Wema at 80: Legacy of Stability, Growth,  Long-term Returns for Shareholders

At 80, Wema Bank represents stability, capability, and sustained value for shareholders, writes Kayode Tokede

Wema Bank recently marked a defining moment in Nigeria’s financial services industry with the celebration of its 80th anniversary, an achievement attained by very few institutions in the country’s banking history. Wema at 80 represents more than longevity; it reflects eight decades of continuous operation, resilience through economic cycles, and the ability to remain relevant in an industry shaped by constant change. For shareholders and investors, this milestone underscores the strength of an institution that has not only survived regulatory reforms, market disruptions, and economic volatility, but has consistently created value while positioning itself for future growth. The celebration of Wema Bank’s 80th anniversary therefore stands as a clear affirmation of stability, foresight, and sustained returns for those who have entrusted their capital to the Bank over the years.

For shareholders, Wema Bank’s journey over the past eight decades illustrates how long-term strategic consistency translates into enduring value. Founded in 1945 at a time when indigenous banking was limited, the Bank steadily built a reputation for reliability, adaptability, and customer trust. This foundation enabled Wema Bank to navigate multiple economic reforms, policy changes, and industry disruptions while preserving shareholder interests. Over time, the Bank evolved from focusing on survival and continuity to driving profitability, scale, and market relevance. Today, this progression is evident in its expanding balance sheet, growing earnings base, and strengthened capital position, outcomes that directly reflect management’s commitment to safeguarding and enhancing shareholder value.

The past few years in particular have crystallized this transformation. The Central Bank of Nigeria’s recapitalization directive introduced one of the most defining tests the banking sector has witnessed in recent years. While many institutions sought mergers, acquisitions, or extensive public offers to meet their capital requirements, Wema Bank chose a path that reflected not only corporate confidence but also investor trust. The Bank turned to its existing shareholders in a Rights Issue exercise that was as bold as it was strategic. This decision came on the shoulders of a forward-thinking action taken months before the directive was announced. Wema Bank had executed a N40 billion Rights Issue in 2023, which secured approvals from both the Central Bank of Nigeria and the Securities and Exchange Commission in 2024. With N27 billion already raised, the Bank strengthened its capital base early, elevating it to N67 billion and establishing momentum long before the industry-wide scramble for capital began.

The rights issue was followed by a year of exceptional financial performance. In 2024, Wema Bank delivered its strongest earnings in history, reporting Gross Earnings of N432.34 billion, a growth of 91.51 percent from N225.75 billion the previous year. Profit Before Tax rose by 135.16 percent to N102.51 billion from N43.59 billion in 2023, while Profit After Tax surged by 140.13 percent to N86.29 billion from N35.93 billion. Total Deposits climbed to N2,523.82 billion, up 35.65 percent from N1,860.57 billion in 2023. Total Assets rose remarkably by 60.04 percent, reaching N3,585.05 billion compared to N2,240.06 billion the previous year. The Bank’s Non Performing Loan ratio improved to 3.86 percent, further affirming the robustness of its risk management structures. Its earnings per share stood at 483.2 kobo, giving shareholders a clear indication of the Bank’s upward trajectory and profit-generating capacity.

Amid these remarkable results, Wema Bank opened the second tranche of its recapitalization plan in April 2025, a N150 billion Rights Issue that closed in May 2025. The response was resounding, with shareholders oversubscribing. The Bank complemented this exercise with a planned N50 billion Private Placement. With the Rights Issue now approved by regulators and total qualifying capital standing at N217 billion, Wema Bank surpassed the N200 billion capital requirement for national banks more than six months ahead of the March 2026 deadline. For investors, this early compliance holds deep significance. It signals financial strength, disciplined planning, regulatory foresight, and the ability to mobilize capital through a shareholder base that firmly believes in the institution’s long-term potential. It is rare for a financial institution to depend solely on its existing investors to meet such a substantial capital requirement, and even rarer for those investors to respond with emphatic support. It is a demonstration of confidence that can only be earned through years of consistent performance and trust building.

Investor confidence has also been reinforced by market performance. Wema Bank’s stock has become one of the strongest performing equities on the Nigerian Exchange. According to Nairametrics, the Bank’s shares appreciated by 139.56 percent year to date as of September 12, 2025, surpassing both the NGX All Share Index and the NGX Banking Index. This rally follows a 171 percent growth in 2024 and a 47 percent appreciation in 2023, solidifying Wema Bank’s position as a standout performer for value-seeking investors.

This market confidence was further reinforced recently by Wema Bank’s inclusion and ranking on the Nigeria Megacorp Index 100, where it secured the 31st position among the country’s highest earning corporations. Compiled by Nairametrics, the NMX 100 recognises companies generating over N100 billion in annual revenue, based strictly on audited financial statements across sectors such as banking, telecommunications, oil and gas, FMCG, and manufacturing. Wema Bank’s placement on this index reflects its expanding scale, growing earnings capacity, and strengthening market position within Nigeria’s corporate landscape. For shareholders, this recent recognition provides independent validation of the Bank’s financial strength, disciplined execution, and sustained performance, reinforcing its status as a stable investment with long-term value creation potential.

Global and continental rating agencies have echoed this sentiment. Agusto and Co upgraded Wema Bank’s credit rating from BBB plus to A and revised its outlook from stable to positive, citing improved profitability, strong liquidity, and enhanced operational efficiency. Fitch Ratings upgraded the Bank’s National Long-Term Rating to A (nga) from BBB (nga) and affirmed its Long-Term Issuer Default Rating at B minus, reflecting the strength of the Bank’s fundamentals. GCR Ratings upgraded Wema Bank’s national scale long-term and short-term issuer ratings to BBB plus (NG) and A2 (NG), respectively, with a stable outlook. These upgrades, particularly coming from institutions that benchmark performance against global standards, are independent confirmations of stability, creditworthiness, and upward momentum.

Beyond these financial achievements and regulatory milestones, Wema Bank’s growth trajectory is increasingly anchored by ALAT by Wema, Africa’s first fully digital bank, launched in 2019 as a strategic response to evolving customer expectations and digital disruption. ALAT by Wema serves as the foundation of the Bank’s product ecosystem, delivering seamless digital banking while driving customer acquisition, engagement, and transaction volumes at scale. Built to integrate banking with everyday financial and lifestyle needs, ALAT by Wema has evolved beyond basic account services to support savings, investments, payments, credit, and digital commerce. This platform has since enabled the expansion of complementary solutions including ALAT by Business for SMEs, ALATPay for merchant collections, CoopHub for cooperative finance, and ALATXplore for youth banking. Together, these offerings strengthen Wema Bank’s digital leadership, expand its addressable market, and reinforce a long-term strategy focused on sustainable earnings growth, customer lifetime value, and shareholder returns.

For investors, this blend of heritage and modernity is a compelling value proposition. It means the institution has mastered both endurance and evolution. It also means that the Bank understands the future of banking as a fusion of physical reach, digital depth, customer insight, and technological agility.

Within this context, Wema Bank at 80 is not just a celebration of years served but a reflection of strategic evolution. The Bank’s ability to continuously innovate, integrate, and expand its suite of products speaks to its commitment to leading Nigeria’s financial services industry into the future. For investors, this means aligning with a bank that has consistently anticipated market needs, embraced digital transformation early, and translated innovation into measurable financial outcomes.

The significance of Wema Bank at 80 for investors therefore lies in this convergence of history, performance, capital strength, product innovation, and market validation. The Bank has proven its ability not only to generate strong earnings but also to sustain growth across periods of volatility. It has demonstrated an unmatched ability to exceed targets, as evident in its 2023 Profit Before Tax outcome which surpassed projections by more than 45 percent and its 2024 performance, which exceeded the N100 billion PBT target set for that year. Its capital raise success, coming solely from its shareholders, has reaffirmed the Bank’s place as one of the most trusted franchises in the Nigerian financial ecosystem. Its ratings upgrades have strengthened market visibility and investor credibility. Its stock performance has confirmed that the market understands the significance of its upward trajectory.

As Wema Bank advances further into its ninth decade, the evidence points toward an institution equipped for long-term transformation. The Bank continues to invest in technology, expand its customer base, deepen its digital offerings, and reinforce its organisational structure for greater efficiency. The planned N50 billion private placement, once approved, positions the Bank closer to the halfway mark of the capital threshold for internationally authorised banks, raising important questions about the Bank’s future competitive positioning. For investors, this presents the possibility of participating in a financial institution on the brink of an even more significant evolution.

At 80, Wema Bank represents stability, capability, and sustained value. It represents an institution that has outlived economic cycles, surpassed expectations, and consistently strengthened its foundation. It represents a franchise that understands what it means to survive, what it means to succeed, and what it means to scale. For shareholders and investors, the significance of Wema Bank at 80 lies in the assurance that they are part of a story still unfolding, a story defined not only by where the Bank has come from but by the limitless potential of where it is headed. The Bank’s leadership has affirmed that the growth witnessed today is merely the beginning, a glimpse of possibilities yet to be realised. For investors seeking long-term returns anchored in resilience and guided by innovation, Wema Bank at 80 stands as one of the strongest signals of confidence available in the Nigerian financial markets today.