By Taiye Olayemi

Credit rating agencies, Fitch and GCR, have upgraded the ratings of Wema Bank, further underscoring its capacity for long-term sustainability within the African banking ecosystem.

According to a statement by the bank on Thursday, these ratings raise the projection on Wema Bank’s outlook from stable to positive.

Fitch, an American rating agency, upgraded the bank’s National Long-Term Rating to ‘A-(nga)’ from ‘BBB(nga)’, while affirming its Long-Term Issuer Default Rating (IDR) at ‘B-‘.

African rating agency, GCR, also upgraded Wema Bank’s National scale long and short-term issuer rating to BBB+(NG)/A2(NG) from BBB(NG)/A3(NG), with a stable outlook

Commending Fitch and GCR for the objective assessment and projection of the bank’s future, its Chief Executive Officer, Mr Moruf Oseni, reiterated Wema Bank’s promise to its customers and shareholders.

Oseni asserted that Wema Bank’s journey has just begun at 80, saying, “Wema Bank is more than just a provider of financial services. This great institution represents a bold and firm statement to the world, ‘Nigerian-owned can stand the test of time’.

“Wema Bank was founded on the precipice of catering to the needs of Nigerians when no one else would. 80 years later, that legacy lives on and we are more fueled than ever to keep that timeless legacy thriving.”

Oseni said that Wema Bank had navigated every challenge and consistently developed solutions that accelerate progress across various industries beyond banking.

“Today, Wema Bank stands stronger than ever at 80 years. This is what happens when you devote your ‘all’ to self-improvement and delivering value to the people you serve.

“80 years seems like a lot and it is, but it is nothing compared to what lies ahead. These upgrades are very significant and represent good news for us as a bank.

“It stands as a strong testimony to the great work we have all put in in the last one year,” he added.

Oseni noted that Wema Bank had built a legacy of impact, resilience, empowerment, innovation, dominance, transformation and excellence since 1945.

He said that the bank had also pioneered a paradigm shift in banking, connecting banking with lifestyle and leveraging innovation.

According to him, the bank has introduced a new era of impactful banking where customers’ needs are proactively met with practical solutions tailored to every stage of their lives.

“Beyond being Nigeria’s longest surviving indigenous bank, Wema Bank’s intentional approach to banking has arguably earned it the title of Nigeria’s most innovative bank, a legacy that continues to reflect in the bank’s numbers.

“From a steady increase in customer volume to diversity in customer-base, strategic variety in range of solutions to increased shareholder confidence and upturns across several financial metrics, Wema Bank has proven to be the bank that has not just built a legacy of 80 years of impact.

“It is significantly, the indigenous financial institution with a future of limitless possibilities; one that will outlive expectations, transcend time and prove in the centuries to come, that Nigerian businesses can last.

“It comes as no surprise that credible ratings agencies, Fitch and GCR, have upgraded the bank’s ratings and affirmed a positive and stable outlook for the bank.

“Wema Bank will continue to exceed all expectations, support the people on all levels and never relent in its promise to keep delivering optimum value to every stakeholder,” he said.

in 2024, Pan-African Rating Agency, Agusto & Co, upgraded Wema Bank’s ratings to Bbb+ with ESG Score of 2 and confirmation of stable outlook, citing improved profitability despite macroeconomic headwinds, a lower impaired loan ratio, a better deposit mix, and strong shareholders’ support.

Also in same year, GCR upgraded Wema Bank Plc’s national scale long-term issuer ratings to BBB(NG) from BBB-(NG) and affirm the short-term issuer rating of A3(NG), with the Outlook revised to Stable; while Fitch Affirmed the Bank at ‘B-‘ with Outlook, Stable. (NAN) (www.nannews.ng)

Edited by Olawunmi Ashafa

By Taiye Olayemi

Wema Bank has recorded a profit before tax of N102.51 billion in 2024 financial year, representing an increase of 135 per cent when compared to the N43.59 billion recorded in 2023.

The bank has proposed a dividend of N1.00 per share following its strong financial performance in 2024.

In a statement by the bank on Sunday, its balance sheet remains structured, diversified, and resilient, with total assets growing by 60 per cent to N3.585 billion in 2024.

Total assets had stood at N2.240 billion in 2023. The bank also grew its deposit base year-on-year by 36 per cent to N2.523 billion from N1.860 billion.

Loans and advances increased by 50 per cent, reaching N1.201 billion in 2024 from N801.10 billion in 2023. Non-performing loans stood at 3.86 per cent at year-end.

The bank recorded improved year-on-year performance, with gross earnings growing by 92 per cent to N432.34 billion, compared to N225.75 billion in 2023.

Interest income rose by 92 per cent year-on-year to N353.54 billion from N184.48 billion, while non-interest income increased by 91 per cent to N78.80 billion.

The bank reported a Return on Equity of 43.60 per cent, a Return on Assets of 2.96 per cent, and a Capital Adequacy Ratio of 19.67 per cent.

Its Cost-to-Income ratio stood at 56.23 per cent, highlighting the commercial bank’s resilience and financial strength.

Managing Director Moruf Oseni attributed the strong 2024 performance to strategic execution in risk management, customer relationships, and digital banking.

“Our people remain committed to supporting Nigerian businesses and individuals with innovative banking products and services,” he said.

He highlighted ALAT, the bank’s flagship digital platform, as a leader in digital banking adoption among Nigeria’s young population.

“One example is ALAT XPlore, Nigeria’s first licensed banking app for teenagers aged 13 to 17, designed to build financial skills and responsibility,” Oseni said.

In spite of a challenging operating environment, the bank continues to grow across all financial indices, demonstrating the workforce’s resilience and expertise.

“The standout performance is Profit Before Tax, which surged by 135 per cent,” he added.

Oseni noted that the 92 per cent rise in gross earnings, 60 per cent growth in total assets, and 483.20 kobo earnings per share strengthened the balance sheet.

“Our Cost-to-Income ratio of 56.23 per cent has significantly improved from the previous period,” he stated.

He also announced that the bank’s Capital Raise Programme would begin in April 2025 with a N150 billion rights issue. (NAN) (www.nannews.ng)

Edited by Kamal Oropo