WEMA Bank Plc proposes 3rdÂ consecutive dividend payment and closes with N1trillion Balance sheet size; releases results forÂ the full year ended 31 December 2020.
26thÂ April 2021 âÂ Wema Bank PLC announces its audited results for the year ended 31stÂ December 2020.
The Chief Finance Officer, Tunde Mabawonku gave the following updates:
âThe 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 ofÂ 39.42%Â in Customer Deposit (FY 2020; N804.87billion, FY 2019; N577.28billion).Â Net Loans closed atÂ N360.08billion,Â a growth ofÂ 24.49% (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 toÂ 4.70%Â y/y fromÂ 7.38%Â in FY 2019. Â The Bank closed with Total Assets and Contingents of over N1trillion naira.
The bank has proposed a dividend ofÂ 4koboÂ per shareÂ in FY 2020Â (FY 2019: 4kobo). This will be the 3rdÂ straight year that the bank has paid dividends.
According to Mabawonku, âWe have a clear strategy of becoming the âMost Dominant Digital Bank in Nigeriaâ by 2023.Â Â 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 Bankâs continuous support for small and medium scale businesses through loans, business advisory and innovative payments & collections support.
Financial Performance Highlights for Full Year ended 31 December 2020.
|Income statement (Nâbn)||FY 2020||FY 2019||(%â)|
|Net Interest Income||30.85||25.99||18.72%|
|Profit before Tax||5.93||6.76||-12.25%|
|Earnings Per Share||11.90 kobo||13.50 kobo||-11.85%|
|Balance Sheet (Nâbn)||FY 2020||FY 2019||(%â)|
|Loans and Advances(net)||360.08||289.24||24.49%|
|Key Ratios (in %)||FY 2020||FY 2019|
|Return on Average Equity||10.03||14.71|
|Return on Average Asset||0.61||1.02|
|Net Interest Margin||5.74||6.04|
|Yield on Asset||12.01||16.47|
|Capital Adequacy Ratio||15.05||13.60|
|Non-Performing Loans Ratio||4.70||7.38|
|Cost to Income Ratio||85.89||84.66|
Financial Performance Review for Full Year ended 31, December 2020.
- Gross Earning ofÂ N38billion, a decline ofÂ 14.24%Â YoY (FYâ2019Â N94.89billion), driven by a low-interest-rate environment on both fixed income and other financial instruments.
- Profit Before Tax (PBT) ofÂ N93billion, a decline ofÂ 12.25%Â YoY fromÂ N6.76billion in FY 2019.
- Non-Interest Income ofÂ N83billion,Â a decline ofÂ 30.48%Â (FYâ2019;Â N24.21billion), drivers are drop in trading and foreign exchange income.
Statement of Financial Position
- Customer Deposit Increased byÂ 42%Â YTD toÂ N804.87billionÂ fromÂ N577.28billionÂ in FY 2019.
- Net Loans and Advances ofÂ N08billion,Â a YTD growth ofÂ 24.49%Â (FY 2019;Â N289.24billion).
- Total Asset grew byÂ 38%Â toÂ N979.52billionÂ (N715.87billionÂ in FY 2019).