Category Archives: Investor Press Release

FINANCIAL RESULTS FOR THE PERIOD ENDED 31st OF DECEMBER 2022

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FINANCIAL RESULTS FOR THE PERIOD ENDED 31st OF DECEMBER 2022

 

WEMA Bank Plc. Reports Gross Earnings of ₦131.1 billion, up 42.3% y-o-y, declares dividend of 30kobo per share.

 

 

LAGOS, NIGERIA – March 31st, 2023 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema’ or “the Bank”), announces its Audited results for Q4 ended 31st December 2022.

 

The bank recorded Gross Earnings of ₦131.08bn, a y/y increase of 42% (FY 2021: ₦92.14bn). Interest Income up 44.7% y/y to ₦106.07bn (FY 2021: ₦73.30bn). Non-Interest Income up 32.8% y/y to ₦25.01bn (FY 2021: ₦18.83bn). Profit before Tax (PBT) was ₦14.74bn a y/y increase of 19.1% over the ₦12.38bn reported in FY 2021. Profit after Tax (PAT) also increased y/y by 25.5% to ₦11.21bn (₦8.93bn in FY  2021). 

 

The bank grew its deposit year to date by 26% as at FY 2022 to ₦1,165.93bn from ₦927.47bn reported in FY 2021. Loans and Advances rose by 24% to ₦521.43bn in FY 2022 from ₦418.86bn in FY, 2021.

 

Income statement (N’bn) FY 2022 FY 2021 (∆)
Gross Earnings 131.08 92.14 42.3%
Net Interest Income 54.07 39.87 35.6%
Interest Income 106.06 73.30 44.7%
Non-interest income 25.01 18.83 32.8%
Operating Income 74.28 56.60 31%
Operating expense 59.53 44.22 35%
Profit before Tax 14.74 12.38 19%
     
Balance Sheet (N’bn) FY 2022 FY 2021 (∆)
Total Assets 1,433.70 1,164.52 23%
Loans and Advances

(net)

 521.43 418.86 24%
Total Deposits 1,165.93 927.47 26%
Shareholder’s Funds 82.62 70.36 17%
     
Ratio (%) FY 2022 FY 2021 (∆)
Return on Average

Equity

 19.28 17.26 12%
Return on Average

Asset

 1.14 1.16 2%
Net Interest Margin 6.73 6.18 9%
Yield on Asset 16.32 14.29 14%

 

Commenting on the result, the Managing Director/Chief Executive Officer of the Bank, Mr. Moruf Oseni said,

 

‘Our 2022 results show the result of the careful execution of our medium-term strategy as we have deliberately focused on deepening our offerings to the corporate, commercial, and retail segments of the market using our digital channels while ensuring best-in-class customer experience platforms deliver improvements across all customer touchpoints. We expect the bottom line to improve even further in 2023.

 

Also speaking on the result, the Bank’s Chief Finance Officer, Mr. Tunde Mabawonku, explained that the bank’s continuous investment in the digital space has positioned it as one of the leaders in providing digital banking services to individuals and corporates across the country.

 

“It has been a good full-year performance for Wema Bank with gross earnings growing by 42.3% year on year and earnings per share at 87.2kobo,” Mabawonku said.

 

“We have also succeeded in making Wema Bank an integral part of the Fintech ecosystem in the country with our ubiquitous fintech infrastructure support play”.

 

 

For further information, please contact:

Wema Bank Investor Relations

Investor.relations@wemabank.com

+234 (01) 2778600

 

Tunde Mabawonku

Executive Director (CFO)

Tunde.Mabawonku@Wemabank.com

 

Femi Akinfolarin

Head Strategy and Investor Relations

femi.akinfolarin@wemabank.com

+234 8134527279

 

 

 

Wema Bank’s Webinar to Share Strategies of Growth for Tech Start-ups and SMEs in Nigeria

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Wema Bank, Nigeria’s most innovative bank, has announced that the next edition of its quarterly webinar, aimed at assisting the small and medium-scale enterprise (SME) and early-stage start-up segments of its customer base, will hold on Friday, 21 October, 2022 by 10 a.m.

 

Arthur Nkemeh, Head of SME Banking at Wema Bank said the webinar, themed, “From Start-up to Unicorn: Strategies for Sustainably Scaling a Tech Company in Nigeria,” will focus on the strategies that start-ups and SMEs in the tech space in Nigeria can adopt to develop the capacity needed to withstand the challenges facing the tech industry around the world.

 

“We have seen many tech companies in Nigeria and around the world struggle to raise funds, lay off their employees and slash their workers’ salaries in recent times. We want to utilize this webinar to share insights with the tech start-up and SME community in Nigeria on the strategies that they can adopt to navigate these challenges and build structures that will ensure that they will continue to grow.”

 

He further said that the October webinar will address some of the biggest challenges facing the tech start-ups and tech-enabled SMEs in the country – such as managerial capacity, talent acquisition and retention, access to credit and partnerships, among others – and find the right path to profitability.

 

“The year 2022 has been very challenging for many tech companies, not just in Nigeria, but around the world. However, we have seen, with the success being recorded by some tech companies within and outside Nigeria, that most of the challenges facing this sector are surmountable if the companies are given the right boost. The webinar will avail tech startups and tech-oriented SMEs ups with the tools that they need to grow.”

 

Nkemeh informed that Ashim Egunjobi, Managing Partner of Octerra Capital; Oluwole Oyeniran, Enterprise Technology and Performance Leader and TMT Leader for Deloitte in West Africa; and Eyitayo Ogunmola, founder and CEO of Utiva, have been confirmed as guest speakers at the webinar.

 

The Head of SME Banking at Wema Bank noted that Wema Bank’s quarterly SME Webinar series, which is aimed at facilitating the growth of the SME and early-stage startup sectors in Nigeria, is borne out of the bank’s understanding of the role these sectors play in the Nigerian economy and the immense potentials that they hold.

 

“According the Nigerian Bureau of Statistics (NBS), the MSMEs sector has over 37 million MSMEs, employs over 54 million skilled and unskilled labour and contributes about 54 percent to GDP of the country. Tech start-ups, on the other hand, have been at the forefront of innovation across various sectors in the country. Wema Bank sees these contributions as cogent and makes these start-ups and SMEs worthy of all the support they can get. The quarterly webinar series is one of the ways Wema Bank demonstrates its support to the growth of these all-important businesses,” Nkemeh concluded.

 

FINANCIAL RESULTS FOR THE PERIOD ENDED 30th SEPTEMBER 2022

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WEMA Bank Plc. Reports Gross Earnings of N93.85bn, a 52% growth rate For The 9 Months Ended 30th September 2022.

 

LAGOS, NIGERIA – October 28, 2022 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema’ or “the Bank”), announces its unaudited results for the 9 months ended 30th September 2022.

 

The bank recorded Gross Earnings of ₦93.85bn, a y/y increase of 52% (9m 2021: ₦61.57bn). Interest Income up 57% y/y to ₦78.48bn (9m 2021: ₦50.04bn). Non-Interest Income up 33% y/y to ₦15.38bn (9m 2021: ₦11.57bn). Profit before Tax (PBT) was ₦9.46bn a y/y increase of 31% over the ₦7.21bn reported in 9m 2021. Profit after Tax (PAT) also increased y/y by 31% to ₦8.19bn (₦6.24bn in 9m 2021).

 

The bank grew its deposit year to date by 16% as at 9m’ 2022 to ₦1,079.58bn from ₦927.47bn reported in FY 2021. Loans and Advances rose by 10% to ₦461.92bn in 9m’2022 from ₦419bn in FY, 2021.

 

Income statement (N’bn) 9m 2022 9m 2021 (∆)
Gross Earnings 93.85 61.57 52%
Net Interest Income 38.47 28.46 35%
Interest Income 78.48 50.04 57%
Non-interest income 15.38 11.57 33%
Operating Income 51.72 39.17 32%
Operating expense 42.26 31.96 32%
Profit before Tax 9.46 7.21 31%
     
Balance Sheet (N’bn) 9m 2022 FY 2021 (∆)
Total Assets 1,335.36 1,164.52 15%
Loans and Advances

(net)

 461.92 418.86 10%
Total Deposits 1,079.58 927.47 16%
Shareholder’s Funds 75.46 70.36 7%
     
Ratio (%) 9m 2022 9m 2021 (∆)
Return on Average

Equity

 17.31 15.04 15%
Return on Average

Asset

 1.01 0.90 12%
Net Interest Margin 6.57 6.37 3%
Yield on Asset 16.33 11.20 46%

 

Commenting on the result, the Managing Director, Chief Executive Officer of the bank, Mr. Ademola Adebise said,

 

‘The impressive results are built around three core areas; strong management of our credit exposures despite a difficult economic and regulatory landscape; increased customer acquisition and wallet share of those customers and a stronger focus on the corporate and SME segments. We expect the bottom line to improve even further in the final quarter of the year.

 

Also speaking on the result, the bank’s Chief Finance Officer, Mr. Tunde Mabawonku, explained that the bank’s continuous investment in digital assets is a contributing factor to the strong performance in the last quarter.

 

“It has been a good 9 months with our earnings growing by 52% year on year and earnings per share at 84.9kobo,” Mabawonku said.

 

“This performance is a result of our ability to translate our digital play in two ways. One, by making ourselves the key partner for FinTechs in the country, and secondly by improving customer satisfaction through improved services and features on our digital platforms. ‘In addition, we have managed to navigate the turbulent economic and regulatory spaces with a strong focus on cost management and reduction while also driving business in attractive sectors.

 

[END]

 

 

For further information, please contact:

Wema Bank Investor Relations

Investor.relations@wemabank.com

+234 (01) 2778600

 

Download this document HERE 

WEMA Bank Plc Reports Gross Earnings of N59.59bn

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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

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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

 

Click here to download full press release. 

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

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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

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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.

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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.

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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