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)
– ENDS –
Financial Performance Highlights for Full Year ended 31 December 2019
|Income statement (N’bn)||FY 2019||FY 2018||(∆)|
|Net Interest Income||25.99||26.99||3.70%|
|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||(∆)|
|Loans and Advances(net)||289.24||252.19||14.69%|
|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|
|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 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 83% y/y to N6.76billion in 2019 from N4.80billion in FY 2018.
- Profit After Tax (PAT) up by 16% to N5.20billion in FY 2019 (FY 2018: N3.33billion).
- Non-Interest Income grew by 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 35% (FY 2019: N577.28billions, FY 2018: N369.20billion).
- Net Loans and Advances closed at N24billion an increase of 14.69% when compared to FY 2018 (FY 2018: N252.19billion).
- Non-Performing Loans (NPL) up to 38% in FY 2019 from 4.98% in FY 2018.
- Total Asset up y/y by 35% (FY 2019: N715.87billions, FY 2018: N488.80billion)
- ROAE slightly up y/y to 26% from 9.55% in FY 2018
- ROAA remained flat at 02% (FY 2018: 1.09%)
- 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