Wema Bank Plc resilience has been on display lately as evidenced in the digitally driven financial institution’s financial results. Wema capped the year ended December 31, 2021 with strong growth in key financial indices, especially as the bank crossed the N1trillion mark in total assets.
The full year 2021 results
Wema Bank recorded an increase of 108.3percent in profit before tax (PBT) to close the financialyear(FY) 2021 at N12.38 billion. This was driven by a year-on-year (YoY) growth of 15.35percent in gross earnings to N92.14billion in 2021 from N79.88billion in 2020. The bank’s deposit liabilities grew by 15.23percent to N927.47billion in2021 from N804.87billion in 2020 while its total asset increased by 20.23percent to N1.164trillion in 2021, from N968.58billion in 2020.
Gross earnings increased by 15.35percent year-on-year to N92.14billion in full year 2021 from N79.88billion in 2020.Profit Before Tax (PBT) of N12.3billion in financial year 2021 represents an increase of 108.26percent YoY from N5.95billion in 2020 whileProfit After Tax (PAT) of N8.93billion in 2021 represents an increase of 94.53percent YoY from N4.59billion in 2020.
Net-Interest Income grew to N39.87billion in FY 2021from N30.86billion in FY 2020; growth of 29.22percent. Non-Interest Income also increased from N16.83billion in FY 2021 to N18.83billion; a growth of 11.91percent.
Deposit liabilities up by 15.23percent to N927.47billion in FY 2021 from N804.87billion in FY 2020. Loans and advances to customers rose by 16.33percent to N418.86billion in FY 2021 from N360.08billion in FY 2020.
Similarly, total asset increased by 20.23percent to N1.164.52billion in FY 2021 from N968.58billion in FY 2020. Key ratio shows return on average equity of 17.26perecent in FY 2021.
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Shares are outperforming
Looking at Wema Bank’s share performance on the Nigerian Bourse, investors who bought the shares since this year have reasons to smile. For instance, the N3.46 per share it closed as at Friday, May 20 represent remarkable increase by 380.6percent year-to-date (YtD).
The share price nears its record 52-week high of N3.85. Listed on banking subsector of the Nigerian Exchange Limited (NGX) mainboard, Wema Bank has 12,858,155,360 shares outstanding.
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Management speaks
“The bank’s full year 2021 results show 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 3percent of industry deposits,” said Ademola Adebise, Managing Director/ Chief Executive Officer, Wema Bank Plc.
Tunde Mabawonku, Chief Finance Officer, Wema Bank said “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.”
“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,” Mabawonku noted.
