COVID-19 Plunges Wema Bank Profit by 35.45 Percent in Nine Months

Wema Bank Plc, one of the leading indigenous banks, announced a 35.45 percent decline in profit after tax in the nine months ended September 30, 2020.

In the unaudited financial statements released on Wednesday, the lender’s gross revenue declined by 10.79 percent to N57.83 billion in the period under review, down from N64.83 billion posted in the corresponding period of 2019.

Profit after tax declined by 35.45 percent from N4.09 billion recorded in the same period of 2019 to N2.64 billion in the first nine months of 2020.

Speaking on the performance, Mr. Ademola Adebise, the Managing Director/Chief Executive Officer, Wema Bank said: “We are pleased that our performance has improved significantly on the back of increased economic activities across the country; we recorded a better 3rd quarter compared to the 2nd quarter though average numbers still slightly below their 2019 peak volumes. For the 9months ended September 30, 2020, the Bank recorded gross earnings of N57.83billion and Profit Before Tax (PBT) of N3.06billion.

“Customer Deposit closed at N701.84billion, representing a 21.58% year-to-date (YTD) growth. Despite the tough regulatory regime on cash reserve ratio (CRR), Wema Bank continues to support various sectors of the economy as witnessed in the 24.39% growth in loans to N359.8billion.

Commenting on the impact of COVID-19 on the bank’s overall performance, he said the bank played an important role in supporting local, state and federal efforts in providing relief to those impacted directly and indirectly. Also, he said the lender support customers through suspension of loan repayment for SMEs, customized loan extension and moratorium.

“To help in the rebuilding and healing process from the effect of the recent #EndSARS protest, Wema Bank has reached out to all its customers to not only empathize but work with them to create tailored solutions to enable them get their business back on track.

“The pace of Digital adoption and automation has accelerated across the country and indeed the globe in the light of the COVID-19 Pandemic and we are pleased as a Bank to have been ahead of the curve with ALAT, Nigeria’s First Fully Digital Bank. In the last quarter, we upgraded to ALAT 4.0 with a whole new personalized experience, thus allowing our customers to do much more with ALAT. Our focus for the next three years is to continue to transit ALAT and the larger Bank to becoming the “Dominant digital banking platform” in Nigeria and we are confident that we can achieve this feat.”

The bank MD explained that “during the last quarter, the Bank further strengthened its governance structures with changes on the Board. The Bank appointed Mr. Oluwole Ajimisinmi as an Executive Director and also appointed an Independent Non-Executive Director – Mrs Ibiye Ekong.

“2020 has been one of the most challenging years in recent history but the Bank remains resilient and has committed to keep delivering value added services to its customers and stakeholders as it has done over the last 75 years. The Bank expects to close the year in line with targets and expectations.”