Profit statements

Wema Bank impresses with 42% increase in half-year profit

By Dipo Olowookere

The first six months of 2022 have been very good for Wema Bank despite the difficult operating environment caused by inflationary pressures, high energy costs, foreign exchange (FX) crisis and others.

The lender, which prides itself on pioneering Africa’s first all-digital bank, has shown resilience, affirming the effectiveness of the strategies deployed by the management team led by Mr. Ademola Adebise.

A look at the company’s financial results for the period ended June 30, 2022 showed that Wema Bank recorded double-digit growth in both revenue and accounting statement earnings.

In the reporting period, pre-tax profit increased by 43% to N6.13 billion from N4.30 billion in the same period last year, while after-tax profit surged by 42% to reach N5.30 billion. of 3.72 billion naira in the first half of 2021.

In the first half of the year, the financial institution increased its gross revenue by 50% from N39.8 billion to N59.6 billion as interest income jumped by 55%, from 32.2 billion naira to 49.8 billion naira, and non-interest income increased by 29% to 9.9 billion naira from 7.6 billion naira.

Business post observed that the services offered by Wema Bank attracted more customers during the review period, which led to a 43% growth in deposits since the beginning of the year to 1.1 trillion naira from 968 .2 billion naira for the financial year 2021 and in line with the Central Directive of the Bank of Nigeria (CBN), the bank has supported the economy by increasing its corporate loan disbursements by 7% to 447.2 billion naira in the first half of 2022, from N418.9 billion.

“Our performance showed strong and promising results in the second quarter. Customers have continuously trusted our competence, innovation and service delivery, even when the market gets tougher.

That said, I am confident that despite increased volatility and uncertainty, we will continue to grow, manage the environment, creatively manage our resources and generate substantial long-term returns for shareholders,” enthused Mr. Adebise.

In his own remarks, the bank’s Chief Financial Officer, Mr. Tunde Mabawonku, explained that the strong performance stems from the diversification of the bank’s business and the value derived from its digital assets.

“It was a strong first half with interest income up 55% and PBT up 43% compared to the first half of 2021.” said Mr. Mabawonku.

“This good performance is due to the diversification at different levels of our activities. It also speaks to the benefit of our investment in digital banking assets which has continued to increase customer satisfaction and build trust in us.

“Furthermore, we are aware of the challenges that the rising cost of living poses to our customers and stakeholders. Given the size of our balance sheet and growing revenue, we are confident in our ability to continue to provide support and cushion the impact of cost growth on the market,” he said. .