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

 

 

 

Posted in Investor Press Release.