Wema Bank Posts a remarkable 109.57% growth in pre-tax profit in Q2

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.

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%.

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.