Wema Bank, one of Nigeria’s premier banks, has declared a 58.8% growth in Profit; on a Total Asset growth of 15.6% for the financial year ended 31 December 2014. This was made known when the Bank released its FY2014 results on the floor of the Nigerian Stock Exchange.
Speaking from the Bank’s headquarters in Lagos, Segun Oloketuyi, Managing Director/CEO of WEMA Bank Plc, said:
It gives me great pleasure to report that Wema Bank continues to record year-on-year improvement in its financial performance. The Bank has improved significantly on its profitability and customer base despite shrinking margins and intense competition. The progress recorded is a result of the continued execution of our three-year growth strategy – Project LEAP.
Specifically for the 2014 financial year, the Bank recorded a growth in Profit before Tax of 58.8% from N1.9 billion in 2013 to N3.09 billion in 2014 on the same capital base, an indication of improved efficiency and better utilization of resources. The Bank recorded a 19% growth in customer deposit volumes largely from the Commercial and Retail segments of the market in spite of the tightened liquidity regime exacerbated by the hike in cash reserve requirement. Our loans and advances to customers increased by 51% guided by a strong Risk Management structure, which is evidenced by the level of non-performing loans at 2.49%.
Wema Bank has become a stronger, more efficient, resilient and customer-focused organization with a robust risk and governance structure. The Bank has realigned its business focus to concentrate on its key area of strength – Retail Banking. We have used technology to our advantage, deploying in-branch solutions, mobile and internet applications and other social media tools to drive customer patronage and to reduce our cost to serve. We have continued to contain our operating expenses despite the increased inflationary environment while at the same time there was significant improvement in our fee-based income lines.
As we turn 70 as the premier indigenous bank in Nigeria, we are glad to unveil a “NEW” Wema Bank that responds faster and better to customers’ needs whilst adapting more quickly to the ever-changing dynamics of the industry. The differentiating factor of the New Wema Bank is our agility in responding to our constantly changing business environment; our firm commitment to being the bank of choice; our relentless determination to continue to raise the standards of customer service; whilst ensuring that we consistently deliver superior returns to all stakeholders.
We are focused on stepping further to becoming one of the most efficient mid-tier banks in Nigeria in no distant future. We are confident that we will sustain the momentum and improve on our profitability and volume growth in 2015.
Balance Sheet & Income Statement
- Total Assets up 16% to N382.6 billion (N330.9 December 2013),
- Gross Loans & Advances to customers up 51% to N149.3 billion (N98.6 billion December 2013)
- Customer Deposits up 19% to N258.9billion (N217.7 billion December 2013)
- Net Interest Income of N18.5 billion up 31% (N13.8 billion December 2013)
- Profit Before Tax of N3.1 billion up 59% (N1.9 billion December 2013)
- Profit After Tax of N2.37 billion up 48% (N1.59 billion December 2013)
- Capital Adequacy Ratio: 18.22% (27% December 2013)
- Loan to Deposit Ratio: 57.65% (45.29% December 2013)
- NPL Ratio: 2.49% (3.87% December 2013)
- Cost to Income ratio 87.72% (95.15% December 2013)
- Net Interest Margin: 5.48% (%7.04 December 2013)
- EPS: 6 kobo ( 8 kobo December 2013)
- Return on Equity 5.42% (3.86% December 2013)
Operational and Reporting highlights
- Launched Visa Credit card offerings
- Launched robust and vibrant New website
- Launched various product offerings aimed at financial inclusion and supporting MSME growth
- Introduced the First Transparent Card (The Crystal Card) in Nigeria in collaboration with Verve
- Financed the RLG Adulawo Technology City, Nigeria’s first indigenous mobile phone manufacturing factory
Download Abridged Report here.