… Reports Profit Before Tax of ₦60.62billion, a 174% YonY Growth

Wema Bank Nigeria (“Wema” or “the Bank”)) has released its unaudited Consolidated Financial Statements for the period ended September 30th 2024, to the Nigeria Exchange Group (NGX). The Bank reported profit before tax of ₦60.62bn, representing an increase of 174% over the ₦22.13bn recorded in the corresponding period in 2023.

Wema Bank’s balance sheet remained well structured with total assets growing by 38% to ₦3,084.27 trillion in Q3 2024 from ₦2,240.06trillion in FY 2023. The bank also grew its deposit base year to date by 23% to ₦2,292.30bn from ₦1,860.57bn reported in FY 2023. Loans and Advances grew by 25% to ₦1003.28bn in Q3 2024 from ₦801.10bn in FY, 2023. NPL stood at 3.19% as at Q3 2024.

The bank recorded an improved 3rd quarter performance as Gross Earnings grew by 91% to ₦288.32bn (Q3 2023: ₦150.90bn)). Interest Income was up 81% y/y to ₦229.11bn (Q3 2023: ₦126.67bn). Non-Interest Income up 144% y/y to ₦59.21bn (Q3 2023: ₦24.23bn).

Return on Equity (ROAE) of 38.62%, Pre-Tax Return on Assets (ROAA) of 2.64%, Capital Adequacy Ratio (CAR) of 14.06% and Cost to Income ratio of 60.47%, speak to the resilience of the brand.

The Managing Director/Chief Executive Officer of the bank, Mr. Moruf Oseni said, ‘our Q3 2024 numbers speaks to our resilience despite a tough operating environment. We will sustain our growth trajectory into 2025. The performance is headlined by impressive improvements in Profit before Tax which grew strongly by 174%. The growth of Gross Earnings by 91.07%, Total Assets by 38% and earnings per share at 328.1kobo shows the core improvements to our balance sheet. In addition, our cost to income ratio at 60.48% has witnessed significant improvement from the previous period.

• Project to make Grenada to become a major energy hub

Oceangate Oil and Gas Engineering, under the leadership of Group CEO, Dr. Aisha Sulaiman Achimugu, has secured a historic multi-billion dollar deal with Global Petroleum Group to launch one of the Caribbean’s largest oil and gas ventures.

This transformative partnership aims to develop Grenada’s significant hydrocarbon reserves, paving the way for the island nation to emerge as a major energy hub in the Caribbean and beyond.

With a vision to fuel long-term economic growth and sustainable development, this ambitious project promises not only to elevate Grenada’s energy production capabilities but also to foster job creation, infrastructure development, and technology transfer within the local economy.

Set against the backdrop of the Caribbean’s evolving energy landscape, the venture is expected to provide unprecedented economic opportunities, delivering benefits across sectors and positioning Grenada as a key energy supplier in the region.

“We are thrilled to enter this partnership with Global Petroleum Group, which will bring substantial economic benefits and energy resources to Grenada,” said Dr. Achimugu.

“This venture underscores Oceangate’s commitment to investing in sustainable energy solutions that drive economic prosperity while respecting environmental standards. We believe this project will lay the foundation for future economic collaborations between Africa and the Caribbean.”

The International Monetary Fund (IMF) has hailed the economic reforms implemented by President Bola Tinubu’s administration.

Abebe Selassie, director of the African department at the IMF, spoke during a press briefing in Washington DC., United States.

Selassie said the IMF has consistently advocated for Nigeria’s investment in areas like infrastructure, health, and education

He said the government has taken steps which represent a more effective use of public resources, aimed at unlocking the economy’s vast potential to become more dynamic, attract investments, and drive growth.

“We express our thoughts on what would be a better use of public resources and I think over the years, what Nigeria has been testing for is a lot of investment in infrastructure. A lot of investment that’s required in health, education and the like,” Selassie said.

“Those have been our strong views expressed in Nigeria as continued sustaining subsidies for fuel and other areas.

“At the end of the day, these are really deeply domestic and deeply political choices that governments have to make.

“They have made choices that we think move in the direction of better use of public resources, in a way that will unlock this incredible potential that the economy has to make it more dynamic, to invest, to facilitate growth and we welcome those reforms.”

The IMF director acknowledged that the reforms have come with significant costs, including internal adjustment expenses, noting that improving social protections, especially for the most vulnerable, would be beneficial.

Tinubu, during his inauguration on May 29 2023, declared that the petrol subsidy is gone — a development that immediately led to a hike in the cost of the commodity across the country and spiralling inflation across the board.

The next month, the Central Bank of Nigeria (CBN) announced the unification of all segments of foreign exchange (FX) markets.

In the face of the economic hardship caused by the policies, Tinubu has repeatedly called for patience from Nigerians, noting that the reforms introduced by his administration are beginning to show positive signs.