Strongest At Its Oldest: The Story Of Nigeria’s Oldest Indigenous Bank At 80

Not all institutions grow stronger with age. For some, longevity be­comes a burden, weighed down by resistance to change, outdated models, or the inability to navigate evolving landscapes.

Others, however, turn the passage of time into a competitive advantage—learn­ing, transforming, and continuously evolv­ing to stay ahead. They refine their strate­gies, deepen their expertise, and harness decades of experience to build resilience and drive innovation.

The banking industry, in particular, is one where longevity is not just about sur­vival but about sustained relevance.

As financial markets shift, customers’ expectations change, and regulatory land­scapesevolve, onlybanksthatcanadaptand innovate stand the test of time.

Yet, amidst this constant flux, one in­stitution has not just stood firm, but has consistently grown stronger: Wema Bank.

As Nigeria’s oldest indigenous bank, Wema Bank is not only standing strong at 80 but also breaking new grounds.

The bank’s remarkable journey demon­strates that age is not a liability but a tes­tament to enduring strength, continuous evolution, and a relentless pursuit of ex­cellence.

For eight decades, Wema Bank has de­fied the odds of economic turbulence, reg­ulatory changes, and industry disruptions to emerge stronger with each passing year.

This demonstrated adaptability and remarkable resilience has solidified the Bank’s position as a leader in the nation’s financial services industry.

Weathering the Storms: The True Meaning of Resilience

Resilience has been the story of Wema Bank’s since its founding as Agbonmagbe Bank Limited in 1945– a year that marked the end of the Second World War, which left in its wake a global landscape eager for new beginnings.

At the time, Nigeria’s economy was heavily influenced by foreign banks, mak­ing the establishment of an indigenous bank not just an act of entrepreneurship but a statement of national pride and eco­nomic autonomy.

Agbonmagbe Bank was an institution that was primed to grow with the nation, echoing the resilience and aspirations of its people. The bank emerged as a beacon of Nigeria’s economic revival during a time of global uncertainty, laying the groundwork for the nation’s journey toward economic and political independence 15 years later.

Agbonmagbe Bank survived the era of “mushroom banking” which was charac­terised by rapid and largely unregulated growth in the banking sector, particularly in the years leading up to the enactment of the first comprehensive banking legislation in 1952.

During that era, many banks collapsed in quick succession due to factors such as the stringent regulations by the colonial government, leadership weaknesses, bad debt, inconsistent banking practices, lack of adequate capital base or the lack of reg­ulatory oversight. This instability created a climate of uncertainty and distrust in the Nigerian banking sector.

Agbonmagbe Bank grew alongside Ni­geria’s journey towards independence. It was not just about banking; it was about fostering economic growth in a region ea­ger to assert its identity.

In 1969, as Nigeria was grappling with the civil war, under the stewardship of the Western Nigeria Marketing Board, The Bank underwent a transformation, re­branding to Wema Bank.

This was more than a name change; it symbolized the bank’s commitment to growth and adaptation, mirroring the evolving Nigerian society.

Through the post-war years, the Ni­gerian economy saw several challenges including currency devaluations, policy shifts, global financial crises, and industry reforms.

Yet, through these economic tempests, Wema Bank not only survived but thrived, weathering the storms that have reshaped the financial sector. The bank’s strategy has been a blend of cautious optimism and ag­gressive innovation.

One of the most defining moments in the bank’s history was the banking consol­idation era of the mid-2000s.

Faced with stringent capital require­ments set by the Central Bank of Nigeria (CBN), Wema Bank took a strategic step by restructuring and streamlining operations.

The Bank was one of the 25 banking groups to emerge after reforms that slashed the number of banks from 89 institutions.

However, internal challenges soon fol­lowed. A boardroom crisis and internal conflicts. The situation escalated to the point where regulatory intervention from the CBN became necessary to stabilize the bank and restore confidence. Subsequent­ly, the bank voluntarily transitioned to a regional bank, refocusing its strategy to operate in the South-West.

As a bank that is not merely content with Surviving, Wema Bank in 2015, after strengtheningitsoperationsandexpanding its footprint into South-South and Abuja, successfully regained its national banking license—a move that signaled its renewed strength and ambition.

Today, Wema Bank stands tall as a na­tional bank with a digital edge, constantly innovating to serve the ever-changing needs of its customers.

One of Wema Bank’s most defining qualities is its ability to evolve with the times. In an era where digital banking has become the standard, Wema Bank has led the charge in redefining customer experi­ence.

The launch of ALAT by Wema in 2017 was a game-changer. As Nigeria’s first fully digital bank, ALAT transformed how bank­ing was done—offering a seamless, paper­less experience, automated savings, instant loans, and virtual card services. This moves positioned Wema Bank as the pioneer of digital banking in Nigeria.

The impact of ALAT has been pro­found. ALAT is not just offering banking services online, it redefined the banking experience for the digital native. Within 8 years of launch, the platform has attracted millions of users, expanded financial inclu­sion, and won numerous awards for digital innovation.

This digital transformation has been crucial in keeping Wema Bank relevant and competitive. With features tailored for both individual and business users, ALAT has expanded from personal banking to so­phisticated corporate solutions like ALAT for Business, ensuring that Wema Bank remains at the forefront of digital banking advancements for individuals, small busi­nesses and large corporations. The bank hascontinuedtochurnouttechnology-driv­en products, embedded finance solutions and integrated customer experience.

Furthering its commitment to financial empowerment, the bank introduced ALAT Xplore, Nigeria’s first licensed banking app for teenagers (13-17 years old).

Designed to foster financial literacy and independence, ALAT Xplore offers savings goals, interest earnings, bill payments, and a customizable interface.

Parents can monitor and manage their child’s banking activities through a paren­tal-control framework, ensuring a secure and educational banking experience.

To address the traditional challenges faced by cooperative societies, such as man­ual record-keeping, limited access to loans, poor communication, and insecurity, the bank launched CoopHub, a groundbreak­ing digital platform.

CoopHub offers a range of features that promote efficiency, transparency, and security. Leaders of cooperative societies can manage their operations from a simpli­fied dashboard, accessing financial records, communication, member analytics, and more in real-time.

Members also benefit from increased accesstoloans, seamlesscontributiontrack­ing, secure transactions, and easy commu­nication with leaders.

The platform provides a Three-Factor Authentication System to ensure secure transactions, requiring approval from three members, including the admin.

Additionally, CoopHub offers a Digitized Database for record-keeping, User Manage­ment for efficient member management, and a Transparent Overview of contribu­tions.

Wema Bank introduced ALATPay, a seamless digital payment solution designed to help businesses of all sizes digitize their transactions.

ALATPay enables Nigerian merchants to process transactions globally, offering secure payments, instant settlements, and customizable storefronts. It allows business­es to select preferred payment channels (cards or bank transfers) and access APIs to facilitate transactions.

The bank strengthened its cross-border payment solutions with the launch of the ALAT UnionPay card, in partnership with ChamsSwitch Limited.

This initiative enhances international transactionsbyleveragingUnionPay’sglob­al network, which spans 75 countries with over 180 million issued cards.

The card is denominated in domiciliary accounts, allowingbothpersonalandcorpo­rate users to make international transac­tions without currency conversion.

As a bank committed to digital trans­formation and technological advance­ment, Wema Bank launched Hackaholics, a tech-driven accelerator programme designed to nurture innovators, entrepre­neurs, and problem solvers across Africa. Since its inception in 2019, Hackaholics has evolved into a leading innovation hub, pro­viding young tech talents with resources, mentorship, andfundingtodevelopground­breaking solutions for the financial sector and beyond. Five editions of Hackaholics have been done, with over $300,000 dis­bursed to over 51,000 participants.

These milestones, coupled with Wema Bank’s focus on digital innovation and customer-centric solutions, clearly demon­strate its commitment to staying ahead of the curve.

As Wema Bank gears towards its 80th anniversary celebration, one can point to a series of significant achievements that un­derscore the Bank’s continued growth and success in recent times. These milestones reflect the Wema Bank’s positive impact on its customers and the communities it serves.

Despite the economic fluctuations that have challenged the banking sector, Wema Bank has maintained a strong financial health, reporting steady growth in prof­its, customer deposits, and assets over the years.

The Bank recorded a PBT of N43.5 billion in 2023 and then surged to N102.08 billion in the unaudited financial report for 2024, a remarkable 134% increase year-on-year.

This impressive performance is mir­rored in the bank’s balance sheet, with total assets growing by 61% to N3,610.92 billion in Q4 2024, compared to N2,240.06 billion in 2023. Customer deposits have also seen substantial growth, increasing by 36% to N2,529.62 billion from N1,860.57 billion in 2023.

The bank’s financial strength has gar­nered recognition from reputable rating agencies. Agusto and Co. upgraded Wema Bank’s rating to BBB+, while Global Credit Ratings (GCR) assigned a BBB rating.

These independent assessments af­firm the bank’s financial stability and its capacity to meet its financial obligations, providing further assurance to customers and investors. This positive momentum is also reflected in the bank’s share price, which experienced a robust 58.04% year-to-dategrowthin2024, signalingstrongmarket confidence in Wema Bank’s prospects and its strategic direction.

Reinforcing this investor confidence, Wema Bank successfully raised N40 billion in capital in December 2023, bolstering its capital buffer and positioning it for future growth. The bank has also announced plans to raise an additional N200 billion to meet the new CBN capital requirements, further demonstrating its proactive ap­proach to regulatory compliance and its commitment to sustainable growth.

Wema Bank’s Future Outlook

Longevity in banking is not just about survival; it is about continuous reinven­tion and relevance, anticipating the shift­ing sands of the financial landscape and adapting to them with agility and foresight.

Wema Bank’s trajectory, from its humble beginnings as a small regional institution to its status as a national and digitally driven financial powerhouse, is a compelling narrative etched in determina­tion, fueled by adaptability, and guided by visionary leadership.

Its story is one of a phoenix rising, not from the ashes of defeat, but from the relent­less pursuit of excellence and innovation. As Nigeria’s oldest indigenous bank, Wema Bank embodies the resilience and adapt­ability necessary to lead in a sector marked by rapid change and high competition.

Its journey through economic turbu­lence, regulatory shifts, and technological disruptions paints a picture of a bank that is not just surviving but thriving as one of the best in Nigeria.

As Wema Bank moves into its next de­cade, it carries with it the weight of history, but also the energy of a forward-thinking institution. With a legacy built on trust, in­novation, and a deep understanding of the Nigerian market, Wema Bank is well-posi­tioned to shape the future of banking in Ni­geria for generations to come. It continues to symbolize hope and stability in Nigeria’s financial sector, proving that indeed, it is at its strongest at its oldest.

Ekenedilichukwu Ugbachie is a finan­cial analyst based in Lagos.