Wema Bank Posts Strong Growth in Q3, Grows Profit by 136 Percent

Wema Bank Plc, Nigeria’s innovative and value-driven bank, grew profit after tax by 135.8 percent to N6.235 billion in the nine months ended September 30, 2021, up from N2.645 in the same period of 2020.

In the bank’s unaudited financial statement filed with the Nigerian Exchange Limited and seen by Investors King, the lender realised N63.077 billion in gross earnings, a 9.1 percent increase from N57.825 billion recorded during the peak of COVID-19 in 2020.

Interest income also expanded from N46.396 billion in 2020 to N51.550 billion in 2021. While interest expense moderated by 12.15 percent to N23.101 billion in 2021 from N26.297 billion in 2020 to bolster net interest income to N28.449 billion in the period under review.

Similarly, net impairment loss on financial assets improved to N811.162 million, down from N1.866 billion posted in 2020. Therefore, net interest income after impairment charge for credit closses rose to N27.638 billion in 2021 from N18.232 billion in 2020.

Operating income stood at N39.165 billion in 2021, higher than the N29.662 billion filed in 2020. Despite personnel expenses rising to N12.382 billion and other operating expenses hitting N17.088 billion, profit before tax still rose from N3.057 billion in 2020 to N7.209 billion in 2021.

Unity Bank more than doubles its income tax, paying N973.857 million in 2021, up from N412.862 million in 2020.

Commenting on the bank’s performance, the Chief Finance Officer, Mr Tunde Mabawonku, said, “We are delighted to announce the bank’s 9M 2021 results, which shows strong growth in key financial metrics despite the challenging macro-economic environment arising from heightened inflation, supply chain disruptions and the continued pass-through impact of the COVID-19 pandemic.

“The numbers show the bank continues to grow and improve its market share. We have now comfortably crossed the N1tn mark in total assets and have a share of close to three percent of industry deposits.”

Mabawonku further said, “The key measure of success for us is growth in customer numbers and customer activity – and we are glad that we are reporting strong growth here.”

The bank’s total assets grew by 10.7 percent to N1.08 trillion in 2021 from N979.5 billion in 2020, indicating that the bank has fully rebounded from COVID-19 damages.

Wema Bank grew earnings per share by 135 percent to N21.6 9.2 in 2021 from N9.2 in 2020.