Nigeria’s most innovative bank and digital banking pioneer, Wema Bank Plc, has recorded gross earnings of N95.345 billion in the third quarter ended September 30, 2022, representing a growth of 51.17% year-on-year, from N63.077 billion posted during the same time in 2021.
According to the bank’s unaudited financial results for the third quarter of 2022, the growth in gross earnings reflects an increase in loans and advances and support in a challenging macro economic environment.
The result shows that Interest income grew by 55.14 percent y-o-y, benefitting from strong loan growth and a higher yield environment to N79.973 billion, from N51.550 billion in 2021.
Similarly, Interest income from loans and advances grew by 40.23 percent to N62.245 billion in 2022 from N44.387 billion in 2021. The income from loans and advances had a 77.83 percent contribution to the interest income for the period.
Net fee and commission income grew to N12.015 billion in the third quarter of 2022 from N8.722 billion in 2021 on the back of a rise in credit-related fees and income, electronic banking income, and trade transaction income, amongst others.
Fees on electronic products also grew by 44.55 percent to N2.550 billion from N1.764 billion in Q3 2021.
The bank recorded strong growth in profit before tax from N7.208 billion in 2021 to N9.457 billion in 2022, a growth of 31.2%, while interest expenses grew by 79.65% to N41.501 billion in 2022 from N23.100 billion in 2021.
Commenting on the result, the Managing Director/CEO of the bank, Mr. Ademola Adebise, attributed the sterling performance to the rising and expanding streams of income from both fee-based transaction lines as well as interest from efficient lending activities.
“Our excellent fundamentals as well as high efficiency in risk management and growing streams of income from various business lines are responsible for our upward trajectory across board. We intend to finish the year on a high and further delight our shareholders with an impressive dividend yield at the end of the financial year”, he said
Also commenting on the result, the bank’s Chief Finance Officer, Mr. Tunde Mabawonku, described the result as the testament of the bank’s resilience in a difficult environment characterised by high operating cost and inflation.
“We are building systems and structures that will consistently deliver on results through efficient customer service, customised products and services, and effective internal control measures”, he said.