Wema Bank Reports 108.3% Growth in PBT, Declares N0.24 dividend

Kayode Tokede

Wema Bank Plc’s resilience was on display as the digitally driven financial institution announced its financial results for the year ended December 31, 2021. 

The bank recorded an increase of 108.3per cent in profit before tax (PBT) to close the year at N12.38 billion from N5.95 billion reported in 2020, while profit after tax closed 2021 at N8.93 billion an increase of 94.53 per cent from N4.59 billion in 2020 financial year. 

The impressive performance was driven by a Year-on-Year growth of 15.35per cent in gross earnings to N92.14billion in 2021 from N79.88billion in 2020.

Also from the profit &loss figures, net-Interest Income grew to N39.87billion in 2021from N30.86billion in 2020; growth of 29.22per cent as Non-Interest Income also increased from N16.83billion in 2021 to N18.83billion; a growth of 11.91per cent. 

The management of Wema bank proposed a final dividend of N0.24kobo per ordinary share, subject to appropriate withholding tax and approval will be paid to shareholders.

The performance which capped a remarkable year showed strong growth in key financial indices especially as the bank crossed the N1trillion mark in total assets.

As Wema  bank’s loans and advances to customers rose by 16.33per cent to N418.86billion in 2021 from N360.08billion in 2020, deposit liabilities grew by 15.23per cent to N927.47billion in 2021 fromN804.87billion in  2020 to drive total assets gaining 20.23per cent to N1.164.52billion in  2021 from N968.58billion in 2020.

Key Ratios Return on average equity of 17.26per cent.

In a statement made to the public by the bank, the Managing Director. Mr. Ademola Adebise said, “I am delighted to announce our performance for the year ended 31st December 2021. The Bank’s FY 2021 results shows robust growth in all key financial metrics despite the challenging macro-economic environment.

“Our year end numbers highlight the strong growth trajectory of the financial institution. We comfortably crossed the N1trillion mark in total assets, with a share of approximately three per cent of industry deposits.”

The Chief Finance Officer of the Bank, Mr. Tunde Mabawonku noted that “a key measure of success for us is a consistent growth in our balance sheet and customer base – and we are glad that we are reporting healthy growth in all these areas.” 

Mabawonku also added that, ” Looking forward, we expect that the strong growth will be sustained despite the tough business climate as we execute our customer experience improvement initiatives built around a digital first banking strategy and become first in class in that sphere. The bank will also 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 lending business alongside trade and other revenue lines. We have also unveiled our new Mission and Vision statements which underpins our corporate strategy. We want to be the dominant digital platform in Africa delivering seamless financial service’.