Wema Bank’s profit increases by 41.5% to N12.6 billion in 2022

The financial statement by Wema Bank Plc has revealed a profit of N12.6 billion for the year 2022. The amount is 41.5% higher than the N8.8 billion in the previous year.

The company raked in N129 billion gross profit for the period from the N93 billion it saw in 2021.

Interest income stood at N104 billion in 2022 compared to N74 billion filed in 2021. Loans and advances to customers rose to N82 billion in 2022 from N64 billion the previous year. Included in interest income on loans and advances, however, is modification loss of N600 million for the group and bank.

It represents the changes in gross carrying amount of the financial asset from immediately before to immediately after modification. The modifications were not as a result of credit deterioration.

Interest expenses also increased for the period to N53 billion from N34 billion led by deposits from customers which improved to N45 billion for the period compared to the N27 billion the previous year as the net interest income amounted to N51 billion from N39 billion in 2022.

The net fee and commission income was N16 billion for the period compared to N13 billion in the previous year as other fees and charges spiked for the period.

Net trading income was up to N4 billion from N1.6 billion as the bank made gains on fixed income securities, treasury bills and foreign exchange trading. Foreign exchange trading income is principally made up of trading income on foreign currencies, as well as gains and losses from revaluation of trading position. The amount reported are totally from financial assets carried at fair value through profit or loss.

Other income however declined to N2.9 billion from N3.3 billion in the previous year. This is as the bank decline in FX revaluation, service charge and others. Also the operating  Income valued N74 billion in 2022 from N57 billion in 2021.