With technology, new product, e-business, Wema Bank positions for success

Having scaled through the challenging operational environment in 2015, Wema Bank Plc, Nigeria’s longest surviving indigenous bank is positioned for greater success in 2016.

To achieve this, the bank will continue to use technology in its operations. More importantly, the bank has started to develop new products that will give it an edge in the alternate channels space. It has also restructured its e-business function as a focal point for its strategy to increase market in the youth segment.

In 2016, strategic partnerships will be crucial for the bank. Towards the end of 2015, the bank commenced relationships with key players in various business segments and these relationships are expected to add significant value to the bank in terms of brand equity and the bottom line.

Adeyinka Asekun, chairman of the bank expects government policies in 2016 to address key areas that stifle meaningful intermediation especially risk, long-term funding and the continued erosion of margins.

He said increased industry competition with greater focus on the retail segment would be the agenda for 2016. The bank aligned its retail strategy to ensure that it is well positioned in 2016 to succeed in this area.

In terms of talent, Asekun said the Bank has not relented in the quest to attract and retain the best hands available, adding that this remains crucial in 2016. Though the economy is stifled by a comatose oil industry, he believes there are significant opportunities opening up on the domestic front.

“Our aim will be to harness talents from various fields to add significant value to us as a bank in terms of brand equity and the bottom line”, Asekun said.

However, Wema bank’s total assets grew by four percent to N397 billion at the end of the financial year 2015 from N382 billion in the preceding year.

The bank’s deposits also rose from N259 billion in 2014 to N285 billion in 2015 financial year ended December 31 2015, representing 10 percent increase.

“Despite macroeconomic and regulatory volatilities, the bank’s loan portfolio stood at N186 billion in the year, an appreciable 25 percent growth over our performance in 2014,” Asekun said at the annual general meeting in Lagos.

According to him, this reflects this the simultaneous growth in interest and non-interest income in spite of the impact of higher Cash Reserve Requirement (CRR) on interest income for the year and net effect of lower Commission on Turnover (COT) charges on fees income.

He said the bank’s earning capacity remained robust during the year despite the constraints on asset growth in 2015 due to the sustained restrictive operating environment.

Gross earnings increased by 8 percent to N45.9 billion in 2015. The headline performance reflects the simultaneous growth in interest and non-interest income, which grew by 4.6 percent and 26 percent respectively.

However, profit before tax marginally fell by 1.6 percent to N3 billion from N3.1 billion reported in the previous year, given the impact of the Treasury single Account (TSA), depressed international crude market, ever thinning margins and rising costs of operations.

“As we go into 2016, I am confident that we are well positioned for better success. Our national authorisation will allow us to significantly scale up our operations across the country. However, our investment decisions will be long-term in order to achieve more efficient operations, which enable us deliver superior returns to you, our shareholders in 2016.”

HOPE MOSES-ASHIKE