Wema Bank Records 14.24% and 12.25% Drop in Gross Earnings and Profit in 2020

By
Esan Bolaji
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Wema Bank Receives Shareholder Approval To Raise N40 Billion
Wema Bank Receives Shareholder Approval To Raise N40 Billion

Wema Bank PLC 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 (FY’2019 N94.89billion), driven by a low-interest-rate environment on both fixed income and other financial instruments.

Key Financial Performance

Income Statement

  • Profit Before Tax (PBT) of N93billion, a decline of 12.25% YoY from N6.76billion in FY 2019.
  • Non-Interest Income of N83billion, a decline of 30.48% (FY’2019; 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% in Customer Deposit (FY 2020; N804.87billion, FY 2019; N577.28billion).
  • Net Loans closed at N360.08billion, a growth of 24.49% (FY 2019; N289.24billion), as the bank continues to support its customers across multiple sectors of the economy.
  • Total Asset grew by 38% to N979.52billion (N715.87billion in FY 2019).

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.

Wema Bank Records 14.24% and 12.25% Drop in Gross Earnings and Profit in 2020 Brand Spur

The Chief Finance Officer, Tunde Mabawonku gave the following updates:

“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”.

Tunde-Mabawonku Brand spur Wema Bank Records 14.24% and 12.25% Drop in Gross Earnings and Profit in 2020
Chief Finance Officer, Tunde Mabawonku | Brand Spur Nigeria

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.