Wema Bank profit dips 14.6% in Q1 2020

By FELIX OLOYEDE

The economic downturn in the country took its toll on the performance of Wema Bank in the first quarter of 2020 as its profit after tax declined 14.6 per cent to ₦977.3 million from ₦1.1 billion in Q1 2019.

This was despite gross earnings increasing 4.6 per cent to ₦20.8bn during this period from ₦19.9 billion in Q1 019, the bank’s financial statement which was released to the Nigerian Stock Exchange showed.

The performance of Wema Bank was stifled by impairment for toxic assets which went up almost 60 per cent to ₦600 million from ₦400 million in the first quarter of last year, as the dip oil crude price and coronavirus pandemic adversely impact the country’s economy.

While the bank’s gross revenue appreciated by only 4.6 per cent in Q1 2020, its operating expenses shot up by almost 16 per cent to N8.9 billion during this period.

Total loans and advances grew 8.5 per cent to ₦313.8billion in Q1 2020, total deposits higher by 11.6 per cent to ₦648.3 billion as Wema Bank total assets went up 11 per cent to ₦794.5 billion and total liability rose 11.8 per cent to ₦738.4 billion during this period.

The bank’s loan to deposit ratio stood at 52.6 per cent, lower than the 65 per cent set by the regulatory authority.