Wema Bank Plc, one Nigeria’s Commercial banks, has recorded a 32 percent increase in its operating expenses to N78bn in 2023, from N59bn in the year 2022.
The bank’s audited financial result for the year ended December 31st, 2023 has revealed.
According to investopedia.com an operating expense, is an expense that a business incurs through its normal business operations. It includes rent, equipment, inventory costs, fund allocated for research development among others.
Although the bank saw its deposits grow by 59.65 per cent to N1.86tn in 2023 from N1.16tn in the previous year.
According to the lender’s full-year 2023 audited financial statement filed with the Nigerian Exchange Limited, its profit before tax improved by 196 per cent to N43.59bn from N14.75bn in 2022 and return on equity stood at 39.28 per cent.
Meanwhile, all effort to get the details and specific of the skyrocketing spike in the operating expenses of the bank was abortive, as all effort by our correspondent to get through Mr. Femi Akinfolarin the bank’s head, Strategy & Investor Relations was abortive.
The bank also, disclosed that it raised N40bn in its first tranche of capital raise but awaiting final regulatory approvals.
While, the directors of the Bank have proposed a 50 kobo dividend per share for 2023, up from 30kobo in the previous year.
Reacting, Mr Moruf Oseni, the managing director/chief executive Officer of the bank, said:
“2023 showcased a revitalised Wema Bank as evidenced by the considerable improvements in our numbers. The performance is headlined by impressive improvements in profit before tax, which grew strongly by 196 per cent”.
He noted that “The growth of gross earnings by 72 per cent, total assets by 56 per cent and earnings per share at 279.5 kobo shows the core improvements to our balance sheet. In addition, our cost-to-income ratio of 64.37 per cent has witnessed significant improvement from the previous period.”
According to him, the N40bn it raised had positioned it for the new capital licensing requirements of the Central Bank of Nigeria.
“Wema Bank will accelerate its capital management plans and ensure we embark on the journey to raise the required capital as quickly as possible.
“We have partnered with the Federal Government on upskilling two million MSMEs, provided engagement platforms for all NYSC members and now implementing partnerships in health, education, women’s empowerment and the green economy.”
“In the months ahead, we will be developing platforms and supporting initiatives that prioritise the needs of our customers, leveraging technology to solve problems across all sectors,” Oseni declared.
Providing the outlook of the bank for 2024, Dr. Oluwayemisi Olorunshola, the bank’s chairman board of directors, said “In the coming year, the bank will continue to push for growth and the achievement of its strategic objectives.
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