Banking
Wema Bank Grows Gross Earnings By 16.36% In Q3 2016
By Modupe Gbadeyanka
Despite the harsh operating environment and economic situation in Nigeria, Wema Bank has continued to record a quantum growth. This has made it one of the most trusted financial institutions in the country.
Some have attributed this to the leadership style of its Managing Director, Mr Segun Oloketuyi, who since assuming office, has repositioned the bank into a dependable brand. No wonder the Bank of Uganda was in Nigeria to learn from Wema Bank few weeks ago.
In its unaudited financial results for the nine months ended September 30, 2016, Wema Bank’s gross earnings grew by 16.36 percent to N37.89 billion from N32.57 billion it recorded in the same period last year.
In the results obtained by Business Post, the bank showed a modest improvement in operating indices.
This is despite the domestic environment remaining largely strained.
Nigeria’s August 2016 manufacturing and non-manufacturing PMI data showed underperformance(s) at 42.1 index points and 43.7 index points respectively.
Also, inflation maintained an upward trend from 17.6% (August 2016) to 17.9% (September 2016), though at a slower pace (May – September 2016), as rising interest rate and foreign exchange illiquidity continue to impact prices.
But in all these, Wema Bank maintained its commitment to innovation, introducing *945# and other digital initiatives.
These efforts continue to engender confidence with the bank’s customers, leading to a growth in savings deposits by 18.10% from N35.58 billion as at December 2015 to N42.02 billion as at the end of the period.
The bank optimized its balance sheet, as loans to customers rose by 20.78% to N177.01 billion with interest income expanding by 20.12 percent to N31.93 billion compared to last year while fees and commission increased by 16.79 percent to N4.41 billion.
Explaining how the bank was able to record successes despite the odds, MD/CEO of Wema Bank, Mr Segun Oloketuyi, explained that, “the streamlining of our processes and the leverage on technology led to improving efficiencies and cost optimisation, with operating expense declining by 1.77% Y-o-Y from N17.49 billion in September 2015 to N17.18 billion in September 2016 compared to a general inflation level of 17.9%.”
Mr Oloketuyi noted that, “We will continue to seek opportunities to improve our cost-to-serve through alternative channels and continued strategic improvements of our business model without compromising our service quality.”
“Our prudent risk management model continues to enable us deal with the industry-wide spikes in loan defaults and attendant rise in Non-Performing Loans (NPL).
“The NPL ratio for the Bank stood at 2.99% as at Q3’16 which is below the regulatory threshold of 5%. The coverage ratio for the Bank remained adequate at 124.82%,” he added.
“Going into the final quarter of the year, we do not envisage any material improvement in the operating environment,” he submitted, noting that, “Rather, we expect the gains of the fiscal and monetary policies to impact between Q1 & Q2’ 2017.”
“However, we believe we would close the year with improved performance,” he expressed optimism.
Mr Oloketuyi also declared that, “We are pleased to announce that we just concluded a Tier II capital raise of N20 billion.”
“This will boost our Capital Adequacy Ratio (CAR), currently at 13.36% (pre-capital raise) and supporting our medium term growth plan. More information will be provided once we obtain final regulatory approval,” he explained.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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