Wema Bank has proved its mettle in the key metrics of total assets growth, customer deposit growth, profit after tax growth, loan book growth, return on average equity and cost to income ratio, in the Nairalytics 2022 first quarter report.
According to the special report on the financial performance of quoted Nigerian banks, re-engineered banks, including Wema Bank and Unity Bank, are now leading in the top five ranking having dominated the efficiency, deposit, and profitability metrics, especially newly, among others.
According to the data from Nairalytics – the research arm of Nairametrics, the twelve banks reviewed posted an aggregate profit after tax of N275.27 billion in Q1 2022, representing a 14.7% increase compared to N239.95 billion posted in the corresponding period of 2021.
The report noted that the banks were able to record an improved bottom line despite the Apex Bank’s monetary policy leaning towards a dovish direction to keep interest rates low.
Recall that the Central Bank of Nigeria (CBN), after its latest monetary policy committee (MPC) meeting raised the benchmark interest rate, MPR, from 11.5% to 13%, implying that banks could be seeing a rise in their interest earnings going forward.
The report read in part, “For this analysis, the Q1 2022 results of the following banks were tracked: Access Holdings, FBN Holdings, FCMB, Fidelity Bank, Wema Bank GT Holding, Stanbic IBTC, Sterling Bank, Union Bank, UBA, Unity Bank, and Zenith Bank. Ecobank was not considered in the analysis as the bank operates efficiently in other markets besides Nigeria.
“The key metrics considered in these analyses are total asset growth, loan book growth, profit growth, cost–to–income ratio, and return on average equity.
“The twelve banks under our radar posted an aggregate profit after tax of N275.27 billion in Q1 2022, which is 14.7% higher than the N239.95 billion recorded in the previous year (Q1 2021).
“The leading banks by Profits After Tax (PAT) growth were; Wema Bank on the first spot with +119% growth, First bank occupying the second position at +108%. Others are; third position – Sterling Bank +47.9%, fourth position – FCMB (+44.6%) and fifth Position – FBNH +33.9%.
“Upshots: In terms of net profit, Zenith Bank recorded the highest profit after tax of N58.19 billion. In terms of growth, Wema Bank topped the list with a 119% growth in its bottom line while First Bank recorded a 107.7% growth.”
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