Wema Bank posts 51% growth in gross earnings to N95.354bn in Q3 2022
By Philemon Adedeji
Wema Bank has released its unaudited financial results for the period ended September 30th, 2022, reporting gross earnings which rose significantly by 51.17 per cent Year-on-Year to N95.354 billion in third quarter Q3 2022, from N63.077 billion recorded in third quarter Q3 2021, reflecting an increase in loans and advances and supported by a higher interest rate environment.
This was on the back of a high inflation environment and currency devaluation, which the economy continues to battle.
From the data submitted to the platform of Nigerian Exchange Limited (NGX), The group recorded strong growth in Profit Before Tax from N7.208 billion in nine months of 2021 to N9.457 billion in nine months of 2022, a growth of 31.2 per cent, while interest expenses grew by 79.65 per cent to N41.501 billion in 2022 from N23.100 billion in 2021.
Profit After Tax also increased Year-on-Year by 31 per cent to N8.19 billion in nine months of 2022 from N6.24 billion in nine months of 2021.
The Net interest income recorded for the period stood at N38.5 billion in nine months of 2022, from N28.5 billion in nine months of 2021, reflecting a marginal difference of 35.1 per cent.
Nigeria’s inflation rate hit a new 17-year high of 20.77 per cent in September 2022. Nigeria’s inflation rate surged to 20.77 per cent in September 2022, up from 20.52 per cent in the previous month.
Interest income grew by 57 per cent Y-o-Y, benefitting from strong loan growth and a higher yield environment to N78.48 billion,from N50.04 billion in 2021. As non-interest income grew by a decent 33 per cent to 15.38 billion in Q3 2022 from N11.57 billion in Q3 2021.
Net fee and commission income grew to N12.015 billion in the third quarter of 2022 from N8.722 billion in 2021 on the back of a rise in credit-related fees and income, electronic banking income, and trade transaction income amongst others.
Operating expenses grew by 32 per cent to N42.26 billion in nine months of 2022 from N31.96 billion in nine months of 2021.
Income tax expense grew by 31 per cent to N1.277 billion from N974 million the previous year.
The bank grew its deposit year to date by 16 per cent as at nine months of 2022 to N1,079.58 billion from N927.47 billion reported in FY 2021. Loans and Advances to customers rose by 10 per cent to N461.92 billion in nine months of 2022 from N419 billion in FY 2021.
The group grew it’s balance sheet nearly 15 per cent to N1,335.6 trillion in nine months of 2022 from N1,164.52 in FY 2021, while Shareholder’s fund stood at N75.46 billion in nine months of 2022 from N70.36 billion in FY 2021, representing an increase of seven per cent.
Commenting on the result, the Managing Director, Chief Executive Officer of the bank, Mr. Ademola Adebise said,“the impressive results are built around three core areas; strong management of our credit exposures despite a difficult economic and regulatory landscape; increased customer acquisition and wallet share of those customers and a stronger focus on the corporate and SME segments. We expect the bottom line to improve even further in the final quarter of the year.”
Also speaking on the result, the bank’s Chief Finance Officer, Mr. Tunde Mabawonku, explained that the bank’s continuous investment in digital assets is a contributing factor to the strong performance in the last quarter.
“It has been a good 9 months with our earnings growing by 52 per cent year on year and earnings per share at 84.9kobo.
“This performance is a result of our ability to translate our digital play in two ways. One, by making ourselves the key partner for FinTechs in the country, and secondly by improving customer satisfaction through improved services and features on our digital platforms.
“In addition, we have managed to navigate the turbulent economic and regulatory spaces with a strong focus on cost management and reduction while also driving business in attractive sectors,”he said .
