By Chinwendu Obienyi and Chukwuma Umeorah
Wema Bank has announced a 196 per cent growth from N14.75 billion to N43.59 billion in Profit Before Tax (PBT) in its full Year 2023 Audited financial statement.
The bank also proposed a dividend per share of 50 kobo to its shareholders. This is in line with its capital conservation strategy and to ensure that it continues to provide returns to its shareholders in anticipation of additional capital raises scheduled for later this year.
Additionally, Wema Bank witnessed a substantial increase in deposit growth by 60 per cent to reach N1.86 trillion compared to the N1.16 trillion reported in the previous year.
Its Gross earnings grew to N225. 75 billion from N131 billion while its total asset rose to N2.24 trillion from N1.43 in the previous year representing a 56 per cent jump. Its Return on Equity (ROAE) stood impressively at 39.28 per cent, while the Non-Performing Loans (NPL) ratio was reported at 4.31 per cent.
Commenting on the results, the MD/CEO of the Bank, Moruf Oseni said “We are satisfied with the bank’s performance in the first year of the new leadership team, as we move in a strong growth trajectory. The growth of Gross Earnings by 72 per cent, Total Assets by 56 per cent and earnings per share at 279.5 kobo shows the core improvements to our balance sheet. In addition, our cost to income ratio at 64.37 per cent has witnessed significant improvement from the previous period.
“Our target remains clear, we want to become a Top-Tier Bank in the industry powered by Digital excellence, we have carved a niche for ourselves with ALAT as a Retail platform, but we are now positioning the enterprise as the intelligent platform for all financial services.”
Oseni noted that the bank had also completed its N40 billion Capital raise exercise which has actively positioned Wema bank for the new capital licensing requirements of the Central Bank of Nigeria (CBN). “Wema Bank will accelerate its capital management plans and ensure we embark on the journey to raise the required capital as quickly as possible.”