Monday, July 29, 2019 /06:30 PM / By NSE With Additional Notes From Wema Bank’s Press Release
Wema Bank Plc released its unaudited second quarter results for the period ended June 30, 2019.
Revenue grew by 27.5% to N40.84bn from N32.03bn in the previous quarter.
Profit Before Tax grew by 43.7% to N2.61bn
PAT grew by 43.2% to N2.25bn
Net Assets also increased by 2.2% to N50.04bn from N50.90bn as at December 30, 2018.
Ademola Adebise, MD/CEO of Wema Bank Plc, commenting on the results, stated that:
“The Financial Performance of the bank in the 1st half of the year is largely in line with our expectations and our strategic aspirations’
Despite the prevailing tepid economic conditions with GDP growing slowly at slightly above 2%, the bank has been able to grow deposits by 20.80% and increase its loan book by 11.41%. The Banks Loan to Deposit ratio (LDR) was above the new minimum threshold of 60% with NPLs below 5%. Gross Earnings increased by 27.47% to N40.83billion from N32.03billion reported in H1 2018 driven by a double-digit growth in Interest and Fee based income. Profit before Tax was N2.61billion, a 43.64% growth when compared to N1.82billion reported in H1 2018.
Regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 14.59% and Liquidity Ratio at 34.81%.
Within the 1st half of the year, inspired by the need for improvement of women and the society, the bank launched “Sara by Wema”, a female proposition designed to enable women benefit from growth opportunities that help maximize their personal or business goals. Also, within the period, the bank had its first Hackathon event with the aim of bringing the young and entrepreneurial mindset of Nigerian youths together to use technology to solve problems and to provide them with financial and advisory services. ALAT our flagship digital Bank now accounts for close to half-a-million customers on our platform’”.
Adebise further stated that, “the economy is still not growing fast enough and there are concerns that the fragile recovery can be derailed if key structural reforms are delayed”. For Wema Bank, our clear mandate of delivering on the Most Reliable, Convenient and Simple banking platform continues and we will measure our success by number of active customers and number of partnerships that we develop across the business landscape. We are positive that we will sustain the double-digit ROE numbers and provide better returns to shareholders.
‘Ademola Adebise (MD/CEO)
Visit Wema Bank Plc IR Page in Proshare MARKETS
Graph – One Year Share Price Movement