Oseni’s Masterstroke: Wema Bank’s Supersonic Turnaround
Under the stewardship of its incumbent CEO, Moruf Oseni, Wema Bank has undergone a supersonic turnaround, defying industry trends and redefining the Nigerian banking landscape. Since taking the helm, Oseni has spearheaded a transformative journey, injecting fresh energy and innovative thinking into the venerable institution. With a razor-sharp focus on digitalization, customer-centricity, and prudent risk management, Wema Bank has emerged from the shadows, posting record-breaking profits and cementing its position as a force to be reckoned with in the banking sector.
Wema Bank’s impressive financial performance in 2025 was driven by a combination of strong interest income, diversified non-interest income, and efficient cost management. The bank’s interest income grew by 43.1% to ₦394.19 billion, driven by a robust loan book and improved yields. This growth was fueled by a 41% increase in loans and advances to customers, which reached ₦1.75 trillion.
Wema Bank’s interest expense increased by 30.5% to ₦159.82 billion, reflecting the bank’s growing deposit base and higher funding costs. Deposits from customers grew by 30% to ₦3.28 trillion, providing a stable funding base for the bank’s lending activities.
The bank’s net interest income surged by 53.4% to ₉ million in 2024, indicating a healthier loan portfolio.The bank’s interest income after impairment grew by 55.1% to ₦215.7 billion, driven by strong net interest income and manageable impairment charges.
Wema Bank’s non-interest income surged by 65.1% to ₦258.1 billion, driven by a 30% increase in digital transactions and a 50% growth in fees and commissions. The bank’s digital banking platform, ALAT, was a key contributor to this growth.The bank’s operating income grew by 52.3% to ₦473.47 billion, driven by strong net interest income and diversified non-interest income.
Wema Bank’s 2025 financial results demonstrate the bank’s mastery of cost optimization and risk management, driving impressive profitability. The bank’s cost-to-income ratio improved to 53.1% from 63.2% in 2024, indicating efficient cost management. This was achieved through strategic investments in digital transformation and talent acquisition, which drove a 30.5% increase in operating expenses to ₦251.4 billion.
The bank’s operating expenses grew at a slower pace than its operating income, which surged by 52.3% to ₦473.47 billion. This demonstrates Wema Bank’s ability to optimize costs while driving revenue growth. The bank’s digital transformation efforts have been a key driver of this efficiency, reducing reliance on physical branches and increasing adoption of digital channels.
Wema Bank’s risk management strategy has been prudent, with a focus on maintaining a healthy loan portfolio. The bank’s non-performing loan (NPL) ratio improved to 4.1% from 5.2% in 2024, indicating a healthier loan portfolio. Impairment charges increased by 20.5% to ₦18.67 billion, reflecting the bank’s proactive approach to risk management.
The bank’s profit before tax margin expanded by 640 basis points to 33.9%, reflecting strong revenue growth and efficient cost management. The return on equity (ROE) improved to 25.1% from 20.5% in 2024, indicating Wema Bank’s ability to generate strong returns for shareholders.
Wema Bank’s efficient cost management and prudent risk management strategy have driven impressive profitability, positioning the bank for sustainable growth and success. The bank’s focus on digital transformation and customer-centricity is expected to continue driving value for shareholders in the years to come
A Masterclass in Asset and Liability Management
Wema Bank’s 2025 financial results demonstrate its mastery of asset and liability management, a critical aspect of bank fund management. The bank’s strategic focus on acquiring funds and allocating them to maximize profitability while maintaining liquidity, solvency, and regulatory compliance has yielded impressive results.
The bank’s total assets grew by 41% to ₦5.06 trillion, driven by a 41% increase in loans and advances to customers and a 48.5% growth in investment securities. This expansion was funded by a 30% increase in deposits from customers, which reached ₦3.28 trillion, and a 41% growth in shareholders’ equity to ₦621.7 billion.
Wema Bank’s liability management strategy focused on diversifying its funding sources, reducing dependence on expensive wholesale funding. The bank’s deposit mix improved, with a higher proportion of low-cost deposits, contributing to a 30.5% increase in interest expense, lower than the 43.1% growth in interest income.
The bank’s asset allocation strategy prioritized high-yielding assets, driving a 53.4% surge in net interest income. Wema Bank’s investment securities portfolio grew by 48.5%, providing a stable source of income and liquidity.
The bank maintained a strong capital position, with a capital adequacy ratio of 15.1%, exceeding regulatory requirements. Wema Bank’s liquidity position remained robust, with a liquidity ratio of 52.1%, indicating its ability to meet short-term obligations.
Wema Bank’s asset and liability management strategy has enabled it to navigate Nigeria’s challenging banking environment, delivering strong financial performance and positioning itself for sustainable growth.
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Wema Bank’s operating expenses increased by 30.5% to ₦251.4 billion, reflecting the bank’s investments in digital transformation and talent acquisition. The bank’s cost-to-income ratio improved to 53.1% from 63.2% in 2024, indicating efficient cost management.
The bank’s profit before tax margin expanded by 640 basis points to 33.9%, reflecting strong revenue growth and efficient cost management. The return on equity (ROE) improved to 25.1% from 20.5% in 2024, indicating Wema Bank’s ability to generate strong returns for shareholders.
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