Wema Bank’s third-quarter 2024 results show a significant increase in pre-tax profits, reaching ₦30.05 billion compared to ₦10.06 billion in Q3 2023. For the first nine months of 2024, pre-tax profits rose to ₦60.62 billion.
Key financial highlights include:
- Interest Income: ₦83.84 billion (+65% YoY), largely from loans and advances, which made up 66% of total interest income.
- Net Interest Income: ₦42.43 billion (+86.39% YoY).
- Net Fees and Commission Income: ₦14.83 billion (+117.7% YoY), driven by FX transactions and electronic fees.
- FX Revaluation Gains: ₦8 billion (+140% YoY).
- Operating Income: ₦61.61 billion (+92.04% YoY).
- Profit After Tax: ₦26.14 billion (+198.78% YoY).
- Earnings Per Share: ₦4.88 (+79.41% YoY).
Total assets rose by 37.56% to ₦3.093 trillion, with customer deposits increasing 23.9% to ₦2.292 trillion. Loans and advances also grew to ₦1.003 trillion (+25.24% YoY), while cash equivalents slightly decreased by 3.02%.
Despite these robust gains, rising impairment charges on loans, up 230% in Q3 alone, indicate potential risks. This increase in provisions to ₦11.933 billion for the nine-month period reflects a heightened risk environment and new capital requirements, which could impact future profitability if not addressed. Investors, however, remain optimistic, with Wema Bank shares up 43% year-to-date, following a 47% gain in 2023.