Wema Bank has been a standout performer, main the banking shares in Nigeria.
As of September 12, 2025, its shares have soared 139.56% year-to-date, outperforming each the NGX All-Share Index (+36.55%) and the NGX Banking Index (+40%).
This rally builds on a 171% leap in 2024 and a 47% acquire in 2023, cementing its popularity because the sector’s star performer.
To place that into perspective: an investor who put N1 million into Wema Bank shares in 2023 would now be sitting on about N3.89 million, a revenue of practically N2.9 million in simply over two years.
Additionally, the story isn’t just about capital positive aspects. The bank has additionally been elevating dividends at a formidable tempo, with payouts rising at a five-year CAGR of 69.25%.
For 2024, it doubled its dividend to N1 per share from N0.50 in 2023, the best in over ten years.
So, what’s powering this relentless run?
Profitability.
Wema Bank has achieved a compounded revenue progress charge of 79% yearly over the previous 5 years, the second-best document amongst listed banks.
- Within the first half of 2025 alone, it reported N87.5 billion in revenue, up 225% year-on-year, already surpassing its 2024 full-year determine.
- Gross earnings climbed to N303.2 billion, with each curiosity revenue (+65%) and non-interest revenue (+91%) growing.
- With a trailing ROE of 56.4%, the best within the sector, Wema is squeezing much more worth out of shareholders’ fairness than its friends.
The steadiness sheet:
Whole property rose to N3.96 trillion by mid-2025, deposits nudged as much as N2.6 trillion, whereas loans expanded 19% to N1.43 trillion.
Crucially, its non-performing mortgage (NPL) ratio sits at 3.17%, an indication that progress has not come on the expense of asset high quality.
Recapitalization:
On September 10, 2025, Wema Bank introduced the completion of its N150 billion rights subject, boosting qualifying capital to N214.7 billion.
That places it comfortably above the N200 billion CBN threshold and, importantly, effectively forward of the March 2026 deadline.
Whereas some friends scramble to boost capital, Wema has de-risked early, incomes it further investor confidence.
Valuation nonetheless appears attention-grabbing.
Regardless of buying and selling at 1.5x e book worth (above its internet property of N323 billion), the inventory’s price-to-earnings ratio sits at simply 2.11x, beneath the trade common of three.0x.
For buyers, this mix of premium e book worth, low cost earnings a number of, and sector-leading ROE makes the inventory look each justified and nonetheless undervalued on sure metrics.
General, Wema’s bullish run is clearly supported by fundamentals, speedy revenue progress, sector-beating ROE, robust steadiness sheet, and this early recapitalization might additional maintain investor confidence.
However with the inventory already delivering outsized positive aspects, the actual query for buyers is whether or not Wema Bank can proceed rewriting the foundations, or if the market is pricing in an excessive amount of too shortly.
Administration, nonetheless, stays assured. CEO Moruf Oseni framed the bank’s trajectory this manner:
“Three years in the past, we took our Revenue Earlier than Tax from N14.75 billion in 2022 to N43.59 billion in 2023, and in 2024, our PBT stood at a formidable N102 billion. Now, simply midway by means of 2025, we’ve achieved over 99% of our 2024 full-year PBT in simply H1, and for us, that is simply a place to begin.”
Extra so, at a price-to-sales ratio of simply 0.54, the inventory nonetheless trades at a reduction to friends, whereas its price-to-earnings a number of of two.11x stays beneath the trade common of three.0x.
Each measures recommend the market might not have totally priced in Wema’s earnings energy and income power, hinting at additional upside regardless of the outsized positive aspects.
