Wema Bank Announces Growth Of 135.8% In Profit Before Tax

Wema Bank PLC has announced its unaudited 9M 2021 financial results. 

Commenting on the results, the Chief Finance Officer Mr Tunde Mabawonku said, “we are delighted to announce the Bank’s 9M 2021 results which shows strong growth in key financial metrics despite the challenging macro-economic environment arising from heightened inflation, supply chain disruptions and the continued pass-through impact of the Covid-19 pandemic.”

“The numbers show the Bank continues to grow and improve its market share. We have now comfortably crossed the ₦1trillion mark in total assets and have a share of close to 3% of industry deposits”.

Wema Bank recorded an increase of 135.8% in profit before tax (PBT) to close the quarter at N7.2billion. This follows a Year-on-Year growth of 9.1% in gross earnings to ₦63.1billion in 9M 2021 from ₦57.8billion in 9M 2020.

According to Tunde Mabawonku, “The key measure of success for us is growth in customer numbers and customer activity – and we are glad that we are reporting strong growth here.” Deposit Liabilities grew by 9.3% to ₦879.8billion in 9M 2021 from ₦804.9billion in FY 2020 while Total Asset increased by 10.7% to ₦1.08trillion in 9M 2021 from ₦979.5billion in FY 2020.

We have also unveiled our new Mission and Vision statements which align to our strategy. We want to be the dominant digital platform in Africa delivering seamless financial services. This plan started with the launch of ALAT a few years ago and is now being accelerated in the last few months.

“We are sure to close the year with an even stronger performance; we will also continue to focus on our digital business, which is a key boost for customer acquisition, consumer lending and transaction volumes while not neglecting our corporate and commercial play.  On our commercial business, we will continue our aggressive strategy to improve our commercial lending business alongside trade and other revenue lines’.

Income Statement

• Gross earnings increased by 1% (Y-o-Y) to ₦63.1billion in 9M 2021 from ₦57.8billion in 9M 2020.
• Profit before Tax (PBT) and Profit After Tax (PAT) of ₦2billion and ₦6.2billion respectively, an increase of 135.8% in 9M 2021 (9M 2020; ₦3.1billion PBT, ₦2.6billion PAT).
• Net-Interest Income grew to ₦4billion in 9M 2021from ₦20.1billion in 9M 2020; growth of 41.5%.
• Non-Interest Income also increased from ₦4billion in 9M 2021 to ₦11.5billion; growth of 0.9%.

Statement of Financial Position

• Deposit Liabilities up by 3% to ₦879.8billion in 9M 2021 from ₦804.9billion in FY 2020.
• Loans and Advances to Customers rose by 3% to ₦397.3billion in 9M 2021 from ₦360.1billion in FY 2020.
• Total Asset increased by 7% to ₦1.07trillion in 9M 2021 from ₦979.5billion in FY 2020.

Key Ratios

• Return on average equity of 15.04% in 9M 2021 (9M 2020; 7.26%)
• Return on average assets of 0.90% in Q9M 2021 (9M 2020; 0.48%)
• 30% Non-performing loan ratio (9M 2020; 4.67%)
• Capital adequacy ratio of 11.64% (9M 2020; 11.35%)

Operational Achievements

• Fitch re-affirms Wema Bank’s National Long-term rating at (BBB)
• GCR and Agusto re-affirm Wema’s National Long-term rating at (BBB-)