Wema Bank Profits Overshadowed by Soaring Operating Expenses

Wema Bank Plc, under the leadership of Moruf Oseni, reported a significant surge in operating expenses despite strong growth in profits and deposits. The bank’s audited financial results for 2023 revealed a 32% increase in operating expenses, reaching N78 billion compared to N59 billion in 2022.

This substantial rise in expenses could raise concerns about the bank’s long-term profitability, even though profits before tax grew by 196% to N43.59 billion, and deposits increased by 59.65% to N1.86 trillion. The significant increase in expenses could potentially eat away at future profits if not addressed.

While the bank highlights its achievements, investors may be wary of the ballooning operating costs. Wema Bank will need to explain how it plans to control these expenses to ensure sustainable growth and shareholder returns.