Wema Bank Plc has posted gross earnings of N57.83 billion for the period ended September 30, 2020, indicating a decline of -10.8% from the value recorded in the corresponding period of 2019.
This is according to the latest financial report sent by the bank to the Nigerian Stock Exchange market today.
Some key highlights of the report are:
- Gross earnings declined to N57.83 billion, down by -10.8% Y-o-Y.
- Pre-tax profit fell to N3.06 billion, indicating a decline of -35.4% Y-o-Y.
- Profit After Tax fell to N2.64 billion, down by -35.3% Y-o-Y.
- Interest income also declined to N46.39 billion, down by -5.4% Y-o-Y.
- Interest expense declined to N26.29 billion, indicating a decline of -17.42% Y-o-Y.
- Net interest income rose to N20.09 billion, showing an increase of +16.9% Y-o-Y.
- Operating income declined to N29.66 billion, down by -5.4% Y-o-Y.
- Earnings Per Share (Basic) declined to N9.2, indicating a decline of -34.8% Y-o-Y.
- Cash and cash equivalents increased over a nine months period to N76.28 billion, up by + 15.6% Y-o-Y.
- Deposits from customers also increased over the nine months period to N701.84 billion, up by +21.6% Y-o-Y.
Bottom Line
The decline in gross earnings negatively affected other aspects of the financials and is attributable to a fall in some of its income earning components, largely due to the impact of the COVID-19 pandemic.
For example, a fall in income components like investment securities, loans, and advances to customers affected the interest income, while a fall in earnings from treasury bills and foreign exchange trading negatively impacted net trading income.