Wema Bank PLCÂ announces its audited results for the year ended 31st December 2020.
From the released result, the lender’s gross earning of N38billion saw a decline of 14.24% year-on-year (FYâ2019 N94.89billion), driven by a low-interest-rate environment on both fixed income and other financial instruments.
Key Financial Performance
- 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
- Wema Bank recorded a year-on-year double-digit growth of 39.42%Â in Customer Deposit (FY 2020; N804.87billion, FY 2019; N577.28billion).
- 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.
- Total Asset grew byÂ 38%Â toÂ N979.52billionÂ (N715.87billion in FY 2019).
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.
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 situationâ.
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.