Wema Bank Plc has reported a significant increase in its income from foreign exchange (FX) revaluation, marking a substantial rise from N13.60 billion in 2023 to N14.53 billion in 2024, reflecting a 6.78 per cent growt.
This disclosure was made in the bank’s unaudited financial statement for the fourth quarter of 2024, filed with the Nigerian Exchange Limited on Thursday.
FX revaluation gains occur when there is an appreciation in the value of a bank’s assets and liabilities denominated in foreign currencies due to fluctuations in exchange rates.
According to the financial results, Wema Bank recorded N325.16 million in FX revaluation income for the fourth quarter of 2024 alone.
Additionally, the bank experienced a remarkable surge in income from FX transactions under fees and commissions, soaring from N4.15 billion in 2023 to N15.04 trillion by the end of 2024, marking a substantial 262.66 per cent increase over the fiscal year.
The bank’s total revenue for 2024 nearly doubled, reaching N430.26 billion compared to N226.91 billion in the previous year.
This growth was underpinned by a rise in interest income to N351.83 billion from N185.64 billion and a notable increase in net fee and commission income, which climbed to N55.62 billion from N24.96 billion.
Furthermore, Wema Bank reported a robust 146.84 per cent growth in profit after tax, reaching N88.83 billion in 2024, up from N35.99 billion in 2023.
In anticipation of the Central Bank of Nigeria’s new capital requirements, Wema Bank has unveiled plans to raise an additional N200 billion in the final phase of its recapitalization exercise.
This initiative will be executed through a combination of rights issues and private placement, set to commence on April 1, 2025.
Speaking on the upcoming capital raise, Wema Bank’s Managing Director/Chief Executive Officer, Moruf Oseni, expressed confidence in the success of the programme.
He reassured shareholders and stakeholders of the bank’s commitment to transparency throughout the process, promising regular updates on progress.
“We stand strong today not just as Nigeria’s oldest indigenous bank but also as Nigeria’s leading innovative bank,” Oseni remarked. “Wema Bank turns 80 this year, and I can safely tell you that we have never been more driven to excel.”
He continued, “I am blessed to lead with the support of a team of determined and driven professionals who will leave no stone unturned in achieving our strategic aspirations.
“Indeed, we are building Wema Bank into a formidable force in the African financial services landscape.”
Oseni concluded by emphasizing the bank’s commitment to delivering substantial returns on investments, stating, “This capital raise will be a win-win for us all. You can trust, as always, that your investment in Wema Bank will produce exceeding returns. This is our promise to you.”
Wema Bank had previously launched a N40 billion rights issue in December 2023, receiving approvals from both the Central Bank of Nigeria and the Securities and Exchange Commission in 2024.
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