Business
Wema Bank’s Remarkable 196% Profit Before Tax Surge in 2023
Wema Bank’s Remarkable 196% Profit Before Tax Surge in 2023
Wema Bank Plc, a prominent financial institution in Nigeria, recently unveiled its audited financial statement for the fiscal year 2023, showcasing a remarkable 196% surge in profit before tax, soaring from ₦14.75 billion to an impressive ₦43.59 billion. This significant growth underscores the bank’s robust performance and strategic financial management in a dynamic and competitive market landscape.
The announcement also included a notable increase in dividend per share, rising to 50 kobo from 30 kobo in the previous year, reflecting the bank’s commitment to delivering value to its shareholders. Furthermore, Wema Bank reported a substantial 60% growth in deposits, reaching ₦1,860.57 billion compared to ₦1,165.93 billion in the preceding fiscal year.
Key financial indicators such as Return on Equity (ROAE) of 39.28%, Non-Performing Loans (NPL) at 4.31%, and the anticipation of the N40 billion 1st tranche of capital raise pending regulatory approvals underscore the bank’s strong financial position and prudent risk management practices.
In a statement addressing the financial results, Mr. Moruf Oseni, the Managing Director and Chief Executive Officer of Wema Bank, expressed his satisfaction with the bank’s performance in 2023. He highlighted the substantial improvements across various metrics, attributing the impressive profit before tax growth to the revitalized operational strategies implemented by the bank.
The notable increase in Gross Earnings by 72%, Total Assets by 56%, and earnings per share at 279.5 kobo underscores the bank’s commitment to enhancing its balance sheet strength and driving sustainable growth. Moreover, the significant improvement in the cost-to-income ratio, now standing at 64.37%, reflects the bank’s focus on operational efficiency and cost optimization.
Mr. Oseni also emphasized the successful completion of the N40 billion capital raise exercise, positioning Wema Bank to meet the new capital licensing requirements set forth by the Central Bank of Nigeria. This strategic move underscores the bank’s proactive approach to capital management and its commitment to fortifying its financial foundations for future growth and expansion.
Looking ahead, Wema Bank remains steadfast in its ambition to ascend to the ranks of a Top-Tier Bank in the industry, underpinned by a robust digital infrastructure and a customer-centric approach. The bank’s flagship digital platform, ALAT, has carved a niche for itself in the retail banking space, and Wema Bank is now poised to evolve into an intelligent platform offering a comprehensive suite of financial services.
In alignment with its growth strategy, Wema Bank has forged strategic partnerships with the Federal Government to empower MSMEs, engage with NYSC members, and drive initiatives in key sectors such as healthcare, education, women empowerment, and sustainable development. These collaborations underscore the bank’s commitment to driving social impact and fostering economic growth across diverse sectors.
As Wema Bank charts its course for the future, the focus remains on leveraging technology to enhance customer experience, drive innovation, and address evolving market needs. The bank is poised to introduce cutting-edge platforms and initiatives that prioritize customer-centricity and foster financial inclusion, setting the stage for sustained growth and success in the dynamic Nigerian banking landscape.
In conclusion, Wema Bank’s stellar financial performance in 2023 underscores its resilience, strategic foresight, and commitment to delivering value to stakeholders. As the bank continues to grow, guided by a vision of digital excellence and customer empowerment, it is poised to transform the banking landscape and emerge as a dominant force in Nigeria’s financial sector.
