Wema Bank’s gross earnings for the third quarter ended September 30. 2022 grew by 51.17% y-o-y to N95.354 billion, from N63.077 billion, reflecting an increase in loans and advances and supported by a higher interest rate environment.
This was on the back of a high inflation environment and currency devaluation, which the economy continues to battle.
Nigeria’s inflation rate hit a new 17-year high of 20.77% in September 2022. Nigeria’s inflation rate surged to 20.77% in September 2022, up from 20.52% recorded in the previous month.
Interest income grew by 55.14% y-o-y, benefitting from strong loan growth and a higher yield environment to N79.973 billion, from N51.550 billion in 2021.
Interest income from loans and advances grew by 40.23% to N62.245 billion in 2022 from N44.387 billion in 2021. The income from loans and advances had a 77.83% 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% 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.
Other key financial highlights
- Profit after tax grew by 31.17% to N8.179 billion in 2022 from N6.235 billion in 2021
- Net impairment loss on financial assets grew by 162% to N2.126 billion in 2022 from N811 million in 2021
- Other operating expenses grew by 38.65% to N23.694 billion in 2022 from N17.088 billion in 2021
- Income tax expense grew by 31% to N1.277 billion from N974 million the previous year