WEMA Bank Plc Unaudited Financial Results for the 3 months ended March 31st, 2017

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LAGOS, NIGERIA – 27th April 2017 – Wema Bank PLC (Bloomberg: Wema NL) (“Wema’ or “the Bank”), announces its unaudited Q1’2017 financial results.

  • Reports 68% growth in Profit After Tax driven by a 27.69% and 78.79% in interest and non-interest income.
  • Launching 1st Digital Bank in Nigeria on May 2nd 2017.

 

Managing Director/Chief Executive Officer’s review

 
   

 

 

Commenting on the results, the MD/CEO, Segun Oloketuyi provided further insights into the performance of the Bank in the period.

 

"Despite the continued challenging macro-economic backdrop, Wema Bank recorded a 34.89% increase in Gross Earnings, rising from N11.24 billion in Q1’2016 to N15.16 billion in the quarter. This was driven by a 27.69% and 78.79% growth in interest income and non-interest income to N12.33 billion and N2.83 billion respectively compared to the prior year. In addition, the Bank continues to benefit from the growing market acceptance and increasing market penetration while leveraging on technology. As a result, the Bank continues to record growth in low cost deposits with a 68.06% increase in Profit before Tax (PBT).

To further strengthen our presence in the retail space, the Bank will launch Nigeria’s 1st Digital Bank named ALAT on May 2nd 2017. ALAT is expected to disrupt the banking landscape and is driven by three pillars – Convenience, Simplicity and Reliability.  

During the quarter, the Bank had its National Long Term Rating affirmed at (BBB-) by Global Credit Rating (GCR), a leading credit rating and research company. We believe this is a testament to our continued commitment to best risk management practices while taking advantage of opportunities, inspite of the challenging economic environment.

In 2017, we continue to re-affirm our strategy – Project LEAP, through the conscious growth of the brand, the continued streamlining of our processes, the deployment of alternate platforms and strategic alliances.

 

      ‘Segun Oloketuyi (MD/CEO)

 

- ENDS –

 

 

 

 

Financial Performance Review

 

 

Income statement (N’bn)

Q1’2017

Q1’2016

(∆)

Gross Earnings

15.16

11.24

34.89

Interest Income

12.33

9.66

27.69

Non-interest income

2.83

1.58

78.79

Operating expense

5.95

5.14

15.72

Profit before Tax

0.85

0.51

68.06

Profit after Tax

0.72

0.43

68.06

Earnings Per Share

7.50 kobo

 4.00 kobo

87.50

 

 

Balance Sheet (N’bn)

Q1’2016

2016FY

(∆)

Total Assets

411.43

421.22

-2.32

Loans and Advances(net)

222.17

227.01

-2.13

Deposits

314.12

320.76

-2.07

Shareholders’ Funds

49.22

48.50

1.49

 

Highlights

 

  • Gross earnings increased by 34.89% (Y-o-Y) to N15.16 billion in Q1’2017 from N11.24 billion in Q1’2016.
  • Profit before Tax (PBT) increased by 68.06% to N0.85 billion in Q1’2017 from N0.51 billion in Q1’2016.
  • Profit after Tax (PAT) rose 68.07% to N0.72 billion in Q1’2017 from N0.43 billion in Q1’2016.
  • Customer deposits (Savings & Current) improved 38.12% and 24.52% (Y-o-y) to N55.36 billion and N78.45 billion respectively, due to increasing market share and brand acceptance.

 

 

Operational Achievements

 

  • GCR affirms Wema’s National Long term rating at (BBB-).
  • Re-opened Kaduna branch. Kano and Bauchi expected to re-open shortly.

 

 

- ENDS -

 

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November 23, 2017
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