Wema Bank Plc recorded a 54.6 per cent rise in its Profit After Tax (PAT) in the third quarter period ended September 30, 2019 as shown in its just released financial statements.
The Financial Statements which was published on the website of the Nigerian Stock Exchange (NSE) on Thursday, October 24, 2019, shows that the company’s performance in key financial indicators was positive.
According to the results, the bank grew its profit after tax to N4 billion in the ended period of September 30, 2019, up from N2.6 billion of the corresponding period of 2018, representing a massive 54.6 per cent improvement, while its gross earnings for the period also advanced to N64.8 billion, up from N48.9 billion of the corresponding period of 2018, and indication of 32.3 per cent increase.
Correspondingly, the financial institution’s profit before tax for the period in consideration also grew by 54.8 per cent to N4.7 billion in September 2019, up from N3 billion of the third quarter of 2018.
A further analysis of the bank’s financial statement shows that it made N17.2 billion in net interest income over the past nine months of 2019, representing an 8.6 per cent advancement when compared with N15.8 billion generated in the corresponding period of 2018.
During the period in focus, the lender’s net income from fee and commission rose to N8.2 billion, up from N4.8 billion of the same period isn 2018, indicating a 69.8 per cent rise, while its operating income also appreciated by 23.2 per cent to N31.4 billion, up from N25.4 billion of the corresponding time of 2018.
To further affirm that the bank is still customers’ delight, its deposit from customers for the period rose to N456.8 billion, up from N362.3 billion of the same period of 2018, representing a progressive growth of 26 per cent. Its deposits from other banks also increased by 73.9 per cent to N21.7 billion as against N12.5 billion of September 2018.
The company’s earnings per share for the period ended September 30, 2019, increased by 53.3 per cent to stand at N14.1k, as against N9.2k achieved in the third quarter of 2018, Its impairment charges for credit loss for the period increased from N447 million to N1.5 billion in September, 2019.
Like every other Deposit Money Bank in the country, Wema Bank also strives to meet the 65 Loan to Deposit Ratio (LDR) target set by the Central Bank of Nigeria (CBN). In an attempt to meet the December 31, 2019, the bank grew its loans and advances to customers’ portfolio to N286.9 billion, up from N244.8 billion of September 2018, representing a 17.2 per cent improvement on the previous performance, while its trading income from treasury bills also rose to N8.7 billion, up from N4.8 billion of September 2018, an affirmation that commercial banks’ confidence in channeling funds to more secure investments remains.
Established on May 2, 1945 as a private limited liability company under the name Agbonmagbe Bank Limited, Wema Bank is Nigeria’s longest surviving indigenous bank. It was granted a commercial banking license and it commenced commercial banking activities that same year.
In 1987, it was converted to a public limited liability company. Trading under the symbol WEMABANK, the financial institution was listed on the Nigerian Stock Exchange in 1990.
As a bank with a capital base of over N43.8 billion, it has a network of 149 branches and service stations across the country.