Wema Bank MD hints expansion to tier-one status at AGM

Wema Bank’s Managing Director, Mr. Moruf Oseni, has reaffirmed the bank’s ambition to break into Nigeria’s tier-one banking league “in the not-too-distant future.”

Addressing shareholders during the lender’s annual general meeting (AGM) in Lagos, Moruf his management team and staff are working hard to “deliberately and intentionally position” Wema among Nigeria’s top-tier banks, with profitability tripling over three years.

He cited the sharp profitability trajectory and fresh capital recently raised as the foundation for an accelerated growth push.

The MD disclosed that the bank’s profit surged from N42 billion to N102.51 billion and further to N221.9 billion in the 2025 financial year, representing a near fivefold increase over the three-year period.

What the MD is saying:

Presenting the numbers to shareholders, the MD framed the profit trajectory as evidence of deliberate institutional building:

“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.”
On dividends, the MD struck a cautious but reassuring tone, noting that while the bank remains committed to consistent dividend payments — a sharp turnaround from years of no dividend distribution — management is deliberately conserving capital for future opportunities:
“We’re keeping our gunpowder dry… 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 reference to future “opportunities” and the need for “enough firepower” strongly suggests the bank is eyeing acquisitions or strategic transactions, though no specifics were disclosed.
The MD noted that details would be revealed “in the fullness of time.”

The MD gave the credit for the bank’s performance to his subordinates and staff, describing them as the “Knights of Wema Bank” who “toil 24-7” to deliver results. He also acknowledged shareholders, board members, and customers as central to the bank’s recovery story.

More insights:

The MD outlined a clear capital allocation strategy for the fresh funds raised, covering three priority areas:

Loan growth: The raised capital will be channelled into creating quality risk assets
Digital expansion: Investment in what the MD described as “platforms of engagement” — customer-facing digital infrastructure
Cybersecurity: Spending on “platforms of defence” to protect the bank and customer deposits amid rising cybercrime threats
The Wema Bank boss also hinted on plans to deepen its national footprint, emphasizing a “follow the money” strategy — placing branches specifically in commercially viable locations rather than blanket geographic expansion.
Earlier in her address, the Board Chairman, Mrs. Oluwayemisi Olorunshola, reminded shareholders that the year 2025 marked the bank’s 80th anniversary as Nigeria’s oldest surviving indigenous bank.

According to her, the milestone provided opportunity to reaffirm their commitment to building a future-ready institution that continues to deliver value to shareholders, customers, employees, and the entire Nigerian economy.

Get up to speed:

In its audited financial result for the full year ended December 31, 2025, Wema Bank Plc reported a profit before tax of N221.8 billion, representing a 116.44% increase from N102.5 billion in 2024, mainly driven by growth in interest income, which forms the bulk of its top line.

Interest income rose to N576 billion from N354.6 billion, with loans and advances contributing 60.4%, investment securities 35.5%, and cash and cash equivalents making up the remainder.
Along with income from its non-interest activities, especially fees and commissions, the bottom line strengthened, with earnings per share rising to N7.12 from N4.83.
The interest income of N576.07 billion was largely driven by earnings from loans and advances of N348.2 billion, investment securities of N204.4 billion, and cash and cash equivalents of N23.3 billion.
Operating expenses increased to N198.7 billion, leaving a pre-tax profit of N221.8 billion, up 116.44%.
After an impairment of N25.6 billion, net interest income after impairment settled at N335.2 billion, up from N155.4 billion in the previous year.
After N27.4 billion in tax, the post-tax profit settled at N194.4 billion.
The bank also earned N8.3 billion from trading income and N392.5 million from other sources, bringing total operating income to N420.6 billion, up from N234.2 billion the previous year.

On the balance sheet, total assets jumped to N5.07 trillion from N3.5 trillion, with loans and advances to customers at N1.7 trillion, forming the largest portion of the asset base.

What you should know:

Wema Bank’s N221.9 billion profit figure, while impressive on a growth curve, still places it well behind Nigeria’s tier-one lenders.

Zenith Bank, for instance, posted profits of N1.04 trillion in its full-year 2025 results, while GTCO recorded N865 billion.
Access Holdings and UBA reported numbers were above Wema’s current level.
Bridging that gap will require sustained high-double-digit or triple-digit profit growth over several consecutive years or an inorganic leap through a major acquisition, which the MD’s comments appear to hint at.

Shareholders unanimously approved all the proposals laid before them including the dividend of N1.25 per share, the appointment of Engr. Wilson Agu as Independent Non‑Executive Director.

They also re-elected three retiring directors, and elected members of the statutory audit committee.