Wema Bank Plc has posted a profit before tax of N2.61billion for the half year ended 30 June 2019, a significant increase from N1.81 billion posted in 2018.
The breakdown indicates that Gross earnings increased by 27.47% (Y-o-Y) to N40.83billion from N32.03billion in HI 2019.
Deposit liabilities increased by 20.80% to N446.02billion from N369.20billion in 2018 FY while Net Loans increased to N280.96billion in H1 2019, an increase of 11.41% (N252.19 billion in 2018 FY). Total Asset up by 29.40% to N632.53 billion (N488.80 in 2018 FY).
Commenting on the results, Ademola Adebise, MD/CEO of Wema Bank Plc, stated that: “The Financial Performance of the bank in the 1st half of the year is largely in line with our expectations and our strategic aspirations.
“Despite the prevailing tepid economic conditions with GDP growing slowly at slightly above 2%, the bank has been able to grow deposits by 20.80% and increase its loan book by 11.41%.
“The Banks Loan to Deposit ratio (LDR) was above the new minimum threshold of 60% with NPLs below 5%. Gross Earnings increased by 27.47% to N40.83billion from N32.03billion reported in H1 2018 driven by double-digit growth in Interest and Fee-based income.
“Profit before Tax was N2.61billion, a 43.64% growth when compared to N1.82billion reported in H1 2018. “
The Regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 14.59% and Liquidity Ratio at 34.81%.
Adebise further stated that “the economy is still not growing fast enough and there are concerns that the fragile recovery can be derailed if key structural reforms are delayed.”
The bank is positive that it will sustain the double-digit ROE numbers and provide better returns to shareholders.
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