WEMA Bank profit grows by 40 per cent

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WEMA Bank Plc says its profit before tax rose by 40.83 per cent year on year to N6.76bn in 2019 from N4.80bn in 2018.

A statement from the bank on its audited results for year ended December 31, 2019 showed that its profit after tax rose by 56.16 per cent to N5.20bn in 2019 from N3.33bn in 2018.

Commenting on the report, the Managing Director and Chief Executive Officer, Wema Bank Plc, Ademola Adebise, stated, “We are pleased to announce our 2019 financial year results.

“The results show that year on year, Wema Bank has continued its steady growth trajectory.

“The bank recorded gross earnings of N94.89bn, which was a 32.65 per cent increase over the final year 2018 performance of N71.53bn

“Profit before tax was N6.76bn, which represented a 40.83 per cent growth over the N4.80bn reported in 2018 and profit after tax was N5.20bn from N3.33bn in final year of 2018.”

Adebise stated that the bank had continued to grow its deposit base, while also reducing its cost of funds.

He added that deposits were up by 56.35 per cent in 2019 to N577.28bn from 2018 figure of N369.20bn.

Loans and advances grew from N252.19bn in 2018 to N289.24bn in 2019, a year-on-year increase of 14.69 per cent.

The bank stated that it had also increased its dividend payment from three kobo per share to four kobo per share, translating to a dividend yield of eight per cent.

Adebise added, “While the results for 2019 showed very strong growth, the economic headwinds of the last few weeks have moderated our growth expectations for the next few months.

“It is expected that the economic and social impact of the COVID-19 virus will be far reaching. As a bank, we have also tried to play a role in supporting local and federal efforts in providing relief to those impacted directly and indirectly.

“This ‘new normal’ has necessitated massive adoption of technology across the economy and we are glad that we have stayed ahead of the curve and our previous technology investments have continued to yield results. ALAT, Nigeria’s first fully digital bank, continues to record strong performance as adoption rates have grown and customer base is almost at the half a million mark.”

Source: PUNCH.

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