Wema Bank’s interest income increased by 43% to N108.04 billion in 2022, with loans and advances to banks and consumers contributing the most.
The loans and advances to banks and customers made up 79.3% of the tier-2 bank’s total interest income, followed by investments securities (19.5%) and cash and cash equivalents (1.3%).
In 2022, loans and advances to banks and clients increased by 33%, to N85.1 billion, from N63.8 billion.
Cash and cash equivalents decreased by 52% to N1.4 billion from N2.9 billion, while investment securities increased by 158% to N20.9 billion in 2022 from N8.1 billion in 2021.
Due to client deposits of N45.6 billion, other borrowings of N4.7 billion, and bank deposits of N2.8 billion, the bank’s overall interest expense increased by 52 percent to N53.8 billion.
The bank’s reported gross income increased to N131.08 billion in 2022, up 42.3 percent from N92.14 billion in 2021.
Treasury bills (N3.5 billion), fixed income securities (N293.4 million), and foreign exchange trading (N242.1 million) all contributed to a 150 percent increase in net trading income to N4 billion.
However, from N3.3 billion in 2021 to N2.9 billion in 2022, other revenue decreased by 12%.
Wema Bank gained N6.1 billion through digital platforms in 2022, which led to a surge in its electronic banking channels. When compared to the N3.4 billion the bank made via electronic channels in 2021, the revenue from e-banking in 2022 indicates a rise of 79%.
The bank’s ALAT digital banking platform, which gained traction and drew more users in the year under review, is what’s driving this increase.
The bank claims that in 2022, the number of consumers who joined ALAT increased by 131%.
Wema Bank also said that the number of new customers for its other card products increased by 98% in just one year.
“ALAT continues to be a key growth engine and success story for the Bank, recording an increase of more than 853,092 over the previous year in the number of clients who are actively transacting on the platform. We are certain of enhanced growth and heightened performance on both platforms in the upcoming year with the release of new and innovative features on ALAT and our ALAT For Business platform, said Babatunde Kasali, chairman of the board of directors at Wema Bank.
“Whether through their local bank branch or through ALAT, the digital banking platform, Wema Bank has always endeavored to put its customers first and meet their requirements along the way. We will keep working toward our ambition of being Nigeria’s leading digital banking platform, which calls for an uncompromising focus on our digital business, a crucial tool for attracting, keeping, and engaging customers,” he added.
Wema Bank increased its earnings after taxes from N8.9 billion in 2021 to N11.2 billion in 2022, a 26 percent increase. The bank’s earnings before tax increased by 19% to N14.8 billion from N12.4 billion over the same periods.
Wema Bank’s managing director and chief executive officer, Moruf Oseni, commented on the bank’s performance, stating that “our 2022 results show the result of the careful execution of our medium-term strategy as we have deliberately focused on deepening on offerings to the corporate, commercial, and retail segments of the market using our digital channels while ensuring best-in-class customer experience platforms to deliver improvements across all customer touch points.” In 2023, we anticipate the bottom line to advance considerably further.
Net fee and commission revenue at Wema Bank increased to N16.6 billion, up 24% from N13.4 billion, while net trading revenue hit N4 billion, up 150% from N1.6 billion during the reviewed period.
Wema Bank spent the sum of N3.3 billion on advertising and marketing, 154 percent growth from N1.3 billion in 2021. The bank’s transport and communications 38 percent growth to N778.7 million from N562.8 million in the reviewed period.
With wages and salaries at N14.7 billion, outsourced staff costs at N4.8 billion, and pension contributions at N1.8 billion, personnel costs increased by 28% to N21.3 billion.
The bank’s total assets increased by 23 percent from N1.2 trillion to N1.44 trillion in 2022. Additionally, shareholder money increased by 17% from N70.36 billion in 2021 to N82.62 billion.
The profit for the year attributable to equity holders of Wema Bank increased from N8.9 billion to N11.4 billion. The earnings per share increased from N69.4 during the reviewed period to N88.3 today.