Wema Bank Plc has announced its full year 2023 audited financial statement, which showed a profit before tax growth of 196 percent from N14.75 billion to N43.59 billion.
The bank proposed dividend per share of 50kobo, up from 30kobo in 2022 and recorded deposit growth of 60 percent to N1,860.57 billion from N1,165.93 billion reported in financial year (FY) 2022.
Further breakdown of the results show Return on Equity (ROAE) rising by 39.28 percent, while Non Performing Loan (NPL) stood at 4.31 percent.
According to the financial statements, Wema Bank reported gross earnings of N226.915 billion, a 71.51 percent increase from the N132.301 billion reported in the previous year.
A significant portion of this revenue was from interest income, which constituted about 82 percent of the gross earnings.
The bank recorded 71.83 growth in interest income to N185.643 billion year-on-year (YoY).
It saw interest expense at N93.922 billion, leaving net interest income at N91.721 billion, representing 69.13 percent YoY.
Its impairment for credit losses was N10.563 billion with net interest income after credit losses printing at N81.158 billion.
It recorded N13.603 billion FX revaluation gain and operating income of N122.429 billion, representing 64.37 percent YoY.
Other highlights include profit for the period, N35.989 billion; earnings per share, N2.79; loans and advances to customers, N801.103 billion, a 53.64 percent growth YoY; cash and cash equivalents, N220.234 billion and total assets, N2.248 trillion.
Its N40 billion first tranche of capital raise is awaiting final regulatory approvals, while the bank grew customers’ deposits to N1.861 trillion, which is a 59.59 percent increase YoY.
Commenting on the results, the MD/CEO, Mr Moruf Oseni, said, “2023 showcased a revitalised Wema Bank as evidenced by the considerable improvements in our numbers. The performance is headlined by impressive improvements in profit before tax, which grew strongly by 196 percent. The growth of gross earnings by 72 percent and earnings per share at 279.5kobo shows the core improvements to our balance sheet. In addition, our cost-to-income ratio at 64.37 percent has witnessed significant improvement from the previous period.
“We also completed our N40 billion capital raise exercise (results awaiting final verification by regulators). This exercise actively positioned us for the new capital licensing requirements of the Central Bank of Nigeria. Wema Bank will accelerate its capital management plans and ensure we embark on the journey to raise the required capital as quickly as possible.”
Oseni added that the bank will be proposing a dividend per share of 50kobo to its shareholders at the next Annual General Meeting. This is in line with the bank’s capital conservation strategy and to ensure that it continues to provide returns to its shareholders in anticipation of additional capital raises scheduled for later this year.
According to Oseni, “We are satisfied with the bank’s performance in the first year of the new leadership team, as we move in a strong growth trajectory. Our target remains clear; we want to become a top-tier bank in the industry powered by digital excellence. We have carved a niche for ourselves with ALAT as a retail platform, but we are now positioning the enterprise as the intelligent platform for all financial services. We have partnered with the Federal Government on upskilling two million MSMEs, provided engagement platforms for all NYSC members and now implementing partnerships in health, education, women empowerment and in the green economy.
“In the months ahead, we would be developing platforms and supporting initiatives that prioritise the needs of our customers, leveraging technology in solving problems across all sectors.”
The growth in pre-tax profit can be attributed primarily to growth in interest income due to increased interest rates. Interest income constitutes about 82 percent of the gross earnings.
The balance sheet also showed improvement. Total assets grew by 55.9 percent to N2.248 billion, driven by growth in loans and advances to customers and significant growth.
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