…Proposes ₦1.25 Dividend Payout
Wema Bank Plc, Nigeria’s pioneer digital bank, has delivered a breakout financial performance for the 2025 fiscal year.
The mid-tier lender recorded a massive 125% surge in Profit After Tax (PAT), hitting ₦194.4 billion, up from ₦86.27 billion in 2024.
This explosive growth—driven by a doubling of Net Interest Income—has prompted the Board to propose a dividend of ₦1.25 per share, a move that signals Wema’s successful transition into a high-yield contender following the CBN’s ₦4.65 trillion recapitalization window.
Gross Earnings grew by 52.79% from ₦432.34 billion in FY 2024 to ₦660.59 billion in FY 2025.
The Wema and ALAT brands continue to enjoy strong public acceptance and increasing market relevance, supporting the Bank’s earnings growth of 52.79% year-on-year.
Financial Performance: The Interest Income Engine
Wema Bank effectively leveraged the high-interest-rate environment (26.5% MPR) to supercharge its core lending business. Unlike some peers retreating into securities, Wema’s loan book grew by 44.6%.
| Metric | FY 2024 (Actual) | FY 2025 (Actual) | % Change |
| Profit After Tax (PAT) | ₦86.27 Billion | ₦194.4 Billion | +125.3% |
| Net Interest Income | ₦177.0 Billion | ₦360.98 Billion | +103.9% |
| Total Assets | ₦3.59 Trillion | ₦5.07 Trillion | +41.2% |
| Loans & Advances | ₦1.20 Trillion | ₦1.73 Trillion | +44.6% |
| Proposed Dividend | 100 Kobo (Approx) | 125 Kobo (₦1.25) | +25% |
Source: Wema Bank
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Asset Quality: Despite the aggressive lending, Net Impairment Loss rose only marginally to ₦25.68 billion, suggesting a disciplined approach to credit risk even as the economy faces “war-inflation” pressures.
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Operating Costs: The bank faced significant “cost-of-living” adjustments, with Personnel Expenses jumping 54% to ₦70.18 billion, reflecting the competitive talent war in the Nigerian fintech and banking space.
Dividend Alpha: The 125 Kobo Payout
The ₦1.25 dividend is a landmark for Wema Bank shareholders, representing a total payout of ₦50.14 billion.
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Source of Payout: In strict compliance with CBN guidelines, the dividend is funded exclusively from 2025 audited profits, leaving accumulated reserves intact to support future capital buffers.
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Yield Potential: With 40.1 billion shares in issue, this payout solidifies Wema’s status as a top-tier “Mid-Cap” dividend play.
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Recapitalization Strength: The Board confirmed that this ₦50bn payout will not adversely impact the bank’s Capital Adequacy Ratio (CAR), which has been bolstered by the recent 24-month recapitalization exercise. Wema Bank successfully completed its ₦200 billion capital raise during the year, in full alignment with the CBN’s recapitalization directive and shareholder approvals: This comprised: ₦150 billion Rights Issue, and ₦50 billion Private Placement.
The “ALAT” Edge: Fee and Commission Growth
Wema’s digital-first strategy through its ALAT platform continues to pay off.
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Non-Funded Income: Net fee and commission income rose 36% to ₦75.54 billion, driven by digital transaction volumes and agency banking expansion.
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Digital Growth: The development and deployment of the ALAT Xplore app (An app for teenagers). ALAT Pay strengthened Wema’s payments capabilities, enabling faster, more convenient, and secure transactions. ALAT 2.0, the upgraded version of its flagship digital platform, was successfully launched, offering enhanced functionality, scalability, and user experience.
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