Wema Bank grows assets to N421bn as loans to customers rise 23%

The total assets of Wema Plc stood at N421 billion as at December 2016, representing a six percent increase over N397 billion recorded in the corresponding period of 2015, the bank’s financial statement shows.

This is as the bank raised loans to customers within the period to N227 billion, signifying a 23 percent spike from N186 billion obtained in 2015.

Similarly, the bank maintained its Non-Performing Loans at 5.07 percent, as savings grew 27.6 percent to N45.40 billion, from N35.58 billion the previous year.

Gross earnings of the bank in 2016 grew by 17.36 percent to N53.83 billion, from N45.79 billion in 2015. Profit Before Tax (PBT)  and Profit After Tax (PAT) rose by 9.36 percent and 14.1 percent respectively to N3.27 billion and N2.59 billion in 2016 as against  N2.99 billion and N2.27 billion the previous year.

“In our continued bid to constantly review our business model, the bank re-affirmed four key determinants, namely innovation, technology, fostering relationship, risk management and national footprint,” said Adeyinka Asekun, chairman, board of directors of Wema Bank, at the bank’s annual general meeting (AGM) held in Lagos on Wednesday.

“In 2016, and by way of deepening financial inclusion, the bank commissioned its first mobile branch and launched its USSD banking platform called *945# ,” Asekun said.

According to him, the bank is optimistic of performance and profitability in 2017, though without expected headwinds.

“In 2017, we are also placing significant emphasis on ensuring that our customers enjoy quality and convenient banking services,” he stated.

Speaking on the bank’s performance, Segun Oloketuyi, MD/CEO, Wema Bank,  said sound risk management practices remain at the core of the bank’s business model.

“The Bank was not immune to the impact of the economic slowdown, but a more prudent approach was taken in providing for some loans. We closed with a Non-Performing Loan (NPL) ratio of 5.07 percent from 2.67 percent in the prior year. In addition, our coverage ratio remains robust at 100 percent with Capital Adequacy Ratio (CAR) at 11.07 percent, which is above the regulatory minimum of 10 percent,” Oloketuyi said.

He said the bank remains committed to leading and defining how the use of technology shapes the banking landscape in Nigeria and Africa.

“It is in this light and in our bid to offer our customers the best of ‘all worlds’, that I am pleased to announce that Wema Bank has launched ALAT, Africa’s first fully digital bank. With this launch, we believe that the banking landscape is set for a major disruption by Wema Bank, with our offer of simple, convenient and reliable banking experience to members of the public. The launch is intended to enhance our business model, improve efficiency and reduce our cost to serve,” he said.

“We expect the vestiges of the headwinds in the economy to remain in 2017. However, we remain optimistic about the bank’s performance as we leverage on the continued growth of our digital and physical footprints to grow our market share and improve our returns to all stakeholders,” he added.

 

ODINAKA ANUDU