- WEMA Bank Posts N3.01bn Pre-tax Profit for 2017
Wema Bank Plc said it posted a profit before tax of N3.01bn for the year ended December 31, 2017, compared to N3.25bn in 2016, despite reporting an increase in impairment charges from N0.42bn in 2016 to N2.18bn in 2017.
The lender said its gross earnings grew by 20.07 per cent from N54.36bn in the financial year 2016 to N65.27bn in FY2017.
It said the growth was supported by the launch of ALAT, a fully digital bank, enhancing the bank’s already existing alternate platforms, which recorded a combined growth rate of 205.67 per cent in transactions executed with an estimated 30,000 accounts opened monthly.
Commenting on the results, the Managing Director/Chief Executive Officer, Wema Bank, Segun Oloketuyi, said, “Despite the slow start to the year, 2017 recorded significant progress, highlighted by the introduction of the Investor & Exporters 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.”
Oloketuyi said the bank would continue to execute its omni channel business model with precision, as “we made inroads into Kaduna, Bauchi, Kano, Mararaba (Nasarawa), Warri, Aba, Sangotedo (Lagos) and Lagos State University. Furthermore, we recorded increases in the number of strategic partnerships forged and expect this trend to further gain momentum.
He said, “In October, the Bank held its Extra-Ordinary General Meeting towards its proposed Capital Reorganisation Scheme. I am delighted to announce that the exercise has been concluded, with all relevant regulatory approvals in place and duly passed and reflected in the 2017 financial year accounts. As earlier highlighted, the conclusion of the exercise would lead to an efficient balance sheet, as ploughed back profit can be capitalised to grow the business while positioning the Bank for dividend payment in the near term.”
The Chief Finance Officer, Tunde Mabawonku, said the bank’s 2017 result was reflective of its continued resilience despite realities arising from increased impairment charges during the period.
The bank’s earnings from non-interest income remained strong, growing by 24.44 per cent from N9.80bn in 2016 to N12.19bn in 2017 and surpassing its 2017 guidance of a 19 per cent growth rate.
“Risk management remains at the core of our operations, as we leverage on our prudent risk management practices and reported a Non-Performing Loan ratio of 3.52 per cent (2016: 5.01 per cent) while our Capital Adequacy Ratio closed at 14.32 per cent (2016: 11.07 per cent). We remain confident that the bank’s credit rating will continue to remain affirmed at investment grade level,” Mabawonku said.
