Wema Bank Posts Impressive Half-Year 2023 Financial Result
Wema Bank posted remarkable gross earnings of N89.09 billion in a half-year period ending June 30, 2023.
This is a year-on-year increase of 49 percent over N59.59 billion in the corresponding period of 2022 (H1 2022).
Its unaudited results for half year period filed to the Nigerian Exchange showed that profit before tax (PBT) also rose sharply by 97 percent to N10.48 billion year-on-year, up from N5.30 billion reported in H1 2022.
“This is the Tier 2 lender’s best performance in more than 10 years since its reorganisation after a bailout.
The new heights owe to the new leadership of the bank led by Moruf Oseni who has refocused the bank after many years of profitlessness,” a stockbroker told InsideBusinessNG.
An analysis of the results showed that the impressive performance was largely driven by both interest and non-interest income. While interest income went up 53 percent year on year to N76.11 billion, up from N49.75 billion, non-interest income increased by 32 percent to N12.98 billion, up from N9.85 billion in the corresponding period of 2022.
The bank also grew its deposits year to date by 19 percent to N1.392 trillion from N1.165 trillion reported in the full year 2022.
Loans and Advances also surged by 20 percent to N627.01 billion in H1 2023 from N521.43 billion in a full year, 2022.
In a statement, the deposit money bank quoted the Managing Director, Moruf Osen as saying that “The management team at Wema Bank is focused on driving the execution of our current corporate strategy. Our embrace of technology is helping us deliver seamless best-in-class services while offering compelling value propositions to customers.
“Hence, we are seeing record-breaking returns across the board. Finally, we continue to see improvements in our corporate, commercial, and retail businesses as evidenced by our strong loan growth,” the Wema boss promised.
According to him, with the improved stability in the operating environment, the bank’s earlier approved rights issuance will be commencing this 3rd quarter of 2023.
“It has been a good half-year performance for Wema Bank with gross earnings growing by 49 percent year on year and earnings per share at 163.0 Kobo. In addition, our cost-to-income ratio at 72.71 percent has witnessed significant improvement from the previous period. We have also succeeded in making Wema Bank an integral part of the Fintech ecosystem in Nigeria with our ubiquitous fintech infrastructure support play,” Oseni added.
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