Wema Bank reports 38% increase in total assets to N979.52bn
By Kayode Tokede
…proposes 3rd consecutive dividend payment
Wema Bank Plc has reported 38 per cent increase in total Asset to N979.52billion in its audited result and accounts for full year ended December 31, 2020 from N715.87billion reported in 2019.
The lender on the Nigerian Exchange Limited (NGX) stated that the bank’s Customer Deposit Increased by 42 per cent to N804.87billion in 2020 from N577.28billion in 2019, while Net Loans and Advances of N360.08billion, gained 24.49 per cent (FY 2019; N289.24billion).
The management of the bank has proposed 3rd consecutive dividend payment and closes with N1trillion balance sheet size; releases results for the full year ended December 31, 2020.
The bank has proposed a dividend of 4kobo per share in FY 2020 (FY 2019: 4kobo). This will be the 3rd straight year that the bank has paid dividends.
From income statement, Wema bank’s Gross Earning gained 14.24 per cent to N38billion, a decline of 14.24 per cent from N94.89billion in 2020, driven by low-interest rate environment on both fixed income and other financial instruments.
Wema Bank reported Profit Before Tax (PBT) of N93billion, a decline of 12.25per cent from N6.76billion reported in 2019.
Non-Interest Income of N83billion, a decline of 30.48 per cent (FY’2019; N24.21billion), drivers are drop in trading and foreign exchange income.
The Chief Finance Officer, Wema Bank, Mr. Tunde Mabawonku in a statement said, “The Bank weathered the disruptions of the 2020 Financial Year through a sharp focus on safe lending, keeping NPLs low and driving transaction income.
“The Bank remains resilient and has continued to grow its business in an efficient manner as we persist in adapting our strategy to yield strong financial results despite the adverse economic situation.
“The Bank recorded a y/y double-digit growth of 39.42 per cent in Customer Deposit (2020; N804.87billion, 2019; N577.28billion).
“Net Loans closed at N360.08billion, a growth of 24.49 per cent (FY 2019; N289.24billion), as the bank continues to support its customers across multiple sectors of the economy. Non-Performing Loans (NPL) was pushed down to 4.70 per cent from 7.38per cent in FY 2019.
“The Bank closed with Total Assets and Contingents of over N1trillion.”
According to Mabawonku, “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.
During the year, Wema Bank was ranked 2nd in the Retail Category and 6th in the SME category in the 2020 KPMG Customer Satisfaction Survey. The bank also received an award for the Best SME Bank of the Year for 2020 from BusinessDay, thus recognizing Wema Bank’s continuous support for small and medium scale businesses through loans, business advisory and innovative payments & collections support.
