Wema Bank Plc Profit Declines to N4.6 Billion in 2020

Wema Bank Plc, a leading financial institution in Nigeria, reported a N4.57 billion profit after tax for the financial year ended December 31, 2020.

In the audited financial statements of the bank, the amount was lower than the N5.2 billion recorded in 2019.

The bank gross earnings stood at N81.38 billion in the year under review, down from N94.89 billion filed in the corresponding year of 2019.

Net interest income grew from N25.98 billion in 2019 to N30.85 billion in 2020, while net interest income after impairment charge for credit losses expanded from N19.86 billion in 2019 to N25.21 billion in 2020.

The lender recorded an operating income of N42.04 billion in the year under review, down from N44.06 billion in 2019.

Profit before tax moderated from N6.76 billion in 2019 to N5.9 billion in 2020.

The bank paid N1.35 billion as income tax expense, below the N1.56 billion paid in 2019.

Customer deposits rose by 39.42 percent from N577.28 billion in 2019 to N804.87 billion in 2020. Similarly, net loans grew by 24.49 percent from N289.24 billion in 2019 to N360.08 billion in 2020.

Speaking on the performance, the Chief Finance Officer of the bank, Tunde Mabawonku said “We have a clear strategy of becoming the ‘Most Dominant Digital Bank in Nigeria’ by 2023. We have positioned ALAT as the go-to platform by both increasing customer acquisition and working with eco-system partners on payments and settlements.”

Wema Bank declared a final dividend of 4 kobo per ordinary share for the period ended December 31, 2020.