WEMA Bank Plc Reports Gross Earnings of N59.59bn

The bank recorded Gross earnings of ₦59.59bn, a y/y increase of 50% (H1 2021: ₦39.82bn). Interest Income up 55% y/y to ₦49.75bn (H1 2021: ₦32.19bn). Non-Interest Income up 29% y/y to ₦9.85bn (H1 2021: ₦7.64bn).
Profit before tax (PBT) was ₦6.13bn a y/y increase of 43% over the ₦4.30bn reported in H1 2021. Profit after tax (PAT) also increased y/y by 42% to ₦5.30bn (₦3.72bn in H1 2021). The bank grew its deposit year to date by 13% as of H1 2022 to ₦1,097.07bn from ₦968.17bn reported in FY 2021. Loans and advances rose by 7% to ₦447.23bn from ₦418.86bn in H1 2022.

Download the full press release below.

Wema Bank H1 PRESS RELEASE 

 

WEMA Bank Plc Reports Gross Earnings of N29.14billion for 3 Months

FINANCIAL RESULTS FOR THE PERIOD ENDED 31ST MARCH 2022 WEMA Bank Plc.

Reports a Gross Earnings of N29.14billion for the 3 months ended 31st March, 2022. LAGOS, NIGERIA – 5th May 2022

Wema Bank PLC (Bloomberg: Wema NL) (“Wema’ or “the Bank”), announces its unaudited results for the 3 months ended 31st March 2022 . 62% N17.96billion 58% N23.53billion 84% N5.61billion N3.05billion N3.3billion 119% N2.87 Billion

 

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WEMA BANK Announces 108.3% Growth In Profit Before Tax and Total Assets Now Above ₦1Trillion

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 %

 

Balance Sheet ()

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

Tunde.Mabawonku@wemabank.com

+234 1 4622632

 

Funmilayo Falola

Marketing Communications and Investor Relations

Funmilayo.Falola@Wemabank.com

+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.

 

Wema Bank announces growth of 135.8% in Profit Before Tax; Total Assets now above ₦1trillion Naira

LAGOS, NIGERIA – 22nd October 2021 – Wema Bank PLC (Bloomberg: WemaBank:NL) (“Wema” or “the Bank”) announces 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 9.1% (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 ₦7.2billion 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 ₦28.4billion in 9M 2021from ₦20.1billion in 9M 2020; growth of 41.5%.

· Non-Interest Income also increased from ₦11.4billion in 9M 2021 to ₦11.5billion; growth of 0.9%.

 

Statement of Financial Position

· Deposit Liabilities up by 9.3% to ₦879.8billion in 9M 2021 from ₦804.9billion in FY 2020.

· Loans and Advances to Customers rose by 10.3% to ₦397.3billion in 9M 2021 from ₦360.1billion in FY 2020.

· Total Asset increased by 10.7% 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%)

· 4.30% 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-)

WEMA BANK announces a growth of 149% in Profit Before Tax (PBT), to N4.3billion.

LAGOS, NIGERIA – 28th July, 2021 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema” or “the Bank”) announces its unaudited H1, 2021 financial results.   

Key Financial Highlights

Total assets N979.52bn (FY 2020) N1.02trn (H1 2021)
Gross earnings N37.95bn (FY 2020) N39.82bn (H1 2021)
PBT N1.72bn (H1 2020) N4.30bn (H1 2021)
CAR 11.00% (H1 2020) 13.2% (H1 2021)

Commenting on the results, Mr. Ademola Adebise, the Managing Director said, “We are pleased to release our results for the first half of the year. Our performance speaks to the spirit of resilience that runs through the organization as we have strongly bounced back from the covid impacted performance of the same period in 2020.

“As the economy opens back up fully, we expect to see a stronger performance for full year 2021. Over the course of the second half of 2021, the bank will continue its strong focus on the digital business, pushing for further gains in customer acquisition, consumer lending and transaction volumes while on the commercial side of the bank, we will continue to aggressively grow our commercial lending business alongside trade and other revenue lines.”

The bank recently appointed Mr. Emeka Obiagwu as an Executive Director while Prince Olusegun Adesegun & Adeyemi Adefarakan were appointed as Non-Executive Directors.

The Chief Finance & Strategy Officer, Tunde Mabawonku said “We are delighted to announce the Bank’s H1 2021 results. The performance shows growth in key financial metrics despite the challenging macro-economic environment arising from the covid 19 pandemic.”

  • Wema Bank recorded YoY growth of 149% in profit before tax (PBT) to close the quarter at N3bn;
  • Gross earnings grew by 4.94% y-o-y to ₦82bn in H1 2021 (H1 2020: ₦37.95bn).
  • Net fee and commission income increased by 71.7% y-o-y to ₦40bn in H1 2021(H1 2020: ₦3.1bn), due to 112.6% increase in credit related fees, 151.5% increase in management fees, 147.7% growth in fees on financial guarantees.

According to Mr. Mabawonku, “The key measure of success for us is growth in customers and customer activity – and we are glad that we are reporting strong growth here.”

  • Total liabilities grew by 4.9% to ₦9bn in H1 2021 (H1 2020: ₦909.2bn), driven by deposits from customers which grew by 0.5% to ₦808.8bn in H1 2021 (FY 2020: ₦804.8bn)
  • Cost of funds declined to 5.3% from 6.4% in H1, 2020. NPL numbers remained below 5% at 3.55% while Capital Adequacy of 13.24% is above the regulatory minimum of 10%.

 Income Statement

  • Gross earnings increased by 4.94% (Y-o-Y) to ₦82bn in H1’2020 from ₦37.95bn in H1 2020
  • Reported Profit before Tax (PBT) and Profit After Tax (PAT) of ₦30bn and ₦3.70bn, an increased by 148.8% in H1’2021 (H1’2020; ₦1.72bn PBT, ₦1.49bn PAT)
  • Net-Interest Income grew by 55.2% to ₦31bn ( H1’2020: ₦11.80bn)
  • Non-Interest Income declined to ₦64bn from ₦8.30bn in H1’2020

Statement of Financial Position

  • Deposit Liabilities up by 0.5% to ₦87bn (FY 2020: ₦804.87bn)
  • Net loans grew by 3.63% to ₦15bn (FY 2020: ₦360.08bn)
  • Total Asset increased by 4.76% to ₦02trn (FY 2020: ₦979.52bn)

Key Ratios

  • ROAE of 14.03% in H1’2021 (H1’2020; 6.25%)
  • ROAA of 0.82% in H1’2021 (H1’2020; 0.42%)
  • 55% NPL ratio (H1’2020; 5.58%)
  • CAR is 13.24% (H1’2020; 11.00%)

 Operational Achievements

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

WEMA Bank Plc, announces a 43.64% growth in Profit Before Tax (PBT), to N2.61billion for the 6 months ended 30th June 2019.

LAGOS, NIGERIA 26th July 2019 Wema Bank PLC (Bloomberg: Wema NL) (Wema or the Bank”), announces its unaudited results for 6 months ended 30th June 2019.

Financial Highlights

  • Gross earnings increased by 47% (Y-o-Y) to N40.83billion from N32.03billion in HI 2019.
  • Profit before Tax (PBT) grew by 64% Y-o-Y to N2.61billion in HI 2019 from N1.81billion in 2018
  • Deposit liabilities increased by 80% to N446.02billion from N369.20billion in 2018 FY
  • Net Loans increased to 96billion in H1 2019, an increase of 11.41% (N252.19 billion in 2018FY
  • Total Asset up by 40% to N632.53 billion (N488.80 in 2018 FY).

 

Ademola Adebise, MD/CEO of Wema Bank Plc, commenting on the results, stated that:

“The Financial Performance of the bank in the 1st half of the year is largely in line with our expectations and our strategic aspirations’

Despite the prevailing tepid economic conditions with GDP growing slowly at slightly above 2%, the bank has been able to grow deposits by 20.80% and increase its loan book by 11.41%. The Banks Loan to Deposit ratio (LDR) was above the new minimum threshold of 60% with NPLs below 5%. Gross Earnings increased by 27.47% to N40.83billion from N32.03billion reported in H1 2018 driven by a double-digit growth in Interest and Fee based income. Profit before Tax was N2.61billion, a 43.64% growth when compared to N1.82billion reported in H1 2018.

Regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 14.59% and Liquidity Ratio at 34.81%.

Within the 1st half of the year, inspired by the need for improvement of women and the society, the bank launched “Sara by Wema”, a female proposition designed to enable women benefit from growth opportunities that help maximize their personal or business goals. Also, within the period, the bank had its first Hackathon event with the aim of bringing the young and entrepreneurial mindset of Nigerian youths together to use technology to solve problems and to provide them with financial and advisory services. ALAT our flagship digital Bank now accounts for close to half-a-million customers on our platform’”.

Adebise further stated that, “the economy is still not growing fast enough and there are concerns that the fragile recovery can be derailed if key structural reforms are delayed”. For Wema Bank, our clear mandate of delivering on the Most Reliable, Convenient and Simple banking platform continues and we will measure our success by number of active customers and number of partnerships that we develop across the business landscape. We are positive that we will sustain the double-digit ROE numbers and provide better returns to shareholders.

‘Ademola Adebise (MD/CEO)

 

Financial Performance Review

Income statement (N’bn) HI 2019 H1 2018 (∆) (∆%)
Gross Earnings 40.83 32.03 8.8 27.47%
Interest Income 32.89 25.39 7.5 29.52%
Non-interest income 7.94 6.64 1.3 19.64%
Operating expense 16.40 13.57 2.83 20.93%
Profit before Tax 2.61 1.82 0.79 43.64%
Profit after Tax 2.25 1.57 0.68 43.31%
Earnings Per Share 11.60kobo 8.20kobo 3.4 41.46%

 

Balance Sheet (N’bn) H1 2019 FY 2018 (∆) (∆%)
Total Assets 632.53 488.80 143.73 29.40%
Loans and Advances (Net) 280.96 252.19 28.77 11.41%
Deposits 446.02 369.20 76.82 20.80%
Shareholders’ Funds 52.03 50.89 1.14 2.24%

 

Key Ratios (in %) HI 2019 H1 2018 (∆)
Return on Average Equity 10.57 7.39 3.18
Return on Average Asset 0.99 0.81 0.18
Net Interest Margin 5.69 7.24 -1.55
Capital Adequacy Ratio 14.59 13.27 1.32
Liquidity Ratio 34.81 32.05 2.76
Loan-to-Deposit Ratio 62.98 62.96 0.02
Non-Performing LoansRatio  3.55  3.31  0.24

 

 

 

Unaudited Results For The 9 Months Ended September 30, 2019 – Announces A Double-Digit Growth Of 55.56% In Profit Before Tax (Pbt), To N4.76billion

LAGOS, NIGERIA – 28th October 2019 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema” or “the Bank”) announces its unaudited Q3’2019 financial results. 

The Chief Finance Officer, Tunde Mabawonku gave the following updates:

“We are delighted to announce the Bank’s Q3 2019 results. The performance shows growth in key financial metrics despite the challenging macro-economic environment. Wema Bank recorded YoY growth of 55.56% in profit before tax (PBT) to close the quarter at N4.76billion. This was on the back of growth of 30.95% in Gross earnings from N48.99billion in Q3’2018 to N64.15billion in Q3’2019. The Bank continued to benefit from fees and other non-interest income which closed at N15.79billion in Q3’2019 compared to N10.10 billion in Q3’2018; a growth of 56.34%. Net interest income also recorded a growth of 8.85%, compared to Q3 2018. (Q3 2019; N17.2billion; Q3 2018; N15.8billion).’’

According to the Chief Finance Officer, “The key measure of success for us is growth in customers and customer activity – and we are glad that we are reporting strong double-digit growth here. Customer deposits grew by 23.69% to N456.8billion from N369.3billion in 2018 FY. Net loans grew by 13.76% from N252.2billion (2018 FY) to N286.9 billion (Q3 2019), with a loan to deposit ratio above the regulatory prescribed minimum threshold. NPL numbers remained below 5% while Capital Adequacy of 14.78% is above the regulatory minimum of 10%.

 

The Bank continues to do well in the Digital space, with ALAT. The Managing Director – Mr. Ademola Adebise also further reiterated this strong performance stating that, “The future for Wema remains growth through innovation and we are proud to be the leading Bank in the Digital Banking space. ALAT has revolutionized customer on-boarding in the industry, now we are taking on payments and commerce. We are creating a digital platform for youths, young entrepreneurs and young professionals. The Bank has also commenced trade partnership with the Bank of Africa group to strengthen its commercial business. We believe that with the focused execution of our 3-year strategy, Wema will remain the Bank to watch out for. The bank remains committed to sustaining this impressive performance and to deliver on the FY 2019 guidance across all key metrics.”

 

Income Statement

  • Gross earnings increased by 30.95% (Y-o-Y) to N15billion in Q3’2019 from N48.99billion in Q3 2018
  • Reported Profit before Tax (PBT) and Profit After Tax (PAT) of N76billion and N4.12billion, an increase of 55.56% and 56.06% respectively in Q3’2019 (Q3 2018; N3.06billion PBT, N2.64billion PAT)
  • Net-Interest Income grew to N2billion from N15.8bilion in Q3 2018; growth of 8.85%
  • A growth of 56.34% in Non-Interest Income to N79billion from N10.10billion in Q3 2018

 

Statement of Financial Position

  • Deposit Liabilities up by 23.69% to N8billion from N369.3billion in 2018 FY
  • Net loans grew by 13.76% from N2billion (2018 FY) to N286.9 billion (Q3 2019)
  • Total Asset increased by 25.70% to N7billion in Q3 2019 from N477.9billion in 2018 FY

 

Key Ratios

  • ROAE of 11.93% in Q3 2019 (Q3 2018; 7.83%)
  • ROAA of 1.07% in Q3 2019 (Q3 2018; 0.85%)
  • 99% NPL ratio (Q3 2018; 4.28%)
  • CAR is 14.78% (Q3 2018; 13.33%)

 

Operational Achievements

  • Fitch, GCR and Agusto re-affirm Wema’s National Long-term rating at (BBB-)
  • We have upgraded our core banking application and infrastructure to enhance customer service excellence across all banking channels
  • Our Agent banking network has increased to over 2,700, thus deepening our retail franchise and banking penetration.

 

Financial Performance Highlights

 

Below is the performance summary of the Bank.

 

Income statement (N’bn) Q3 2019 Q3 2018 (∆) (∆%)
Gross Earnings 64.15 48.99 15.16 30.95%
Interest Income 48.36 38.89 9.47 24.35%
Net Interest Income 17.22 15.82 1.40   8.85%
Non-interest income 15.79 10.10 5.69 56.34%
Operating expense 26.63 22.39 4.24 18.94%
Profit before Tax 4.76 3.06 1.70 55.56%
Profit after Tax 4.12 2.64 1.48 56.06%
Earnings Per Share 14.30kobo 9.20kobo 5.10 55.43%

 

Balance Sheet (N’bn) Q3 2019   FY 2018 (∆) (∆%)
Total Assets 600.7 477.9 122.8 25.70%
Loans and Advances 286.9 252.2 34.70 13.76%
Deposits 456.8 369.3 87.50 23.69%
Shareholders’ Funds 53.8 50.9 2.90 5.70%

 

Key Ratios (in %) Q3 2019 Q3 2018 (∆)
Return on Average Equity 11.93 7.83 3.95
Return on Average Asset 1.07 0.85 0.21
Yield on Asset 16.54 17.98 -1.44
Net Interest Margin 5.89 6.85 -0.96
Capital Adequacy Ratio 14.78 13.33 1.45
Liquidity Ratio 32.04 30.38 1.66
Loan-to-Deposit Ratio 60.46 63.91 -3.45
Non-Performing Loans Ratio 3.99 4.28 0.29
Cost to Income Ratio 84.84 85.39 0.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEMA Bank Plc, announces 40% growth in Profit Before Tax (PBT), increases dividend payment for the full year ended 31 December 2019 – FY 2019

LAGOS, NIGERIA – 22nd April 2020 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema’ or “the Bank”), announces its audited results for year ended 31st December 2019.

 

  • Total Asset growth of 46% to N715.87billion in FY 2019 (FY 2018: N488.80billion)
  • Non-Interest Income growth of 74% to N24.21billion in FY 2019 (FY 2018: N13.89billion)
  • Deposit growth of 56% (FY 2019: N577billion, FY 2018: N369billion)
  • Increases Dividend from 3kobo to 4kobo per share

Ademola Adebise, MD/CEO of Wema Bank Plc, commenting on the results, stated that:

“We are pleased to announce our 2019 financial year results. The results show that year on year, Wema Bank has continued its steady growth trajectory. The Bank recorded gross earnings of N94.89billion which was a 32.65% increase over the 2018 performance (FY 2018: N71.53billion). Profit before tax (PBT) was N6.76billion which represents a 40.83% growth over the N4.80billion reported in 2018 and profit after tax (PAT) was N5.20billion (N3.33billion in FY 2018).

 

The bank has continued to grow its deposit base, while also reducing its cost of funds. Deposits are up by 56.35% in the period (FY 2019: N577.28billion, FY 2018: N369.20billion). Loans and advances grew from N252.19billion in FY 2018 to N289.24billion in FY 2019, a y/y increase of 14.69%. The Bank has also increased its dividend payment from 3kobo per share to 4kobo per share translating to dividend yield of 8%.”

 

Ademola cautioned that, “while the results for 2019 showed very strong growth, the economic headwinds of the last few weeks has moderated our growth expectations for the next few months. It is expected that the economic and social impact of the Covid-19 virus will be far reaching. As a Bank we have also tried to play a role in supporting local and federal efforts in providing relief to those impacted directly and indirectly.

 

This “new normal” has necessitated massive adoption of technology across the economy and we are glad that we have stayed ahead of the curve and our previous technology investments have continued to yield results. ALAT, Nigeria’s First Fully Digital Bank, continues to record strong performance as adoption rates have grown and customer base is almost at the half a million mark. We plan to continue our growth in customer acquisition and retention despite the headwinds.”

– Ademola Adebise (MD/CEO)

Financial Performance Highlights for Full Year ended 31 December 2019

 

Income statement (N’bn) FY 2019 FY 2018 (∆)
Gross Earnings 94.89 71.53 32.65%
Net Interest Income 25.99 26.99 3.70%
Interest Income 70.68 57.63 22.64%
Non-interest income 24.21 13.89 74.24%
Operating Income 44.06 37.38 17.87%
Operating expense 37.30 32.58 14.50%
Profit before Tax 6.76 4.80 40.83%
Profit after Tax 5.20 3.33 56.16%
Earnings Per Share 13.50 kobo 8.60 kobo 56.98%

 

Balance Sheet (N’bn) FY 2019 FY 2018 (∆)
Total Assets 715.87 488.80 46.45%
Loans and Advances(net) 289.24 252.19 14.69%
Deposits 577.28 369.20 56.35%
Shareholders’ Funds 55.16 50.89 8.39%

 

Key Ratios (in %) FY 2019 FY 2018 (∆)
Return on Average Equity 12.26 9.43 2.83
Return on Average Asset 1.02 1.09 -0.07
Net Interest Margin 6.04 7.08 -1.04
Yield on Asset 16.47 17.75 -1.28
Capital Adequacy Ratio 13.59 18.01 -4.42
Liquidity Ratio 32.37 34.64 -2.27
Loan-to-Deposit Ratio 48.61 68.31 -19.70
Non-Performing Loans Ratio 7.38 4.98 2.40
Cost to Income Ratio 84.66 87.16 2.50

 

Financial Performance Review for Full Year ended 31, December 2019

 

  • Gross Earnings grew by 32.65% y/y to N94.89billion in the period (FY’ 2018: N71.53billion), on the back of 22.64% and a 74.24% growth in interest and non-interest income respectively.
  • Profit Before Tax (PBT) increased by 40.83% y/y to N6.76billion in 2019 from N4.80billion in FY 2018.
  • Profit After Tax (PAT) up by 56.16% to N5.20billion in FY 2019 (FY 2018: N3.33billion).
  • Non-Interest Income grew by 74.24% (from N13.89billion in FY 2018 to N24.21billion in FY’ 2019), drivers are 22.93% y/y growth in net fees and commission and 167.32% y/y growth in trading income.
  • Customer Deposit up by 56.35% (FY 2019: N577.28billions, FY 2018: N369.20billion).
  • Net Loans and Advances closed at N289.24billion an increase of 14.69% when compared to FY 2018 (FY 2018: N252.19billion).
  • Non-Performing Loans (NPL) up to 7.38% in FY 2019 from 4.98% in FY 2018.
  • Total Asset up y/y by 56.35% (FY 2019: N715.87billions, FY 2018: N488.80billion)
  • ROAE slightly up y/y to 12.26% from 9.55% in FY 2018
  • ROAA remained flat at 1.02% (FY 2018: 1.09%)

 

Operational Achievements

  • The bank retained its Investment grade ratings from Fitch, GCR and Agusto -National Long-term rating at (BBB-).
  • Opened new branches; Ojuelegba and Ikorodu 2, to better serve and to expand our customer base.
  • To deepen our retail franchise and banking penetration, our Agency Banking network has increased to 3,186 from 1,281 agents in FY 2018.
  • Successfully completed our technology upgrade without service disruption to customers

 

 

 

WEMA Bank Plc, proposes 3rd consecutive dividend payment and closes with N1trillion Balance sheet size; releases results for the full year ended 31 December 2020.

LAGOS, NIGERIA –21st April 2021 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema’ or “the Bank”), announces its audited results for year ended 31st December 2020.

 

The Chief Finance Officer, Tunde Mabawonku gave the following updates:

“The Bank weathered the disruptions of the 2020 Financial Year through a sharp focus on safe lending, keeping NPLs low and driving transaction income. The Bank remains resilient and has continued to grow its business in an efficient manner as we persist in adapting our strategy to yield strong financial results despite the adverse economic situation. 

The Bank recorded a y/y double-digit growth of 39.42% in Customer Deposit (FY 2020; N804.87billion, FY 2019; N577.28billion). Net Loans closed at N360.08billion, a growth of 24.49% (FY 2019; N289.24billion), as the bank continues to support its customers across multiple sectors of the economy. Non-Performing Loans (NPL) was pushed down to 4.70% y/y from 7.38% in FY 2019.  The Bank closed with Total Assets and Contingents of over N1trillion naira.

The bank has proposed a dividend of 4kobo per share in FY 2020 (FY 2019: 4kobo). This will be the 3rd straight year that the bank has paid dividends.

According to Mabawonku, “We have a clear strategy of becoming the “Most Dominant Digital Bank in Nigeria” by 2023.  We have positioned ALAT as the go-to platform by both increasing customer acquisition and working with eco-system partners on payments and settlements.

During the year, Wema Bank was ranked 2nd in the Retail Category and 6th in the SME category in the 2020 KPMG Customer Satisfaction Survey. The bank also received an award for the Best SME Bank of the Year for 2020 from BusinessDay, thus recognizing Wema Bank’s continuous support for small and medium scale businesses through loans, business advisory and innovative payments & collections support.

 

Financial Performance Highlights for Full Year ended 31 December 2020.

 

Income statement (N’bn) FY 2020 FY 2019 (%∆)
Gross Earnings 81.38 94.89 -14.24%
Net Interest Income 30.85 25.99 18.72%
Profit before Tax 5.93 6.76 -12.25%
Earnings Per Share 11.90 kobo 13.50 kobo -11.85%

 

Balance Sheet (N’bn) FY 2020 FY 2019 (%∆)
Total Assets 979.52 715.87 36.83%
Loans and Advances(net) 360.08 289.24 24.49%
Deposits 804.87 577.28 39.42%
Shareholders’ Funds 59.14 55.16 7.22%

 

Key Ratios (in %) FY 2020 FY 2019
Return on Average Equity 10.03 14.71
Return on Average Asset 0.61 1.02
Net Interest Margin 5.74 6.04
Yield on Asset 12.01 16.47
Capital Adequacy Ratio 15.05 13.60
Liquidity Ratio 31.04 32.37
Loan-to-Deposit Ratio 43.24 48.61
Non-Performing Loans Ratio 4.70 7.38
Cost to Income Ratio 85.89 84.66

 

Financial Performance Review for Full Year ended 31, December 2020.

 

Income Statement

  • Gross Earning of N81.38billion, a decline of 14.24% YoY (FY’2019 N94.89billion), driven by low interest rate environment on both fixed income and other financial instruments.
  • Profit Before Tax (PBT) of N5.93billion, a decline of 12.25% YoY from N6.76billion in FY 2019.
  • Non-Interest Income of N16.83billion, a decline of 30.48% (FY’2019; N24.21billion), drivers are drop in trading and foreign exchange income.

 

Statement of Financial Position

  • Customer Deposit Increased by 39.42% YTD to N804.87billion from N577.28billion in FY 2019.
  • Net Loans and Advances of N360.08billion, a YTD growth of 24.49% (FY 2019; N289.24billion).
  • Total Asset grew by 36.38% to N979.52billion (N715.87billion in FY 2019).