Wema Bank Rises as Earnings Boost Buy Side Sentiment
Wema Bank Plc rose near record high in the equities segment of the Nigerian Exchange, NGX, ahead of the financial institution’s final capital raise in April, 2025. The stock experienced bargain hunting which bolstered the bank’s market value to N257.162 billion on NGX.
According to market analysts, Wema Bank Plc share has been uptrend as a results improved buying sentiment after its earnings release in January. Since then, the bank has seen positive price movement on steady basis, reflecting investors’ sentiment and outlook on its future earnings streams.
With huge share volumes transacted in the equities market, Wema Bank rose from N11.35 at the beginning of trading week to N12 on Friday. Details from its unaudited financial statement revealed that Wema Bank posted N88.83 billion as profit in 2024, a significant uptick of 136% year on year from N35.988 billion in financial year 2023.
The bank’s bottom line strengthened as a results of strong top line performance in the year, with gross earnings of N430.258 billion, up by 89.6% year on year from N226.914 billion in 2023. This lifted the tier-2 bank earnings per share to 414.5 kobo from 279.9 kobo in the financial year 2023.
Wema Bank Plc is in the midst of a plan to raise additional capital to meet its recapitalisation demand. Its chief executive officer and managing director, Moruf Oseni, disclosed the bank’s plan to raise N200 billion in fresh capital to complete its capitalisation exercise.
Oseni said the fresh capital would be raised through a combination of a rights issue and special placement. He said that the two would start on April 1 and would mark the second and final tranche of the bank’s capital raise exercise.
According to him, this will be supplementing the N40 billion raised in the first tranche and will ensure that the bank surpasses the CBN minimum requirement for national banking authorisation.
Oseni said that Wema Bank, had prior to the CBN’s announcement, already launched a N40 billion rights issue in December 2023. “This received the approval of the CBN and the Securities and Exchange Commission (SEC) in 2024,” he added. #Wema Bank Rises as Earnings Boost Buy Side Sentiment DeepSeek Beats ChatGPT in AI, Rivals Stocks Plunge
