Wema Bank announces 2010 Results ...Audited Financial Results for the Year ended December 31, 2010

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Lagos, Nigeria – Thursday 4, May 2011.

Wema Bank has announced its Group audited account for the twelve-month ended 31 December 2010, as investors heave a sigh of relief with delight.

According to the Managing Director/Chief Executive Officer, Wema Bank, Mr Segun Oloketuyi, “The year 2010 marked a watershed for Wema Bank. During the period, the bank was able to shore up its capital base and achieve considerable progress in cleaning up its loan books.  The emphasis on Recoveries yielded significant results as we were able to record an additional N25billion income from past-due obligations. We will continue to drive down our NPL ratios in the current financial year to acceptable limits.”

He said further “Our financial indicators have also improved significantly driven primarily by growth in our deposit base and increase in Treasury and money market activities and we expect the current trend to continue in the immediate future as the full impact of our strategic repositioning begins to manifest.”

Wema Bank is once again set for business with full recapitalization via the injection of fresh capital, recoveries and the sale of previously provisioned assets to the Asset Management Company of Nigeria (AMCON).

The Bank has also taken a strategic decision to obtain a Commercial banking license with regional scope to ensure that it focuses resources (human and material) in both its niche markets and within the Commercial nerve center of the country.

Regarding the improved Capital position of the Bank, which currently stands at N15.7billion, the MD/CEO has said that “a good portion of the capital raised is going into infrastructure upgrade across the branch network.”  He added that the Bank has commenced the process of improving its Core Banking Applications, and has reached the advanced stage of its Business process re-engineering project.  

Oloketuyi reaffirmed his Banks commitment to implementation of the best Risk Management practice, provision of excellent service delivery and superior returns to all stakeholders.Adding that the Bank’s focus on its Retail, Small Business and Commercial customers will enable it increase its market share within its areas of operation in the country.

Group Financial Highlights

 Balance Sheet and Income statement

 ·          Gross earnings of N21.79billion for the 12 months ended 31 December 2010 (N18.9billion in the 9 months to December 2009);

·          Net operating income of N13.55billion (N10.36billion in the 9 months to December 2009);

·          Loan recoveries income of N21.5billion (N4.2billion expense in the 9 months to December 2009);

·          Profit before tax of N13.14billion (N8.8billion loss in the 9 months to December 2009);

·          66% increase in Total assets and contingents to N235billion; (N152billion December 2009);

·          27% increase in Total Customer deposit liabilities of N120.8billion, from N94billion as at December 2009;

·          Net loans and advances including advances under finance leases of N43.7 billion, an increase of 43% compared to N30.46billion at 31 December 2009;

·          Shareholders’ funds of N15.76billion compared to the negative position of N45.8billion as at 31 December 2009

 Key ratios

·          Liquidity ratio of 95% up from 79% as at December 2009;

·          Capital adequacy ratio of 15.26% from -93.3% the previous year

·          Reduction in NPL ratio from 74% to 56% in 2010

·          Net loan-to-customer deposit ratio of 36%, marginally higher than 32% as at December 2009


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