Wema Bank reported its 2023 second-quarter results showing pre-tax profits grew by 109.57% year on year, reaching N5.87 billion.
This took half-year pre-tax profits to N12.059 billion versus N6.103 billion in the same period last year.
Key highlights Q2 2023 vs. Q2 2022:
- Gross earnings; N50.035 billion +67% YoY
- Interest Income N42 billion +68% YoY
- Interest Expense N24.350 billion +98.26% YoY
- Net interest income N18.42 billion +40.20% YoY
- Net impairment charges on financial assets N1.287 billion +271.33% YoY
- Net interest income after impairment charge for credit losses N17.133 billion +33.93% YoY
- Net income on fees and commission N5.093 billion, +49% YoY.
- Profit for the period N5.111 billion +111.24% YoY.
- Loans and advances to customers N627.006 billion +20.25%.
- Cash and Cash equivalents N187.265 billion +135.59%
- Total Assets N1.881 trillion +30.4%.
- Customers’ deposits N1.393 trillion +19.46%.
Insights:
The substantial growth in pre-tax profit can be attributed to the significant growth in net interest income and net fees and commission income.
- Also, the Bank recorded an impressive 37% growth in interest income generated from loans and advances extended to customers, which contributed to the overall growth in the bank’s interest income.
- However, the bank experienced substantial growth in net impairment charges on financial assets, primarily driven by higher impairment charges on loans and advances as well as investment securities/treasury bills.
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