Wema Bank Reports 43% Growth in Interest Income Driven by Loans and Digital Banking – Wema Bank, a tier-2 Nigerian bank, has reported a 43% increase in interest income to N108.04 billion in 2022, with loans and advances to banks and customers contributing the most at 79.3%. Loans and advances grew by 33% to N85.1 billion, while investment securities surged by 158% to N20.9 billion.
However, cash and cash equivalents decreased by 52% to N1.4 billion. The bank’s interest expenses rose by 52% to N53.8 billion, driven by customer deposits and borrowed funds.
Wema Bank’s total gross earnings for the year reached N131.08 billion, indicating an increase of 42.3% YoY. Net trading income jumped 150% to N4 billion, driven by treasury bills, fixed income securities, and foreign exchange trading. On the other hand, other income dropped by 12% to N2.9 billion.
The bank’s electronic banking channels witnessed significant growth, with digital platforms generating N6.1 billion, representing a 79% increase compared to N3.4 billion in 2021. The growth was attributed to the success of the bank’s digital banking platform, ALAT, which recorded a 131% increase in the number of customers onboarded in 2022.
Wema Bank’s Chairman Board of Directors, Babatunde Kasali, expressed confidence in the bank’s growth prospects, saying, “We will continue to work towards our goal of becoming Nigeria’s dominant digital banking platform, an objective that requires an unwavering focus on our digital business, a key lever for customer acquisition, retention, and engagement.”
The bank’s profit after tax grew by 26% to N11.2 billion, while profit before tax amounted to N14.8 billion, up 19% from the comparable period. Wema Bank’s net fee and commission income rose by 24% to N16.6 billion, and shareholders’ funds climbed to N82.62 billion, indicating a 17% increase.