Wema Bank grows Q3 PBT by 174% to N60.62bn

…Share price up 42.86% year-to-date

Wema Bank Plc has released its unaudited Consolidated Financial Statements for the third-quarter ended September 30, 2024. The bank’s Q3 results released to the investing public at the Nigerian Exchange Group (NGX) show the bank reported profit before tax (PBT) of N60.62billion, representing an increase of 174 percent over the N22.13billion recorded in the corresponding period in 2023.

At N8 per share on Thursday October 30, the share price of Wema Bank has risen year-to-date (YtD) by 42.86percent, outperforming the market’s benchmark indicator which has risen same period by 31.09 percent.

The bank recorded an improved third quarter performance as gross earnings grew by 91 percent to N288.32billion (Q3 2023: N150.90billion). Interest Income was up 81 percent year-on-year (y/y) to N229.11billion (Q3 2023: N126.67billion). Non-Interest Income went up 144percent y/y to N59.21billion (Q3 2023: N24.23billion).

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Return on Equity (ROAE) of 38.62percent, Pre-Tax Return on Assets (ROAA) of 2.64percent, Capital Adequacy Ratio (CAR) of 14.06percent and Cost to Income Ratio (CIR) of 60.47percent, speak to the resilience of the brand.

“Our Q3 2024 numbers speaks to our resilience despite a tough operating environment. We will sustain our growth trajectory into 2025. The performance is headlined by impressive improvements in Profit before Tax which grew strongly by 174percent.

“The growth of Gross Earnings by 91.07percent, Total Assets by 38 percent and earnings per share at 328.1kobo shows the core improvements to our balance sheet. In addition, our cost to income ratio at 60.48percent has witnessed significant improvement from the previous period,” said Moruf Oseni, Managing Director/Chief Executive Officer, Wema Bank.

Wema Bank’s balance sheet remained well structured with total assets growing by 38percent to N3.084trillion in Q3 2024 from N2.240trillion in FY 2023.

The bank also grew its deposit base year to date (YtD) by 23 percent to N2.292trillion from N1.860trillion reported in FY 2023. Loans and Advances grew by 25 percent to N1.003trillion in Q3 2024 from N801.10billion in FY, 2023. Non-performing loan (NPL) stood at 3.19 percent as at Q3 2024.