LAGOS, NIGERIA – 4th April 2022 – Wema Bank PLC (Bloomberg: WemaBank: NL) (“Wema” or “the Bank”) announces its unaudited FY 2021 financial results.
Wema Bank Plc’s resilience was on display as the digitally driven financial institution announced its financial results for the year ended December 31, 2021. The performance which capped a remarkable year showed strong growth in key financial indices especially as the bank crossed the ₦1trillion mark in total assets.
In a statement made to the public by the bank, the Managing Director. Mr. Ademola Adebise said, “I am delighted to announce our performance for the year ended 31st December 2021. The Bank’s FY 2021 results shows robust growth in all key financial metrics despite the challenging macro-economic environment.”
“Our year end numbers highlight the strong growth trajectory of the financial institution. We comfortably crossed the ₦1trillion mark in total assets, with a share of approximately 3% of industry deposits.”
Wema Bank recorded an increase of 108.3% in profit before tax (PBT) to close the year at N12.38 billion. This was driven by a Year-on-Year growth of 15.35% in gross earnings to ₦92.14billion in FY 2021 from ₦79.88billion in FY 2020.
The Chief Finance Officer of the Bank, Mr. Tunde Mabawonku noted that “a key measure of success for us is a consistent growth in our balance sheet and customer base – and we are glad that we are reporting healthy growth in all these areas.”
Deposit Liabilities grew by 15.23% to ₦927.47billion in FY 2021 from ₦804.87billion in FY 2020 while Total Asset increased by 20.23% to ₦1.164.52billion in FY 2021 from ₦968.58billion in FY 2020.
Mr Mabawonku also added that, ” Looking forward, we expect that the strong growth will be sustained despite the tough business climate as we execute our customer experience improvement initiatives built around a digital first banking strategy and become first in class in that sphere. The bank 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 lending business alongside trade and other revenue lines. We have also unveiled our new Mission and Vision statements which underpins our corporate strategy. We want to be the dominant digital platform in Africa delivering seamless financial services.
Income Statement
- Gross earnings increased by 15.35% (Y-o-Y) to ₦92.14billion in FY 2021 from ₦79.88billion in FY 2020.
- Profit Before Tax (PBT) of ₦12.3billion in FY’21, an increase of 108.26% YoY from N5.95billion in FY’20 while Profit After Tax (PAT) of ₦8.93billion in FY’21, an increase of 94.53% YoY from N4.59billion in FY’20.
- Net-Interest Income grew to ₦39.87billion in FY 2021from ₦30.86billion in FY 2020; growth of 29.22%.
- Non-Interest Income also increased from ₦16.83billion in FY 2021 to ₦18.83billion; a growth of 11.91%.
Statement of Financial Position
- Deposit Liabilities up by 15.23% to ₦927.47billion in FY 2021 from ₦804.87billion in FY 2020.
- Loans and Advances to Customers rose by 16.33% to ₦418.86billion in FY 2021 from ₦360.08billion in FY 2020.
- Total Asset increased by 20.23% to ₦1.164.52billion in FY 2021 from ₦968.58billion in FY 2020.
Key Ratios
- Return on average equity of 17.26% in FY 2021 (FY 2020; 14.31%)
- Return on average assets of 1.16% in FY 2021 (FY 2020; 0.85%)
- Non-performing loan ratio of 4.88% in FY’21 from 4.45% in FY’20
- Capital adequacy ratio of 15.46% in FY’21 from 12.35% in FY’20
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-)
Financial Performance Highlights
Below is the performance summary of the Bank.
|
Income statement (₦’bn) |
FY 2021 |
FY 2020 |
(∆) |
(∆%) |
|
Gross Earnings |
92.14 |
79.88 |
12.26 |
15.35% |
|
Interest Income |
73.30 |
63.04 |
10.26 |
16.27% |
|
Net Interest Income |
39.87 |
30.86 |
9.01 |
29.19% |
|
Non-interest income |
18.83 |
16.83 |
2 |
11.88% |
|
Operating expense |
44.22 |
36.00 |
8.22 |
22.83% |
|
Profit before Tax |
12.38 |
5.94 |
6.44 |
108.3% |
|
Profit after Tax |
8.93 |
4.59 |
4.34 |
94.53% |
|
Earnings Per Share |
23.2kobo |
11.9kobo |
11.3 |
95 % |
|
FY 2021 |
FY 2020 |
(∆) |
(∆%) |
|
|
Total Assets |
1,164.52bn |
968.58bn |
195.95bn |
20.23% |
|
Loans and Advances |
418.86bn |
360.08bn |
58.79bn |
16.33% |
|
Deposits |
927.47bn |
804.87bn |
122.60bn |
15.23% |
|
Shareholders’ Funds |
70.36bn |
59.14bn |
11.22bn |
18.97% |
|
Key Ratios (in %) |
FY 2021 |
FY 2020 |
(∆) |
|
Return on Average Equity |
17.26 |
14.31 |
2.95 |
|
Return on Average Asset |
1.16 |
0.85 |
0.31 |
|
Yield on Asset |
14.29 |
14.49 |
-0.20 |
|
Net Interest Margin |
6.18 |
5.74 |
0.44 |
|
Capital Adequacy Ratio |
15.46 |
12.35 |
3.11 |
|
Loan-to-Deposit Ratio |
46.96 |
43.86 |
3.10 |
|
Non-Performing Loans Ratio |
4.88 |
4.45 |
0.43 |
|
Cost to Income Ratio |
78.12 |
83.79 |
5.67 |
The proposed dividend of 8kobo per share is based on the total number of shares that existed as of 31st December 2021. Subsequently, the Bank obtained all regulatory approvals relating to the share capital reconstruction. The implication of this is that the proposed dividend of 8kobo per share would now translate to 24kobo per share as the number of shares would have reduced from 38,574,466,082 units as of 31 December 2021 to 12,858,155,360 units while the amount of dividend declared remains the same.
Conference Call Invitation
Wema Bank Plc. (Bloomberg: WemaBank:NL) will hold a teleconference call for investors and analysts on Wednesday, April 06, 2022 at 1pm Lagos Time with its senior management, to announce the audited financial results for the year ended December 31st, 2021. There will be an opportunity at the end of the call for management to take questions from investors and analysts.
Kindly send email to pre-register for conference call: Investor.relations@wemabank.com
For further information, please contact:
Tunde Mabawonku
Chief Finance &Strategy Officer
+234 1 4622632
Funmilayo Falola
Marketing Communications and Investor Relations
+234 1 2778627
Wema Bank Investor Relations
Investor.relations@wemabank.com
+234 (01) 2778600
About Wema Bank Plc
Wema Bank Plc (NGX: WEMABANK) is the pioneer of Africa’s first fully digital bank, ALAT, and one of Nigeria’s most resilient banks. With decades of experience in the business of banking, the Bank has remained innovative in delivering value to its stakeholders. Wema Bank operates a network of over 150 branches and service stations backed by a robust ICT platform. The publicly quoted Nigerian company has successfully built a legacy of trust and resilience that has won it the loyalty of its customers. The Bank is constantly introducing products and services tailored to the needs of its customers at every stage of their lives. It is a proud partner to more than one million individuals, families and businesses across Nigeria, helping them achieve their personal and financial goals.
More information can be found at https://www.wemabank.com/about-us/
Caution Regarding Forward Looking Statements
Any forward-looking statement contained in this presentation, based on past or current trends and/or activities of Wema Bank should not be taken as a representation that such trends or activities will continue in the future. No statement in this presentation is intended to be a profit forecast or to imply that the earnings of the Bank for the current year or future years will necessarily match or exceed the historical or published earnings of the Bank. Each forward-looking statement speaks only as of the date of the statement. Wema Bank expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Wema Bank’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.