital Banking space but also the Nigerian financial services industry at large as it translates its industry leadership to significant market share.

    Wema Bank is a leading financial services entity with banking operations across Nigeria, its leadership position in the digital banking space speaks to its aspirations to liberate Nigerian businesses and entrepreneurs by making digital platforms widely available.