Wema Bank Grows 2016 Profit by 13.66% as Wema Brand Gains More Acceptance

By Modupe Gbadeyanka

It is without doubt that the 2016 financial year was a rather challenging macroeconomic environment for many businesses to operate under.

But despite this, Wema Bank continued to record improved performances, as its gross earnings in 2016 grew by 17.56 percent from N45.79 billion in 2015 to N53.83 billion.

Similarly, its profit before tax (PBT) recorded a rise by 9.36 percent to N3.27 billion from N2.99 billion declared in 2015.

Also, the financial institution’s profit after tax (PAT) saw an improvement by 13.66 percent to N2.59 billion against N2.27 billion in 2015.

During the period under review, the bank’s total assets as at December 31, 2016 stood at N421 billion representing a 6 percent increase over the N397 billion recorded in the corresponding period of 2015 as loans to customers rose by 23 percent to close the 2016 year at N228 billion from N186 billion recorded in 2015.

Impressively, Wema Bank, during the year, maintained its Non-Performing Loans (NPL) at 4.01 percent, below the regulatory limit of 5 percent, despite the challenging macro-economic environment.

Furthermore, the bank continues to record growth in its retail deposit drive, as the Wema brand gains continued acceptance.

Savings deposit grew by 27.6 percent from N35.58 billion to N45.40 billion while current account deposit grew by 28.14 percent from N17.45 billion to N22.36 billion.

Commenting on the results, Chairman of Wema Bank, Mr Adeyinka Asekun, noted that, “In our continued bid to constantly review our business model, the bank re-affirmed four key determinants namely Innovation and Technology, Fostering Relationship, Risk Management and National footprint.

“We strongly believe that these success factors would aid the attainment of our strategic objective, bordering on Expertise, Excellence and Efficiency (3Es).

“The Bank will continue to optimise its balance sheet whilst streamlining our processes and driving efficiency. Furthermore, the Bank will continue to focus on value creation for our esteemed customers and particularly our shareholders.”

He said further that in the course of the 2016 financial year, Wema Bank recorded significant success in various areas worth enunciating.

According to him, the bank launched its mobile branch as part of its Financial Inclusion drive, stressing that “in spite of the tremendous challenges we faced as a bank in 2016, the bank maintained both its international and domestic Long-Term National Rating at (BBB-) with a Stable Outlook.

“We remain investment grade and this is particularly important as we seek to attract new investment into the bank to allow us grow our business in 2017.”

Speaking on the firm’s expectations for 2017, Mr Asekun said, “We are also placing significant emphasis on ensuring that our customers enjoy quality and convenient banking services. Our commitment to delivering quality service has never been greater.”