Unaudited Results For The 9 Months Ended September 30, 2019 – Announces A Double-Digit Growth Of 55.56% In Profit Before Tax (Pbt), To N4.76billion

LAGOS, NIGERIA – 28th October 2019 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema” or “the Bank”) announces its unaudited Q3’2019 financial results. 

The Chief Finance Officer, Tunde Mabawonku gave the following updates:

“We are delighted to announce the Bank’s Q3 2019 results. The performance shows growth in key financial metrics despite the challenging macro-economic environment. Wema Bank recorded YoY growth of 55.56% in profit before tax (PBT) to close the quarter at N4.76billion. This was on the back of growth of 30.95% in Gross earnings from N48.99billion in Q3’2018 to N64.15billion in Q3’2019. The Bank continued to benefit from fees and other non-interest income which closed at N15.79billion in Q3’2019 compared to N10.10 billion in Q3’2018; a growth of 56.34%. Net interest income also recorded a growth of 8.85%, compared to Q3 2018. (Q3 2019; N17.2billion; Q3 2018; N15.8billion).’’

According to the Chief Finance Officer, “The key measure of success for us is growth in customers and customer activity – and we are glad that we are reporting strong double-digit growth here. Customer deposits grew by 23.69% to N456.8billion from N369.3billion in 2018 FY. Net loans grew by 13.76% from N252.2billion (2018 FY) to N286.9 billion (Q3 2019), with a loan to deposit ratio above the regulatory prescribed minimum threshold. NPL numbers remained below 5% while Capital Adequacy of 14.78% is above the regulatory minimum of 10%.

 

The Bank continues to do well in the Digital space, with ALAT. The Managing Director – Mr. Ademola Adebise also further reiterated this strong performance stating that, “The future for Wema remains growth through innovation and we are proud to be the leading Bank in the Digital Banking space. ALAT has revolutionized customer on-boarding in the industry, now we are taking on payments and commerce. We are creating a digital platform for youths, young entrepreneurs and young professionals. The Bank has also commenced trade partnership with the Bank of Africa group to strengthen its commercial business. We believe that with the focused execution of our 3-year strategy, Wema will remain the Bank to watch out for. The bank remains committed to sustaining this impressive performance and to deliver on the FY 2019 guidance across all key metrics.”

 

Income Statement

  • Gross earnings increased by 30.95% (Y-o-Y) to N15billion in Q3’2019 from N48.99billion in Q3 2018
  • Reported Profit before Tax (PBT) and Profit After Tax (PAT) of N76billion and N4.12billion, an increase of 55.56% and 56.06% respectively in Q3’2019 (Q3 2018; N3.06billion PBT, N2.64billion PAT)
  • Net-Interest Income grew to N2billion from N15.8bilion in Q3 2018; growth of 8.85%
  • A growth of 56.34% in Non-Interest Income to N79billion from N10.10billion in Q3 2018

 

Statement of Financial Position

  • Deposit Liabilities up by 23.69% to N8billion from N369.3billion in 2018 FY
  • Net loans grew by 13.76% from N2billion (2018 FY) to N286.9 billion (Q3 2019)
  • Total Asset increased by 25.70% to N7billion in Q3 2019 from N477.9billion in 2018 FY

 

Key Ratios

  • ROAE of 11.93% in Q3 2019 (Q3 2018; 7.83%)
  • ROAA of 1.07% in Q3 2019 (Q3 2018; 0.85%)
  • 99% NPL ratio (Q3 2018; 4.28%)
  • CAR is 14.78% (Q3 2018; 13.33%)

 

Operational Achievements

  • Fitch, GCR and Agusto re-affirm Wema’s National Long-term rating at (BBB-)
  • We have upgraded our core banking application and infrastructure to enhance customer service excellence across all banking channels
  • Our Agent banking network has increased to over 2,700, thus deepening our retail franchise and banking penetration.

 

Financial Performance Highlights

 

Below is the performance summary of the Bank.

 

Income statement (N’bn) Q3 2019 Q3 2018 (∆) (∆%)
Gross Earnings 64.15 48.99 15.16 30.95%
Interest Income 48.36 38.89 9.47 24.35%
Net Interest Income 17.22 15.82 1.40   8.85%
Non-interest income 15.79 10.10 5.69 56.34%
Operating expense 26.63 22.39 4.24 18.94%
Profit before Tax 4.76 3.06 1.70 55.56%
Profit after Tax 4.12 2.64 1.48 56.06%
Earnings Per Share 14.30kobo 9.20kobo 5.10 55.43%

 

Balance Sheet (N’bn) Q3 2019   FY 2018 (∆) (∆%)
Total Assets 600.7 477.9 122.8 25.70%
Loans and Advances 286.9 252.2 34.70 13.76%
Deposits 456.8 369.3 87.50 23.69%
Shareholders’ Funds 53.8 50.9 2.90 5.70%

 

Key Ratios (in %) Q3 2019 Q3 2018 (∆)
Return on Average Equity 11.93 7.83 3.95
Return on Average Asset 1.07 0.85 0.21
Yield on Asset 16.54 17.98 -1.44
Net Interest Margin 5.89 6.85 -0.96
Capital Adequacy Ratio 14.78 13.33 1.45
Liquidity Ratio 32.04 30.38 1.66
Loan-to-Deposit Ratio 60.46 63.91 -3.45
Non-Performing Loans Ratio 3.99 4.28 0.29
Cost to Income Ratio 84.84 85.39 0.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted in Investor Press Release.