Wema Bank Grows Profit by 56% in 2019

• Wema Bank Grows Profit by 56% in 2019

Wema Bank Plc grew profit by 56.16 percent in the financial year ended December 31, 2019.

In the audited financial statements released on the Nigerian Stock Exchange website, the lender profit after tax grew by 56.16 percent from N3.33 billion in 2018 to N5.2 billion in 2019.

Similarly, the banks’ profit before tax expanded by 40.83 percent year-on-year to N6.76 billion in 2019, up from N4.8 billion in 2018. Also, the lender’s non-interest income grew by 74.24 percent to N24.21 billion in 2019, up from N13.89 billion.

The bank’s attributed the surge in non-interest income to 22.93 percent growth recorded in net fees and commission and 167.32 percent increase achieved in trading income.

Customers’ deposits rose by 56.35 percent in 2019 from N369.20 billion in 2018 to N577.28 billion in 2019, while net loans and advances grew by 14.69 percent from N252.19 billion achieved in 2018 to N289.24 billion.

Non-performing loans rose 7.38 percent in 2019, up from 4.98 percent recorded in 2018. Wema bank total assets surged by 56.35 percent in the year under review.

Speaking on the results, Ademola Adebise, the bank’s Managing Director/Chief Executive Officer, said: “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 N94.89 billion which was a 32.65 per cent increase over the 2018 performance of N71.53 billion.

“The bank has continued to grow its deposit base, while also reducing its cost of funds. Deposits are up by 56.35 per cent in the period. Loans and advances grew from N252.19 billion in 2018 to N289.24 billion in full year 2019, a year-on-year increase of 14.69 per cent.

“The bank has also increased its dividend payment from three kobo per share to four kobo per share translating to dividend yield of eight per cent.”

Ademola, however, 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.

According to Ademola, “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.”