Wema Bank eyes tier-one banking league

The Managing Director of Wema Bank, Mr. Moruf Oseni, has reaffirmed the lender’s ambition to join Nigeria’s tier-one banking league in the “not-too-distant future,” as the bank posted record earnings and hinted at possible future acquisitions. Speaking at the bank’s Annual General Meeting (AGM) in Lagos, Oseni said the management team was deliberately positioning the […]

The Managing Director of Wema Bank, Mr. Moruf Oseni, has reaffirmed the lender’s ambition to join Nigeria’s tier-one banking league in the “not-too-distant future,” as the bank posted record earnings and hinted at possible future acquisitions.

Speaking at the bank’s Annual General Meeting (AGM) in Lagos, Oseni said the management team was deliberately positioning the 80-year-old financial institution for accelerated growth, supported by rising profitability and fresh capital injections.

According to him, Wema Bank’s profit trajectory over the last three years demonstrates a carefully executed strategy aimed at transforming the lender into one of Nigeria’s top financial institutions.

“If you observe that trend, it’s on an increase, and it’s a testament to all the work we’ve done since we took over, and even in the years when we were building the blocks,” he told shareholders.

The bank’s profit rose from N42 billion three years ago to N102.51 billion and further to N221.9 billion in the 2025 financial year, representing nearly a fivefold increase within the period.

Oseni said the bank remained committed to paying dividends consistently while also preserving capital for strategic opportunities that may arise in the future.

“We’re keeping our gunpowder dry,” he said, adding, “We felt that at this point in time the dividend paid was appropriate, taking into cognisance that there may be opportunities in the future that we will want to take advantage of.”

The comment has fuelled speculation that the bank may be considering acquisitions or strategic transactions as part of its growth ambitions, although the managing director declined to provide details, saying more information would emerge “in the fullness of time.”

He attributed the bank’s strong performance to its employees, whom he described as the “Knights of Wema Bank,” for their commitment and dedication.

Oseni also outlined three priority areas for deploying the bank’s newly raised capital. According to him, the funds will be channelled toward expanding quality loan assets, strengthening digital banking infrastructure, and improving cybersecurity systems to protect customers and the institution against rising cyber threats.

The Wema Bank boss further disclosed plans to deepen the bank’s national footprint through a “follow the money” strategy, focusing branch expansion on commercially viable locations rather than broad geographical spread.

Earlier in her remarks, the Chairman of the Board, Mrs. Oluwayemisi Olorunshola, noted that 2025 marked the bank’s 80th anniversary as Nigeria’s oldest surviving indigenous bank.

According to her, the milestone offered an opportunity to reaffirm the institution’s commitment to building a future-ready bank that continues to create value for shareholders, customers, employees, and the Nigerian economy.

In its audited financial results for the year ended December 31, 2025, Wema Bank reported a profit before tax of N221.8 billion, representing a 116.44 per cent increase from N102.5 billion recorded in 2024.

The growth was driven largely by interest income, which rose to N576 billion from N354.6 billion. Loans and advances contributed 60.4 per cent of the interest income, while investment securities accounted for 35.5 per cent.

Net interest income after impairment rose to N335.2 billion from N155.4 billion, despite impairment charges of N25.6 billion. After tax of N27.4 billion, post-tax profit stood at N194.4 billion.

The bank also recorded N8.3 billion in trading income, helping total operating income rise to N420.6 billion from N234.2 billion in the previous year.

On the balance sheet, total assets climbed to N5.07 trillion from N3.5 trillion, while loans and advances to customers stood at N1.7 trillion.

Despite the impressive growth, Wema Bank still trails Nigeria’s leading lenders. Zenith Bank posted profits of N1.04 trillion in 2025, while Guaranty Trust Holding Company recorded N865 billion. Access Holdings and United Bank for Africa also reported significantly higher earnings.

Analysts say closing the gap will require sustained rapid growth or a major acquisition, a possibility hinted at by management during the AGM.

Shareholders unanimously approved all resolutions presented at the meeting, including a dividend of N1.25 per share, the appointment of Engr. Wilson Agu as Independent Non-Executive Director, the re-election of retiring directors, and the election of members of the statutory audit committee.