Home/Press Releases/WEMA Bank Plc Unaudited Financial Result for the quarter ended March 31st, 2018

WEMA Bank Plc Unaudited Financial Result for the quarter ended March 31st, 2018

  • Deposit growth of 20.29% to N09 billion in Q1’2018 from N254.46 billion in FY2017.
  • Gross earnings increases by 5.02% to N07 billion.
  • Awarded the Best Digital Bank in Africa at the 2018 Asian Banker Awards.
  • Secures $15million and N3 billion line of credit from AFDB and DBN.

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 during the period:

Our strategic priorities in 2018 focus on increasing our market share and improving on profitability, given the constraints to deposit growth in 2017. With concerted efforts, the Bank achieved a deposit growth of 20.29% to N306.09 billion (Dec. 2017; N254.46 billion) while interest expense declined by 1.92% from N8.47 billion in Q1’2017 to N8.31 billion in Q1’2018, resulting from the re-pricing of deposits and low cost funding from increased accounts openings.

Despite the declining yield environment, gross earnings increased by 5.20% from N15.28 billion in Q1’2017 to N16.07 billion in Q1’2018. This increase was supported by a 21.07% growth in non-interest income to N3.43 billion (Q1’2017; N2.83 billion), led by a 424.77% growth in net trading income. Profit before Tax (PBT) grew to N0.88 billion (Q1’2017; N0.85 billion), notwithstanding the increase in impairment charges for the period.

Our digital journey elicits excitement as the Bank was named the Best Digital Bank in Africa at the 2018 Asian Bankers Award. The Bank also recorded significant growth in partnerships, particularly in the area of Agency Banking. As at March 2018, the number of our agents had increased by 126.52% across 95 locations within the country. We remain focused, leveraging our platforms and in-built capabilities in lowering our cost of service and growing our share of the market.

As the domestic economy improves, though fraught with global uncertainties, we recognize opportunities amongst key sectors. As a result, the Bank secured credit lines of $15 million and N7.3 billion from the African Development Bank (AFDB) and the Development Bank of Nigeria (DBN) respectively. These funds will help bolster the Bank’s strategic vision of supporting Micro, Small and Medium Enterprises (MSMEs) being the panacea to long-term economic growth.

In the months ahead, we would be developing platforms and supporting initiatives that prioritize the needs of our customers, leveraging technology in solving problems across all sectors.

      ‘Segun Oloketuyi (MD/CEO)

 

Financial Performance Review

 

STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED 31 MARCH, 2018
ASSETS Group Bank Bank Group Bank
30-Mar-18 30-Mar-18 31-Mar-17 31-Dec-17 31-Dec-17
N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 35,346,015 35,372,184 34,486,439 22,427,586 22,425,891
Restricted deposits with CBN 35,878,900 35,878,900 45,661,682 26,495,664 26,495,664
Pledged assets 16,580,843 16,580,843 34,904,238 25,420,137 25,420,137
Loans and advances to customers 215,477,087 215,477,087 222,174,339 215,840,031 215,840,031
Investment securities:
Fair value through other comprehensive income 1,389,454 1,390,454
Held for Trading 40,878,424 40,878,424 4,927,565 10,003,842 10,003,842
Available for sale 153,083 9,565,557 9,566,557
Held to maturity 26,123,384 24,897,782 22,077,200
Held at amortised cost 30,093,858 27,272,206
Investment property 44,287 44,287 359,805 45,671 45,671
Other assets 15,776,566 15,832,622 4,153,052 14,349,673 14,405,728
Property and equipment 17,064,625 17,064,625 16,347,455 17,078,789 17,078,789
Intangible assets 697,573 697,573 370,848 759,092 759,092
Deferred tax assets 21,269,702 21,269,702 21,769,702 21,269,702 21,269,702
TOTAL ASSETS 430,497,333 427,758,905 411,431,592 388,153,526 385,388,304
LIABILITIES
Deposits from banks 10,342,430 10,342,430 48,682,971 26,575,260 26,575,260
Deposits from customers 306,086,383 306,112,552 265,439,621 254,460,881 254,487,050
Current tax liabilities 482,994 482,994 145,167 359,878 359,878
Long term liabilities 40,541,415 37,709,664 22,197,103 39,459,512 36,627,761
Other liabilities 22,884,034 22,874,941 25,742,889 17,682,745 17,646,215
TOTAL LIABILITIES 380,337,256 377,522,581 362,207,751 338,538,276 335,696,164
CAPITAL AND RESERVES
Share capital 19,287,233 19,287,233 19,287,233 19,287,233 19,287,233
Share premium 8,698,230 8,698,230 48,870,107 8,698,230 8,698,230
Regulatory risk reserve 5,222,681 5,222,681 8,402,592 5,846,943 5,846,943
Retained earnings 5,231,190 5,307,437 (38,405,659) 4,089,570 4,166,460
Other reserves 11,720,743 11,720,743 11,069,568 11,693,274 11,693,274
Attributable to equity holders of the bank 50,160,077 50,236,324 49,223,841 49,615,250 49,692,140
TOTAL LIABILITIES AND EQUITY 430,497,333 427,758,905 411,431,592 388,153,526 385,388,304

 

INCOME STATEMENT
FOR THE PERIOD ENDED 31 MARCH, 2018 Group Group Bank Bank
  30-Mar-18 31-Mar-17 30-Mar-18 31-Mar-17
N’000 N’000 N’000 N’000
Gross earnings 16,072,433 15,277,653 16,071,790 15,163,212
Interest income 12,644,450 12,446,291 12,643,807 12,331,850
Interest expense (8,307,413) (8,470,095) (8,307,413) (8,355,939)
Net Interest Income 4,337,037 3,976,196 4,336,394 3,975,911
Net impairment charges (203,231) (11,637) (203,231) (11,637)
Net interest income after impairment charges 4,133,806 3,964,559 4,133,163 3,964,274
Net gain on HFT investment securities 269,661 269,661
Net fee and commission income 1,634,057 2,192,998 1,634,057 2,192,998
Net trading income 1,405,768 267,882 1,405,768 267,882
Other income 118,497 370,482 118,497 370,482
3,427,983 2,831,362 3,427,983 2,831,362
Operating Income 7,561,789 6,795,921 7,561,146 6,795,636
Personnel expenses (2,805,655) (2,581,453) (2,805,655) (2,581,453)
Depreciation and amortisation (639,716) (565,568) (639,716) (565,568)
Other operating expenses (3,232,471) (2,799,336) (3,232,471) (2,799,336)
883,947 849,564 883,304 849,279
Share of profit in associate
Profit before tax 883,947 849,564 883,304 849,279
Income tax expense (119,246) (127,392) (119,246) (127,392)
Profit after tax 764,701 722,172 764,058 721,887

 

Highlights

  • Gross earnings increased by 5.20% (Y-o-Y) to N07 billion in Q1’2018 from N15.28 billion in Q1’2017.
  • Profit before Tax (PBT) increased by 3.53% to N88 billion in Q1’2018 from N0.85 billion in Q1’2017.
  • Profit after Tax (PAT) rose 5.56% to N76 billion in Q1’2018 from N0.72 billion in Q1’2017.
  • Customer deposits improved by 20.29% to N09 billion (Dec. 2017; N254.46 billion), resulting from increasing market share and brand acceptance.

 

Operational Achievements

  • Branch improvement – Babcock University and Warri branch; Opened Aba Branch.

 

Ratios 

  • Net Loan to Deposit Ratio: 70.40% (84.82% as at December 2017)
  • Non-Performing Loans Ratio to 4.01% (3.52% as at December 2017)
  • Capital Adequacy Ratio (CAR): 12.29% (14.32% as at December 2017)
  • Liquidity Ratio: 34.59%.
2018-05-03T15:16:27+00:00
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