Wema Bank recorded a sharp decline in revenue generated for the year 2020 on the back of the COVID-19 pandemic, its recently released financial statement shows.
According to the bank’s financial statements released on Monday, the bank recorded a N13.51 billion shortfall in revenue for year 2020, as it generated a total sum of N81.38 billion falling short of the N94.89 billion recorded during the same period in 2019.
During the same period under review, the interest income fell to N64.55 billion in 2020, falling short of the N70.68 billion it generated in the corresponding 2019 period.
According to the financial statements, Interest Expense decreased to N33.70 billion between January and December of last year, down from N44.69 billion in full-year 2019.
This had an impact on operating income, which fell to N42.04 billion during the period under review, falling short of the N44.06 billion reported in the same period the previous year.
This also affected the company’s profit before tax of 2020 which was declined to be N5.93 billion, against the N6.70 billion recorded in the corresponding period of 2019.
Following the same path of profit after tax rose to N4.57 billion in full-year of 2020 and failing to surpass the N5.1 billion, Wema Bank recorded in its financials for 2019 full year.
Wema Bank’s earnings were largely impacted by its attempt to restructure loans and offer moratoriums to customers who were indebted to the bank, according to Central Bank of Nigeria guidelines.