WEMA BANK : QUARTER 4 - FINANCIAL STATEMENT FOR 2022

WEMA BANK PLC

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2022

Contents

Page

Statements of profit or loss and other comprehensive income	1
Statements of financial position	2
Statements of changes in equity	3
Statement of Prudential Adjustments	5
Statement of cash flows	6

Wema Bank Plc

Consolidated and Separate Financial Statements

For the period ended 31 December, 2022

Statement of Profit or loss and other Comprehensive Income
		Group		Bank
In thousands of Nigerian Naira	3 Months	12 Months	12 Months	3 Months	12 Months	12 Months
	31-Dec-22	31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-22	31-Dec-21
Gross Earnings	33,951,121	129,305,584	93,632,481	34,228,520	128,087,579	92,137,078
Interest income	24,418,859	104,392,745	74,798,291	24,696,258	103,174,740	73,302,888
Interest expense	(11,713,871)	(53,215,125)	(34,921,553)	(12,139,867)	(52,147,914)	(33,428,346)
Net interest income	12,704,988	51,177,620	39,876,738	12,556,391	51,026,826	39,874,542
Net impairment loss on financial assets	115,685	(2,010,677)	(2,104,393)	115,685	(2,010,677)	(2,104,393)
Net interest income after
impairment charge for credit losses	12,820,673	49,166,943	37,772,345	12,672,076	49,016,149	37,770,149
Net gain on FVTPL investment securities	-	1,462,883	557,330	-	1,462,883	557,330
Net fee and commission income	4,570,788	16,586,216	13,424,103	4,570,788	16,586,216	13,424,103
Net trading income	4,079,395	3,966,807	1,556,099	4,079,395	3,966,807	1,556,099
Other income	882,078	2,896,933	3,296,658	882,078	2,896,933	3,296,658
	9,532,262	24,912,839	18,834,190	9,532,262	24,912,839	18,834,190
Operating income	22,352,935	74,079,782	56,606,535	22,204,338	73,928,988	56,604,339
Personnel expenses	(6,001,125)	(21,319,011)	(16,677,420)	(6,001,125)	(21,319,011)	(16,677,420)
Depreciation and amortization	(1,289,397)	(4,545,925)	(3,399,318)	(1,289,397)	(4,545,925)	(3,399,318)
Other operating expenses	(9,928,853)	(33,623,806)	(24,152,302)	(9,926,857)	(33,612,966)	(24,143,460)
Profit before tax	5,133,559	14,591,041	12,377,495	4,986,959	14,451,087	12,384,142
Income tax expense	(673,240)	(1,950,897)	(3,450,940)	(673,240)	(1,950,897)	(3,450,940)
Profit for the year	4,460,319	12,640,144	8,926,555	4,313,719	12,500,190	8,933,202
Other comprehensive income, net of income tax Items that will
not be subsequently reclassified to profit or loss
Net change in fair value of investments FVTOCI	-	-	3,621,287	-	-	3,621,287
	-	-	3,621,287	-	-	3,621,287
Items that will be subsequently reclassified to profit or loss
Net change in fair value of investments FVOCI	-	-	-	-	-	-
Income tax relating to items that may be reclassified subsequently
to profit or Loss	-	-	-	-	-	-
Other comprehensive income for the year	-	-	3,621,287	-	-	3,621,287
Total comprehensive income for the year	4,460,319	12,640,144	12,547,842	4,313,719	12,500,190	12,554,489
Profit attributable to:
Equity holders of the Bank	4,460,319	12,640,144	8,926,555	4,313,719	12,500,190	8,933,202
Total comprehensive income for the year
4,460,319	12,640,144	12,547,842	4,313,719	12,500,190	12,554,489
Earnings per share-basic	138.8	98.3	23.1	134	97.2	23.2

Wema Bank Plc
Consolidated and Separate Financial Statements
For the period ended 31 December, 2022
Statement of financial Position
	Group	Bank
	31-Dec-22		31-Dec-21	31-Dec-22	31-Dec-21
In thousands of Nigerian Naira
Cash and cash equivalents	95,413,076	109,726,640	95,381,132			109,714,649
Restricted Deposit with CBN	386,993,380	313,847,420	386,993,380			313,847,420
Pledged assets	30,616,318	83,723,119	30,616,318			83,723,119
Investment securities:
Fair value through other comprehensive income	6,915,794	5,455,873	6,916,794			5,456,873
Fair Value through profit or loss	20,830,165	38,693,696	20,830,165			38,693,696
Held at amortised cost	321,535,416	129,931,955	313,405,044			118,970,687
Loans and advances to customers	523,995,066	418,864,303	523,995,066			418,864,303
Investment properties	-	0	-			0
Right of Use	997,465	851,249	997,465			851,249
Property and equipment	25,449,667	22,418,542	25,449,667			22,418,542
Intangible assets	2,859,593	2,170,640	2,859,593			2,170,640
Other assets	5,441,400	34,305,993	5,441,400			34,305,993
Deferred tax assets	15,500,694	15,500,694	15,500,694			15,500,694
Total Assets	1,436,548,035	1,175,490,124	1,428,386,717			1,164,517,865
Deposits from banks	19,153,500	40,700,000	19,153,500			40,700,000
Deposits from customers	1,165,764,717	927,471,175	1,165,764,717			927,471,175
Lease Liabilities	31,583	26,879	31,583			26,879
Current tax liabilities	1,998,353	716,120	1,998,353			716,120
Other liabilities	100,286,966	63,697,672	100,217,226			63,637,779
Other borrowed funds	69,612,113	72,731,661	61,442,759			61,601,569
Total Liabilities	1,356,847,231	1,105,343,507	1,348,608,138			1,094,153,521
EQUITY
Share capital	6,633,785	19,287,233	6,633,785			19,287,233
Share premium	8,698,230	8,698,230	8,698,230			8,698,230
Regulatory risk reserve	8,690,790	6,089,871	8,690,790			6,089,871
Retained earnings	13,780,451	11,023,900	13,858,224			11,241,627
Other reserves	41,897,548	25,047,383	41,897,548			25,047,383
EQUITY ATTRIBUTABLE TO	79,700,804	70,146,617	79,778,578			70,364,344
EQUITY HOLDERS OF THE BANK
TOTAL LIABILITIES AND EQUITY	1,436,548,035	1,175,490,124	1,428,386,717			1,164,517,865
CONTINGENTS	152,063,277	118,568,967	152,063,277			118,568,967

The financial statements were authorized for issue by the directors on the 27th of January 2023 and signed on its behalf by: ….

Babatunde Kasali

Chairman

FRC/2017/ICAN/00000016973

Tunde Mabawonku

Chief Financial Officer

FRC/2013/ICAN/00000002097

Ademola Adebise

Managing Director

FRC/2013/ICAN/00000002115

Wema Bank Plc
Consolidated and Separate Financial Statements
For the period ended 31 December, 2022
Statements of changes in equity
Group
In thousands of Nigerian naira (000s)
		Share	Share	Share	Credit	Regulatory	Statutory	SMEIES	Fair value	Retained	Total
		Capital	reserve	premium	risk reserve	risk reserve	reserve	reserve	reserves	earnings	equity
2022
Balance at 1 January 2022	19,287,233	-	8,698,230	781,612	6,089,871	17,654,943	902,759	5,708,069	11,023,900	70,146,617
Dividend Payout									(3,085,957)	(3,085,957)
SMEIS Charge							446,660		(446,660)	-
Profit or loss	-		-	-	-	-	-		12,640,144	12,640,144
Other comprehensive income
Cumulative gain/loss reclassified from reserve on disposal of FVTOCI investments								-
Fair value reserve FVTOCI financial assets	-		-	-	-	-	-	-	-	-
		19,287,233		8,698,230	781,612	6,089,871	17,654,943	1,349,419	5,708,069	20,131,427	79,700,804
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Regulatory risk reserve	-		-		2,600,919	-	-	-	(2,600,919)	-
Transfer to Share reserve	(12,653,448)	12,653,448
Credit risk reserve				-					-
Transfer to Statutory reserve	-		-		-	3,750,057	-	-	(3,750,057)	-
Total contribution and distributions to owners		(12,653,448)	12,653,448	-	-	2,600,919	3,750,057	-	-	(6,350,976)	-
Balance as at 31 December 2022	6,633,785	12,653,448	8,698,230	781,612	8,690,790	21,405,000	1,349,419	5,708,069	13,780,451	79,700,804
2021
Balance at 1 January 2021	19,287,233		8,698,230	781,612	5,536,119	14,974,982	673,148	2,086,782	7,103,647	59,141,753
Dividend Payout									(1,542,978)	(1,542,978)
SMEIS Charge							229,611		(229,611)	0
Profit or loss		-		-	-	-	-	-		8,926,555	8,926,555
Other comprehensive income
Cumulative gain/loss reclassified from reserve on disposal of FVTOCI investments								-
Fair value reserve FVTOCI financial assets	-		-	-	-	-	-	3,621,287	-	3,621,287
		19,287,233		8,698,230	781,612	5,536,119	14,974,982	902,759	5,708,069	14,257,613	70,146,617
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Regulatory risk reserve	-		-		553,752	-	-	-	(553,752)	-
Credit risk reserve				-					-
Transfer to Statutory reserve		-		-		-	2,679,961	-	-	(2,679,961)	-
Total contribution and distributions to owners	-		-	-	553,752	2,679,961	-	-	(3,233,713)	-
Balance as at 31 December 2021
	19,287,233		8,698,230	781,612	6,089,871	17,654,943	902,759	5,708,069	11,023,900	70,146,617