Wema Bank Boss Gives Facts Behind the Bank’s Growth

The Managing Director/Chief Executive Officer of Wema Bank Plc, Mr. Ademola Adebise, has explained the facts behind the bank’s growing numbers during the half year financial result ended June 30, 2022.

Wema Bank in its second quarter unaudited financial result reported  a 50 percent increase in its gross earnings from N39.82 billion recorded in 2021 to N59.59 billion in half year 2022. The bank also grew its deposit by 43 percent from N968.17 billion reported in 2021 financial year to N1.09 trillion in half year 2022.

Similarly, the Bank recorded a 43 percent increase in Profit before tax (PBT) from N4.30 billion over the same period last year to N6.13 billion for the period under review.

Speaking at the analyst’s conference and Investors’ call, Adebise said: “Our digital channels remain a priority in meeting customer needs and closing the financial inclusion gap.”With a transaction value of N131.5 billion, USSD recorded over 58.6 million in transaction count (+55 per cent,) reaffirming our focus to grow channel usage.

“Mobile banking users completed over 42.8 million transactions within the review period, further driving the financial inclusion initiative.”With over 50 percent growth in agent acquisition, our agency banking base increased to 140 Kobo accounts, at the end of the six months review period.

This helps to further enhance performance across our financial inclusion initiatives. The value of agency funds transfer closed at N7.59 billion in first half of 2022, a 34 per cent year-on-year growth. The stellar growth in agency transfer volume by 550 Kobo per cent was driven by signing-on of new partners”, he said.

According to the Wema Bank MD, the bank’s agency banking solutions will continue to provide support to customers mostly in the rural areas and hard-to-reach regions of the country.”So far, we have over 21,000 agents attending to the financial service needs of these customers,” Mr Adebise added.

The bank’s Chief Finance Officer, Mr. Tunde Mabawonku, said the results point to the resilience and growth trajectory of the bank during the review period.

He said the bank has achieved efficiency in its balance sheet by managing growing deposits and rising interest rate. He also disclosed the bank has achieved an efficient mix of its deposit portfolio by bringing down the cost of funds Mabawonku stated that the bank’s N40 billion rights issue would open and be concluded during the year, a development he said would deliver more value to shareholders.