Wema Bank reports 20.07% growth in gross earnings
Wema Bank Plc has recorded gross earnings to N65.27 billion from for its financial year ended December 31, 2017, representing 20.07 percent growth compared to N54.36 billion in 2016.
This comes as the bank’s share price rose by 9.09 percent at the close of trading toady (Thursday, April 12) to N0.84 from N.077 per share.
The bank attributed the growth in gross earnings to the launch of ALAT – Nigeria’s first fully digital Bank, which enhanced Wema Bank’s already existing alternate platforms which recorded a combined growth rate of 205.67 percent in transactions executed and with an estimated 30,000 accounts opened monthly.
The bank’s customer deposit rose by 9.76 percent to N49.83 billion from N45.40 billion following improved brand acceptance and market share.
However, the Profit Before Tax (PBT) decreased to N3.01 billion from N3.25 billion in the previous year.
The bank’s earnings from non-interest income remained strong, growing by 24.44 percent to N12.19 billion from N9.80 billion in 2016, surpassing its 2017 guidance of a 19 percent growth rate.
Commenting on the results, the Managing Director/CEO of the bank Segun Oloketuyi, said: “Despite the slow start to the year, 2017 recorded significant progress, highlighted by the introduction of the Investor & Exporters (I&E) window and recovery in oil prices.”
“Our target market is the upwardly mobile youth segment, the young entrepreneurs, the young professionals and the financially excluded, where we continue to leverage incremental innovation and integral capabilities. For us, banking should be simple, reliable and convenient,” he added.
In his own review of the result, Chief Finance Officer, Tunde Mabawonku, noted that the bank’s 2017 result was reflective of its continued resilience despite realities arising from increased impairment charges during the period.
“Risk management remains at the core of our operations, as we leverage on our prudent risk management practices and reported a Non-Performing Loan (NPL) ratio of 3.52 percent against 5.01 percent in 2016, while our Capital Adequacy Ratio, CAR, closed at 14.32 percent compared to 11.07 percent in 2016. We remain confident, that the bank’s credit rating will continue to remain affirmed at investment grade level,” Mabawonku noted.