WEMA BANK : QUARTER 2 - FINANCIAL STATEMENT FOR 2023

WEMA BANK PLC

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

Contents

Page

Statements of profit or loss and other comprehensive income	1
Statements of financial position	2
Statements of changes in equity	3
Statements of Prudential Adjustments	4
Statements of cash flows	5

Wema Bank Plc

Consolidated and Separate Financial Statements

For the period ended 30 June, 2023

Statements of Profit or loss and other Comprehensive Income
				Group				Bank
In thousands of Nigerian Naira		3 Months	6 Months	6 Months	12 Months	3 Months	6 Months	6 Months	12 Months
	Notes 30-Jun-23	30-Jun-23	30-Jun-22	31-Dec-22	30-Jun-23	30-Jun-23	30-Jun-22	31-Dec-22
		50,035,272	89,630,928	60,295,161	133,053,047	49,744,486	89,092,597	59,594,190	131,083,309
Interest income	7	42,770,341	76,649,121	50,450,043	108,036,632	42,479,555 76,110,790 49,749,072 106,066,894
Interest expense		(24,350,256)	(43,778,566)	(27,235,337)	(53,806,696)	(24,086,584)	(43,251,227)	(26,509,894)	(51,991,333)
Net interest income	7	18,420,085	32,870,556	23,214,706	54,229,936	18,392,971	32,859,563	23,239,178	54,075,561
Net impairment loss on financial assets	11	(1,287,454)	(1,395,261)	(625,056)	(4,808,387)	(1,287,454)	(1,395,261)	(625,056)	(4,808,387)
Net interest income after
impairment charge for credit losses		17,132,631	31,475,295	22,589,650	49,421,549	17,105,517	31,464,302	22,614,122	49,267,174
Net gain on FVTPL investment securities		982,126	982,126	1,462,883	1,531,277	982,126	982,126	1,462,883	1,531,277
Net fee and commission income	8	5,092,949	10,027,680	7,477,325	16,586,216	5,092,949	10,027,680	7,477,325	16,586,216
Net trading income	9	57,834	303,201	(290,975)	4,001,989	57,834	303,201	(290,975)	4,001,989
Other income	10	1,132,022	1,668,799	1,195,885	2,896,933	1,132,022	1,668,799	1,195,885	2,896,933
		7,264,931	12,981,807	9,845,118	25,016,415	7,264,931	12,981,807	9,845,118	25,016,415
Operating income		24,397,562	44,457,102	32,434,768	74,437,964	24,370,448	44,446,109	32,459,240	74,283,589
Personnel expenses	12	(6,337,371)	(11,870,762)	(9,545,334)	(21,332,578)	(6,337,371)	(11,870,762)	(9,545,334)	(21,332,578)
Depreciation and amortization	13b	(1,481,251)	(2,734,492)	(1,993,501)	(4,545,925)	(1,481,251)	(2,734,492)	(1,993,501)	(4,545,925)
Other operating expenses	13a	(10,708,118)	(17,793,243)	(14,792,559)	(33,675,500)	(10,707,974)	(17,790,743)	(14,790,059)	(33,659,078)
Profit before tax		5,870,822	12,058,605	6,103,374	14,883,962	5,843,852	12,050,112	6,130,346	14,746,009
Income tax expense	24	(759,701)	(1,566,515)	(827,597)	(3,531,981)	(759,701)	(1,566,515)	(827,597)	(3,531,981)
Profit for the year		5,111,121	10,492,090	5,275,777	11,351,981	5,084,151	10,483,597	5,302,749	11,214,028
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		-	-	-	4,130,260	-	-	-	4,130,260
		-	-	-	4,130,260	-	-	-	4,130,260
Items that will be subsequently reclassified to profit or loss
Net change in fair value of debt instruments		106,729	106,729	-	-	106,729	106,729	-	-
FVOCI (net of tax)		-	-	-	-	-	-	-	-
						-
Other comprehensive income for the year		106,729	106,729	-	4,130,260	106,729	106,729	-	4,130,260
Total comprehensive income for the year		5,217,849	10,598,819	5,275,777	15,482,241	5,190,880	10,590,326	5,302,749	15,344,288
Profit attributable to:
Equity holders of the Bank		5,111,121	10,492,090	5,275,777	11,351,981	5,084,151	10,483,597	5,302,749	11,214,028
Total comprehensive income for the year		5,217,849	10,598,819	5,275,777	15,482,241	5,190,880	10,590,326	5,302,749	15,344,288
Earnings per share-basic	14	159.2	163.2	82.0	88.3	158.0	163.0	82.4	87.2

Wema Bank Plc
Consolidated and Separate Financial Statements
For the period ended 30 June, 2023
Statements of financial Position
		Group		Bank
In thousands of Nigerian Naira	Notes	30-Jun-23		31-Dec-22		30-Jun-23	31-Dec-22
Cash and cash equivalents	15	187,265,393	96,294,862	187,233,064			96,262,918
Restricted Deposit with CBN	15b	430,993,380	386,993,380	430,993,380			386,993,380
Pledged assets	16	147,445,809	30,616,318	147,445,809			30,616,318
Investment securities:
Fair value through other comprehensive income	17a	21,584,996	11,056,230	21,584,996			11,056,230
Fair Value through profit or loss	17b	12,127,210	20,933,741	12,127,210			20,933,741
Held at amortised cost	17c	390,056,591	320,922,935	381,918,547			312,792,563
Wema funding SPV Plc	17d	-	-	1,000			1,000
Loans and advances to customers	18	627,005,593	521,430,696	627,005,593			521,430,696
Right of Use	27	960,904	997,465	960,904			997,465
Property and equipment	19	30,911,019	25,449,667	30,911,019			25,449,667
Intangible assets	20	3,178,803	2,859,593	3,178,803			2,859,593
Other assets	22	16,854,927	11,326,855	16,854,927			11,326,855
Deferred tax assets	21	12,983,232	12,983,232	12,983,232			12,983,232
Total Assets		1,881,367,856	1,441,864,974	1,873,198,483			1,433,703,658
Deposits from banks	23	109,578,378	19,153,500	109,578,378			19,153,500
Deposits from customers	23	1,392,847,276	1,165,934,019	1,392,847,276			1,165,934,019
Lease Liabilities	27	34,236	31,583	34,236			31,583
Current tax liabilities	24	1,566,515	1,061,974	1,566,515			1,061,975
Other liabilities	25	212,348,886	103,685,466	212,274,648			103,613,727
Other borrowed funds	26	75,708,293	69,455,531	67,541,875			61,286,178
Total Liabilities		1,792,083,584	1,359,322,073	1,783,842,928			1,351,080,981
EQUITY
Share capital	28	6,429,078	6,429,078	6,429,078			6,429,078
Share premium	28	8,698,230	8,698,230	8,698,230			8,698,230
Regulatory risk reserve		11,801,426	11,801,425	11,801,426			11,801,426
Retained earnings	28	18,084,248	11,449,605	18,155,529			11,529,379
Other reserves	28	44,271,291	44,164,563	44,271,292			44,164,564
Equity attributable to equity holders of the bank		89,284,273	82,542,901	89,355,555			82,622,677
Total liabilities and equity		1,881,367,857	1,441,864,974	1,873,198,483			1,433,703,658
CONTINGENTS		228,996,761	152,455,290	228,996,761			152,455,290

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

Dr. (Mrs) Oluwayemisi Olorunshola		Moruf Oseni
Chairman		Managing Director
FRC/2023/PRO/DIR/003/492710		FRC/2013/NIM/00000002114

Tunde Mabawonku

Executive Director

FRC/2013/ICAN/00000002097

Wema Bank Plc

Consolidated and Separate Financial Statements

For the period ended 30 June, 2023

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
2023
Balance at 1 January 2023	6,429,078	12,858,155	8,698,230	781,612	11,801,426	19,337,047	1,349,419	9,838,329	11,449,605	82,542,902
SMEIS Charge							-		-	-
Profit or loss		-		-	-	-	-	-		10,492,090	10,492,090
Other comprehensive income
Cumulative gain/loss reclassified from reserve on disposal of FVTOCI investments							-
Fair value reserve FVTOCI financial assets	-		-	-	-	-	-	106,729	-	106,729
Transfers within equity:
Regulatory risk reserve					-				-
Transfer to Share reserve (see note 28)	-	-
Credit risk reserve
Transfer to Statutory reserve	-	-				-			-
		6,429,078	12,858,155	8,698,230	781,612	11,801,426	19,337,047	1,349,419	9,945,058	21,941,695	93,141,721
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Dividend Payout									(3,857,447)	(3,857,447)
		-	-	-	-	-	-	-	-	(3,857,447)	(3,857,447)
Balance as at 30 June 2023	6,429,078	12,858,155	8,698,230	781,612	11,801,426	19,337,047	1,349,419	9,945,058	18,084,248	89,284,274

2022

Balance at 1 January 2022

SMEIS Charge

Profit or loss

Other comprehensive income

Cumulative gain/loss reclassified from reserve Fair value reserve FVTOCI financial assets Transfers within equity:

Regulatory risk reserve

Transfer to Share reserve (see note 28) Credit risk reserve

Transfer to Statutory reserve

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
-		-	-	-	-	-		11,351,981	11,351,981
									-
-		-	-	-	-	-	4,130,260	-	4,130,260
				5,711,555				(5,711,555)
(12,858,155)	12,858,155
					1,682,104			(1,682,104)

		6,429,078	12,858,155	8,698,230	781,612	11,801,426	19,337,047	1,349,419	9,838,329	14,535,563	85,628,859
Contributions by and distributions to owners									(3,085,957)	(3,085,957)
Dividend Payout
		-	-	-	-	-	-	-	-	(3,085,957)	(3,085,957)
Balance as at 31 December 2022
	6,429,078	12,858,155	8,698,230	781,612	11,801,426	19,337,047	1,349,419	9,838,329	11,449,605	82,542,902