Wema Bank announces135.8% growth in PBT in Q3

…As Unity Bank records 23% profit rise

Wema   Bank Plc has announced its unaudited nine-month 2021 financial results, showing an increase of 135.8 per cent in profit before tax (PBT) to close the quarter at N7.2 billion.

This is also as Nigerian lender, Unity Bank Plc has declared gross earnings of N36.18 billion for the nine-month period ended September 30, 2021, and a 23 per cent  growth of  Profit After Tax (PAT) totaling N1.94 billion for the same period.

The Wema Bank result, according to the lender, follows a Year-on-Year growth of 9.1 per cent in gross earnings to ₦63.1 billion in nine months 2021 from ₦57.8 billion in nine months 2020.

Deposit liabilities grew by 9.3 per cent to 879.8 billion in nine months 2021 from ₦804.9 billion in FY2020 while total asset  increased by 10.7 per cent  to ₦1.08 trillion  in nine months 2021 from ₦979.5 billion in financial year (FY) 2020.

Commenting on the results, the Chief Finance Office,r Mr Tunde Mabawonku said, “We are delighted to announce the bank’s nine-month 2021 results which show strong growth in key financial metrics despite the challenging macro economic environment arising from  heightened inflation, supply chain disruptions, and the continued pass through impact of the COVID-19 pandemic

“The numbers show the bank continues to grow and improve its market share. We have now comfortably crossed the N1 trillion mark  in total assets and have a share of close to three percent of industry deposits”.


“We have also unveiled our new mssion and vision statements which align to our strategy. We want to be the dominant digital platform in Africa delivering seamless   financial services. This plan started  with  the  launch  of ALAT a few years ago and  is now being accelerated in the last few months.

“We are sure to conclude the year with an even stronger performance, even as we continue to focus on our digital business which is a key boost for customer acquisition, consumer lending, and transaction volumes while not neglecting our corporate and commercial play.

“On our commercial business, we will continue our aggressive strategy to improve our commercial lending business alongside trade and other revenue lines”, Mabawonku said.

Similarly, a review of Unity Bank’s  unaudited results for the third Quarter of 2021 released to the Nigerian Exchange Group Limited showed that the bank’s gross earnings of N36.18 billion represents a moderate seven per cent growth from N33.9 billion recorded in the same period in 2020.

Also, with the strong performance recorded during the period under review buoyed by a 31 per cent growth in its loan book to N265.32 billion from N202.08 billion recorded in 2020, the lender also grew its asset base by 17 per cent to N574.56 billion from N492.02 billion recorded in December 2020.

The bank’s Profit Before Tax for the period under review grew by 23 per cent to N2.11 billion from N1.71 billion in the corresponding period in 2020.

This sterling performance, according to a statement from the bank, comes amid fragile recovery and volatilities in the operating environment and key macroeconomic indicators following the global COVID-19 pandemic, weak market sentiments and inflationary trends, as well as tough regulatory headwinds that have impacted severely on economic activities.

The lender also substantially grew its net interest income to N14.63 biillion from N12.67 billion in the same period in 2020; creating a 15 per cent uptick from the value of the bank’s rising loan portfolio and an improvement in its transaction banking activities with its customers, achieved through excellent service delivery.

Commenting on the result, Unity Bank’s Managing Director/CEO, Mrs. Tomi Somefun expressed satisfaction with the performance indices of the Q3/2021 financials. Particularly inspiring are the growing loan book and quality of assets (31per cent growth), cash and balances with the CBN (24 per cent growth) and PBT (23 per cent growth), altogether adding to the consecutive growth of the balance sheet in the last couple of years.

In her overall assessment, she stated that “the market is increasingly beginning to see the efforts in the strategic refocusing of our business and diversification of our earnings base which is translating into tangible results even as we strive to meet the expectations of our esteemed customers and cherished stakeholders.

“In addition, she said that while the Bank’s focus on agribusiness has provided both brand and business benefits while the institution has also made significant investment in the development of the retail market in order to grow its market share in various target segments by scaling up operations in the niche market.”

Somefun also stated that the Bank shall remain dynamic by embracing current and emerging market trends in technology, effectively targeting the youth market, driving financial inclusion in the women segment, developing robust product marketing to create value through a focus on digital strategies to facilitate transaction and e-banking channels.

Looking ahead, Mrs. Somefun stated, “We are optimistic that nothing will threaten to upend the current COVID-19 recovery, especially as the Bank is poised towards building an increased momentum to ride the wave of the economic headwinds, even as the growing inflationary pressures and the soaring energy prices still remain a concern.

According to the Unity Bank’s boss, “Ours is a continuous balancing act and revolutionary performance towards repositioning the business nationwide via tapping into emerging opportunities across the banking space, including the digital financial services spheres”.

 

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