Cash and cash equivalents rose to ₦934.8 billion, more than tripling from ₦278.9 billion in the prior year, strengthening liquidity buffers.
Restricted deposits with the Central Bank of Nigeria increased to ₦918.0 billion, up from ₦838.6 billion, reflecting higher regulatory reserve requirements.
Loan Book and Investment Securities Expand Sharply
Loans and advances to customers grew to ₦1.75 trillion, up 45.3 percent from ₦1.20 trillion in 2024, indicating strong credit expansion across the bank’s lending portfolio.
Investment securities recorded substantial growth:
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Held-to-maturity securities rose to ₦1.13 trillion, from ₦840.0 billion
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Fair value through profit or loss (FVTPL) investments increased sharply to ₦196.6 billion, from ₦45.5 billion
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FVTOCI securities remained stable at ₦14.8 billion
The growth in investment assets highlights active balance-sheet deployment amid rising yields in the fixed-income market.
Funding Base Strengthens as Customer Deposits Rise
Customer deposits increased significantly to ₦3.28 trillion, representing a 30.1 percent growth from ₦2.52 trillion in 2024. Deposits from banks declined to zero from ₦258.5 billion, pointing to a deliberate shift away from interbank funding toward more stable retail and corporate deposits.
Other borrowed funds rose modestly to ₦112.9 billion, while total liabilities increased to ₦4.44 trillion from ₦3.34 trillion.
Equity More Than Doubles on Capital Raise and Profit Retention
Total equity attributable to shareholders surged to ₦621.7 billion, more than doubling from ₦256.4 billion in the prior year.
The sharp increase was driven by:
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Retained earnings growth to ₦273.2 billion, from ₦103.3 billion
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Right issue proceeds of ₦144.5 billion
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Special placement of ₦49.0 billion
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Higher share capital and share premium following equity issuance
Share capital rose to ₦20.06 billion, from ₦10.72 billion, while share premium increased sharply to ₦240.6 billion from ₦56.4 billion.
Additional Tier 1 capital remained unchanged at ₦21.0 billion, supporting regulatory capital adequacy.
Dividend and Shareholder Actions
During the year, Wema Bank paid dividends amounting to ₦21.43 billion, while simultaneously strengthening capital through equity issuance. This reflects a balance between rewarding shareholders and reinforcing the balance sheet to support future growth.
Contingent Liabilities Increase
Contingent liabilities rose to ₦663.1 billion, compared with ₦387.0 billion in 2024, indicating higher off-balance-sheet exposures, which may include guarantees, letters of credit, and performance bonds.
Investors King Takeaway
Wema Bank Plc delivered a transformational FY 2025, marked by rapid asset growth, a stronger deposit base, and a materially enhanced equity position following significant capital raising activities.
The sharp expansion in loans and investment securities positions the bank for higher income generation, while the strengthened capital base improves resilience and regulatory headroom.
However, the pace of balance-sheet growth and rising contingent exposures will require close monitoring of asset quality and risk management in subsequent periods.
