WEMA BANK : AUDITED FINANCIAL STATEMENT FOR 2021

Wema Bank Plc

Annual Report

31 December 2021

Wema Bank // 2021 Annual Report	For the year ended 31 December 2021
Table of Contents
About Wema Bank	1
Corporate governance	3
Corporate Sustainability report	17
Wema Bank Compliance Risk Framework	43
Customer Complaints Management and Feedback	46
Chairman's statement	49
Directors' report	55
Report of the Audit Committee	65
Statement of Directors' Responsibilities	66
Statement of Corporate responsibility for the Financial Statements	67
Reports of the External Consultant on the Appraisal of the Board	68
Independent Auditor's report	69
Statement of Profit or Loss and other Comprehensive Income	74
Statement of financial Position	75
Statement of changes in equity	76
Statement of Cash Flow	78
Notes to the financial statements	79
Risk Overview	152
Other National Disclosure	201
Financial Summary	202

About Wema Bank

Regarded as Nigeria's most resilient bank and the longest surviving indigenous Financial Institution in Nigeria, Wema Bank Plc has over the years, diligently offered a range of value-adding banking and financial advisory services to the Nigerian public for 75 years. Incorporated in 1945 as a Private Limited Liability Company under the old name of Agbonmagbe Bank Limited, it commenced banking operations in Nigeria in the same year. Wema Bank subsequently transformed into a Public Limited Liability Company (PLC) in April 1987 and was listed on the floor of the Nigerian Stock Exchange (NSE) in January 1990. On February 5, 2001, Wema Bank Plc was granted a universal banking license by the Central Bank of Nigeria (CBN), thus allowing the Bank to provide the Nigerian public with a diverse portfolio of financial and business advisory services.

In 2009, the Bank underwent a strategic repositioning exercise which culminated in a decision to operate as a commercial bank with regional authorization. Upon a successful turnaround, the Bank applied to the Central Bank of Nigeria (CBN) for and was granted a national banking license in 2015.

Wema Bank offers retail banking, SME banking, corporate banking, treasury, trade services and financial advisory to its ever-expanding clientele. Operating a network of over 150 business offices backed by a robust ICT platform across Nigeria, we are committed to long-term sustainability in our business whilst maintaining the highest standards of social responsibility, corporate governance and diversity in our operations.

Our Brand

The Wema Bank brand reinforces our unique proposition to empower lives through innovation. This is a single concept that drives the understanding of the new direction of the Wema Bank Brand. This personifies the behavior and product we create.

To drive this proposition, we develop an intimate relationship with our customers, putting us in a position to recognize their requirements and priorities. Our approach is hinged on partnership, progress, service, innovation and efficiency. We seek to understand our customers' businesses and objectives, such that we can anticipate and meet their needs as they fulfill their financial goals and aspirations.

We are believers in people and societal values.

We believe in the common good and sustainable success.

We measure success not only by what is gained, but by the reciprocal value added to lives and businesses. We strive to create value that endures as well as uplift human dignity and collective welfare.

Success to us implies succeeding along with all our stakeholders, all moving forward and creating value. Our Corporate Philosophy Vision

To be the dominant digital platform in Africa delivering seamless financial services.

Mission

Empowering lives through innovation.

Values

Think Passion Think Partnership Think Progressive Think Plenty Think Play

Corporate Governance

The bank is committed to the highest standards of Corporate Governance and proactively integrates sound corporate governance practices across its operations, ensuring compliance with the requirements of the Corporate Governance Codes of the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) and the Nigerian Code of Corporate Governance (NCCG).

The Bank emphasises the cardinal values of fairness, independence, credibility, transparency and accountability for performance at all levels, thereby enhancing its shareholders' value and protecting the interest of all stakeholders.

At Wema Bank, we consider ourselves trustees of our shareholders and acknowledge our responsibility towards them, to maintain their trust and confidence and safeguard their investment. The Bank's performance on corporate governance is regularly being monitored and reported. Every year the Bank obtains an independent report on the effectiveness of its Board members and the Board. The Board engaged an Independent Governance Consultant to conduct an independent evaluation of the Board's performance in the year 2021 and the result of the evaluation was presented to the Board at the meeting held on March 8, 2022. The report which confirmed the transparency and competence of the Board and its members is contained in this Annual Report and Accounts for the year 2021.

The Bank will continue to entrench the principles of Corporate Governance into every aspect of its business as we are committed to aligning with global best practices.

Governance Structure

Size and Composition of the Board

Our Board has a proper mix of executive and non-executive directors to maintain its independence and separate its functions of governance from management.

The Board is comprised of 12 Directors as stated below:

Executive Directors	5
Non-Executive Directors	7 (inclusive of 2 Independent Director)

Four (4) out of the twelve (12) Board members are women until the resignation of Folake Sanu on March 31, 2021.

Changes on the Board

During the financial year ended December 31, 2021, four directors retired from the Board, and three directors were appointed. Details are as follows:

s/n	Directors	Position	Status/Changes
Folake Sanu	Executive Director	Retired on March 31, 2021
Samuel Durojaye	Non-Executive Director	Resigned on March 22, 2021
Adebode Adefioye	Non-Executive Director	Retired on May 20, 2021
Omobosola Ojo	Independent Director	Retired on August 15, 2021
Emeka Obiagwu	Executive Director	Appointed on April 1, 2021