Wema Bank N50 Billion Listing, Effects on Valuation and ROE

Wema Bank Plc strengthened its capital base even more by listing 4.55 billion ordinary shares on the Nigerian Exchange Limited (NGX). This step followed a private placement worth N50 billion.

According to a notice from the Exchange, the newly listed shares—4,545,454,542 ordinary shares of 50 Kobo each—were listed on Tuesday, November 4, 2025, at N11.00 per share.

With this addition, the bank’s issued and fully paid-up share capital increased from 35.57 billion to 40.12 billion shares, boosting its capital adequacy ratio and capacity for future growth.

The listing positions Wema Bank among the top 25 most capitalized companies on the Nigerian Exchange, with a market capitalization of N756 billion, representing approximately 0.8% of the NGX equity market.

The fresh capital injection is expected to support the bank’s growth efforts, improve liquidity, and bolster its strategic investments in digital banking and retail expansion.

Wema Bank’s share price performance has demonstrated strong investor interest throughout 2025. The stock closed trading on Friday, November 7, 2025, at N18.85 per share, reflecting a 107% year-to-date increase from its opening price of N9.10 in January.

Despite this impressive rally, the stock experienced a mild pullback, losing about 6% over the past four weeks, with a 2.1% decline from N19.25 to N18.85 per share on Friday, November 7.

Market analysts attribute the correction to short-term profit-taking after months of sustained price growth.

Over the past three months (August 11 – November 7, 2025), Wema Bank ranked as the 22nd most actively traded stock on the NGX, with 659 million shares exchanged across 24,904 deals, valued at N12.6 billion.

The stock reached a trading high of 152 million shares on October 2 and a low of 572,900 shares on September 11, highlighting consistent market activity and investor engagement.

Q3 2025 Results Highlight Strong Fundamentals

The bank reported a robust 42% year-over-year growth in gross earnings, driven by increased interest income from loans, improved non-interest revenue, and the success of its digital banking platforms, including ALAT.

Pre-tax profit for the period surged to N35.7 billion, up from N25.1 billion during the same period in 2024.

The bank’s total assets also grew by 26% year-over-year to surpass N2.1 trillion, while customer deposits steadily increased, supported by an expanding retail base and innovative digital offerings.

Analysts consider the private placement timely, providing Wema Bank with the capital buffer needed to sustain its growth trajectory, improve risk-weighted asset coverage, and position the bank competitively ahead of the anticipated recapitalization drive in the Nigerian banking sector.

Market Outlook

With its strengthened capital base, digital leadership, and rising profitability, Wema Bank is increasingly regarded as one of Nigeria’s fastest-growing mid-tier lenders.

The additional N50 billion from the private placement will offer financial flexibility to fund new lending opportunities, enhance its technological infrastructure, and expand into new customer segments.

While short-term share price volatility may continue, market watchers remain optimistic about the bank’s medium- to long-term prospects, citing its strong fundamentals, operational efficiency, and clear growth strategy.