26th April 2021 – Wema Bank PLC announces its audited results for the year ended 31st December 2020.
“The Bank weathered the disruptions of the 2020 Financial Year through a sharp focus on safe lending, keeping NPLs low and driving transaction income. The Bank remains resilient and has continued to grow its business in an efficient manner as we persist in adapting our strategy to yield strong financial results despite the adverse economic situation”.
The Bank recorded a y/y double-digit growth of 39.42% in Customer Deposit (FY 2020; N804.87billion, FY 2019; N577.28billion). Net Loans closed at N360.08billion, a growth of 24.49% (FY 2019; N289.24billion), as the bank continues to support its customers across multiple sectors of the economy.
Non-Performing Loans (NPL) was pushed down to 4.70% y/y from 7.38% in FY 2019. The Bank closed with Total Assets and Contingents of over N1trillion naira.
Wema bank has proposed a dividend of 4kobo per share in FY 2020 (FY 2019: 4kobo). This will be the 3rd straight year that the bank has paid dividends.
According to Mabawonku, “We have a clear strategy of becoming the “Most Dominant Digital Bank in Nigeria” by 2023. We have positioned ALAT as the go-to platform by both increasing customer acquisition and working with eco-system partners on payments and settlements.
During the year, Wema Bank was ranked 2nd in the Retail Category and 6th in the SME category in the 2020 KPMG Customer Satisfaction Survey. The bank also received an award for the Best SME Bank of the Year for 2020 from BusinessDay, thus recognizing Wema Bank’s continuous support for small and medium scale businesses through loans, business advisory and innovative payments & collections support.
| Income statement (N’bn) | FY 2020 | FY 2019 | (%∆) |
| Gross Earnings | 81.38 | 94.89 | -14.24% |
| Net Interest Income | 30.85 | 25.99 | 18.72% |
| Profit before Tax | 5.93 | 6.76 | -12.25% |
| Earnings Per Share | 11.90 kobo | 13.50 kobo | -11.85% |
| Balance Sheet (N’bn) | FY 2020 | FY 2019 | (%∆) |
| Total Assets | 979.52 | 715.87 | 36.83% |
| Loans and Advances(net) | 360.08 | 289.24 | 24.49% |
| Deposits | 804.87 | 577.28 | 39.42% |
| Shareholders’ Funds | 59.14 | 55.16 | 7.22% |
| Key Ratios (in %) | FY 2020 | FY 2019 |
| Return on Average Equity | 10.03 | 14.71 |
| Return on Average Asset | 0.61 | 1.02 |
| Net Interest Margin | 5.74 | 6.04 |
| Yield on Asset | 12.01 | 16.47 |
| Capital Adequacy Ratio | 15.05 | 13.60 |
| Liquidity Ratio | 31.04 | 32.37 |
| Loan-to-Deposit Ratio | 43.24 | 48.61 |
| Non-Performing Loans Ratio | 4.70 | 7.38 |
| Cost to Income Ratio | 85.89 | 84.66 |
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