By Ayomide Otitoju
Wema Bank has reported an increase in its foreign exchange revaluation income, rising to N14.53 billion at the end of 2024 from N13.60 billion in 2023, marking a 6.78 per cent growth. This was disclosed in the bank’s unaudited financial statement for the fourth quarter of 2024, filed with the Nigerian Exchange Limited on Thursday.
Forex revaluation gains occur when a bank’s foreign currency-denominated assets and liabilities appreciate due to exchange rate fluctuations. The increase follows the harmonisation of currency market segments in June 2023, after which the National Assembly approved a 70 per cent windfall tax on banks benefiting from FX gains.
For the fourth quarter alone, Wema Bank recorded N325.16 million in FX revaluation income. Additionally, under fees and commissions, the bank’s income from FX transactions soared from N4.15 billion in 2023 to N15.04 trillion in 2024, representing a 262.66 per cent year-on-year increase.
Wema Bank nearly doubled its revenue in 2024, reaching N430.26 billion from N226.91 billion in the previous year. This achievement was driven by a significant rise in interest income to N351.83 billion from N185.64 billion, alongside a surge in net fee and commission income to N55.62 billion from N24.96 billion.
At the close of the 2024 financial year, Wema Bank posted a profit of N88.83 billion, a 146.84 per cent increase from N35.99 billion in 2023.
Meanwhile, the bank has unveiled plans to raise an additional N200 billion in the final tranche of its recapitalisation exercise. The additional funds will be sourced through a combination of rights issues and private placements, set to commence on April 1, 2025.
Ahead of the Central Bank of Nigeria’s new capital base announcement, Wema Bank launched a N40 billion rights issue in December 2023, securing approvals from the CBN and the Securities and Exchange Commission in 2024.
Wema Bank’s Managing Director and Chief Executive Officer, Moruf Oseni, expressed confidence in the success of the capital raise initiative.
“We stand strong today not just as Nigeria’s oldest indigenous bank but also as the country’s leading innovative bank. Wema Bank turns 80 this year, and we have never been more driven to excel. I am fortunate to lead a team of determined professionals committed to achieving our strategic aspirations. We are building Wema Bank into a formidable force in the African financial services landscape,” Oseni said.
He reaffirmed the bank’s commitment to transparency throughout the process and pledged regular updates to stakeholders.
“This capital raise will be a win-win for all. You can trust that your investment in Wema Bank will yield exceptional returns. This is our promise to you,” he added.
