Wema Bank Impresses With 42% Rise in Half-Year Profit

July 30, 2022
wema bank Maraba branch

By Dipo Olowookere

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

The lender, which prides itself as the pioneer of Africa’s first fully digital bank, showed resilience, affirming the effectiveness of the strategies deployed by the management team led by Mr Ademola Adebise.

A look at the financial results of the company for the period ended June 30, 2022, showed that Wema Bank recorded double-digit growth in both the top-line and bottom-line of the accounting statements.

In the period under consideration, the pre-tax profit rose by 43 per cent to N6.13 billion from N4.30 billion in the same period of last year, while the post-tax profit leapt by 42 per cent to N5.30 billion from N3.72 billion in H1 2021.

In the first half of the year, the financial institution grew its gross earnings 50 per cent to N59.6 billion from N39.8 billion, with interest income jumping by 55 per cent from N32.2 billion to N49.8 billion and the non-interest income expanding by 29 per cent to N9.9 billion from N7.6 billion.

Business Post observed that the services offered by Wema Bank attracted more customers in the period under review, resulting in a 43 per cent year-to-date growth in deposits to N1.1 trillion from N968.2 billion in FY 2021 and in compliance with the Central Bank of Nigeria (CBN) directive, the bank supported the economy by increasing its loan disbursement to businesses by 7 per cent to N447.2 billion in H1 2022 from N418.9 billion.

“Our performance has shown strong and promising results in the second quarter. Customers have continually shown trust in our proficiency, innovation, and service delivery even as the market gets more challenging.

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

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

“This has been a strong first half with Interest Income up 55% and PBT up 43 per cent compared to H1 2021.” Mr Mabawonku said.

“This strong showing is down to diversification at different levels of our businesses. Also, it is a testament to the advantage of our investment in digital banking assets which have continued to boost customer satisfaction and build trust for us.

“Also, we are aware of the challenges that the rising cost of living is having on our customers and stakeholders. Given the size of our balance sheet and income growth, we have trust in our ability to continue to provide support and help cushion the impact of growing costs in the market,” he said.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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