Wema Bank reports 104.7% profit growth in 2023

Wema Bank Plc has released its unaudited financial statement for the full year 2023, posting a pre-tax profit of N30.46 billion, marking a 104.7% growth from the N14.88 billion recorded in FY 2022.

The group recorded a gross earning of N214.70 billion in FY 2023, representing a 61.4% growth from the N133.05 billion recorded in FY 2022.

The group’s loans and advances to customers increased by 53.88% to N802.36 billion in 2023 from N521.43 billion in 2022. While its interest income appreciated to N181.87 billion in 2023, representing a 68.34% growth from the N108.04 billion posted in 2022.

Key Highlights FY 2023 (FY 2022, % Change)

Gross earnings: N214.70 billion (N133.05 billion, +61.4%)
Interest Income: N181.87 billion (N108.04 billion, +68.3%)
Interest Expense: N98.76 billion (N53.81 billion, +83.5%)
Net interest income: N83.11 billion (N54.23 billion, +53.3%)
Operating income: N109.11 billion (N74.44 billion, +46.6%)
Profit before tax: N30.46 billion (N14.88 billion, +104.7%)
Profit for the year: N23.36 billion (N11.35 billion, +105.8%)
Total comprehensive income for the year: N23.36 billion (N15.48 billion, +50.9%)
Basic earnings per share: N2.18 (N0.88, +147.7%)
Cash and cash equivalents: N264.81 billion (N96.29 billion, +175.0%)
Restricted deposit with CBN: N503.32 billion (N353.22 billion, +42.5%)
Loans and advances to customers: N802.36 billion (N521.43 billion, +53.9%)
Total Assets: N2.175 trillion (N1.408 trillion, +63.2%)

What you should know

In 2023, the bank reported a foreign exchange trading income of N814.56 million, marking a substantial surge of 236.4% compared to the N242.14 million recorded in 2022 for foreign exchange trading income.

The bank also recorded an FX revaluation income of N4.98 billion in 2023, marking a 213.1% appreciation from the N1.59 billion recorded as an FX revaluation income in 2022.

Out of the N181.87 billion recorded as interest income, N118.28 billion was recorded as interest income on loans and advances to banks and customers.

Interest income on investment securities reached N57.63 billion, reflecting a notable appreciation of 176.4% compared to the N20.85 billion recorded in 2022 for interest income on investment securities.

In FY 2023, Wema Bank Plc’s investment securities appreciated by 93.4% to N620.78 billion from 2022’s N320.92 billion. The group’s investment in FGN bonds hit N505.94 billion in 2023, an increase of 193.9% from N172.13 billion in 2022.