The economic downturn in the country has a devastating impact on the performance of Wema Bank with its post-tax profit declining 35.32% to N2.64 billion, its third quarter 2020 financial statement released to the Nigerian Stock Exchange (NSE) on Tuesday has shown.
The bank’s revenue went down 10.80% year-on-year to N57.83 billion in Q3 2020 compared with N64.83 billion it generated in the prior period last, weakened by interest income which was lower by -5.39% and net fees and commission income that waned 16.11% during this period.
Wema Bank financial performance in the first nine months of the year was also hobbled by the 14.91% rise to N1.87 billion in the provision it had to make for its toxic assets.
The revenue it generated from net trading activities was lower by 45.61% to N4.86 billion in Q3 2020 instead of N8.94 billion it raked in Q3 2019.
It succeeded in cutting interest expenses by 17.42% to N26.30 billion from N31.84 billion in Q3 2019 and reduced personnel costs marginally by -0.38% to N10.57 billion during this period.
The bank grew total deposits by 20.82% to N701.84 billion in Q3 2020 against N580.92 billion in Q3 20219 as the total liabilities improved by 22.23% to N807.60 billion.
Meanwhile, it gave out 24.39% more loans to the tune of N359.80 billion during this time as its total assets grew by 20.64% to N863.60 billion.