Wema Bank Grows Gross Earnings By 16.36% In Q3 2016

Image

wema-bank-admiralty

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.

Share
Related Stories
Image
26-February-2024

Global Finance Names Ecobank Best FX Bank in Nigeria

By Dipo Olowookere Ecobank Nigeria Limited has been named as the Best FX Bank under the Country & Territory Awards category for Nigeria in the 2024 Global Finance’s annual SME Bank Awards. The parent company of the lender, Ecobank Group, on its part, clinched the Best Bank for SMEs in Africa 2024 award, reflecting its unwavering commitment to meeting the specialised needs of SMEs across its diverse markets. At the award ceremony held on Tuesday, February 20, 2024, at the Glaziers Hall in London, the United Kingdom, Global Finance explained that the Nigerian subsidiary of the leading pan-African Banking Group

Image
21-February-2024

FG to Restructure, Recapitalise Bank of Agriculture for Better Value

By Adedapo Adesanya The federal government has revealed plans to recapitalise and restructure the Bank of Agriculture (BOA) to bolster Nigeria’s agricultural sector and achieve national food security. This was one of the core revelations made by the Vice President, Mr Kashim Shettima, during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. He said there is a central role that BOA could play in achieving national food security, citing its extensive branch network across all senatorial districts in the country. Mr Shettima, however, expressed concern about the

Image
30-January-2024

Ecobank Offers SuperSavers Account Holders 9% Interest Rate

By Modupe Gbadeyanka Holders of Ecobank SuperSavers accounts will enjoy an interest rate of 9 per cent, the financial institution has said. The Head of Premier Banking and Wealth Management at Ecobank Nigeria, Ms Ayodele Osolake, explained that this high-yield savings account type is tailored for customers who wish to maximize their returns on savings while benefiting from a customer-focused banking experience. The 9 per cent interest is a six-month reward programme that runs between January and June 2024, and it is part of the lender’s strategic initiatives to continuously encourage a savings culture enabling customers of the bank to

Image
23-January-2024

Stanbic IBTC Shines at 2023 International Finance Awards

By Aduragbemi Omiyale Stanbic IBTC Holdings Plc was the star of the 2023 International Finance Awards after its subsidiaries were recognised across nine categories of the prestigious event recently. Business Post gathered that Stanbic IBTC Bank garnered recognition in four categories, including Best SME Bank in Nigeria 2023, Best Trade Bank in Nigeria 2023, Best Research House in Nigeria 2023, and Best Custodian Bank in Nigeria 2023. Not left out was Stanbic IBTC Pension Managers, the country’s largest pension fund administrator, which clinched the ‘Best Pension Fund Management Company in Nigeria 2023’ award, recognizing its consistent double-digit returns, transparent operations,

More Stories
Image
19-December-2019

FG, States, Councils Share N635.8bn in November

By Adedapo Adesanya The Ministry of Finance, Budget and National Planning has revealed that the Federal, States and Local Governments of the federation shared the sum of N635.8 billion for the month of November. This was disclosed by Mr Isa Dutse, the Permanent Secretary of the ministry while addressing newsmen after the Federation Account Allocation Committee (FAAC), meeting held in Abuja on Wednesday. He explained that the amount shared included Value Added Tax (VAT), exchange gain and Forex Equalisation. According to Mr Dutse, the gross statutory revenue generated for the month was N491.8 billion, which was lower than N596.04 billion

Image
24-September-2019

NASD Exchange Closes Flat amid 50.89% Drop in Turnover

By Adedapo Adesanya The first trading day of the week at the NASD Over the Counter (OTC) Securities Exchange closed flat on Monday, September 23, 2019 as both the NASD Security Index (NSI) and market capitalization remained unchanged from their quoted data last Friday. The market capitalization saw no increase nor decrease as it ended on Monday at N505.91 billion while the NASD Security Index (NSI) retained 704.19 points as it was quoted at the end of trading on Friday at the market. However, the total volume of trades went down by 51,081 units or 50.89 percent to 49,300 units

Image
25-January-2018

MainOne Partners Firm on Connectivity to Research, Educational Bodies

By Dipo Olowookere Following a highly competitive and non-discriminatory bidding process involving leading communications operators in Africa, leading Connectivity and Data Center solutions provider, MainOne has emerged winner of a 15-year contract with the West and Central African Research and Education Network (WACREN) to provide high-speed bandwidth services. WACREN, the regional research and education network (REN) that facilitates interconnections between national RENs in West and Central Africa will use MainOne to provide high-speed backbone data services including internet access to schools, colleges and universities, research and the general academic community across West and central Africa. This long-awaited contract was initiated

Image
18-May-2022

Buga Keeps Kizz Daniel on Spotify’s Top Artist Chart for 13th Week

By Dipo Olowookere For the 13th straight week, Afro-beat act, Kizz Daniel, has remained on Spotify’s Top Artist Chart courtesy of his latest song of the moment, Buga, which features Tekno. In the latest chart released by the audio-streaming platform, Kizz Daniel, who has since moved on from his issues with his former record label, G-Worldwide, was number one. He was followed by Victony, Burna Boy, BNXN (formerly known as Buju) and Rema. A look at this chart revealed that Tekno was the biggest climber at number, while Ktizo was the highest new entry for the week at number 127.

Image
18-January-2019

Access Bank Targets Sale of N150b Green Bonds

By Modupe Gbadeyanka A total of N150 billion green bonds are expected to be issued by 2021 by Access Bank, with the first tranche of N15 billion to be floated in the first quarter of this year. If successful, Access Bank will become the first company to issue a corporate green bond in the country. In 2017, the Nigerian government sold the first green bond worth N10.7 billion and in 2018, the Securities Exchange Commission (SEC) and the FMDQ OTC Securities Exchange launched the Nigerian Green Bond Market Development Programme to encourage private companies to sell climate-related debts. A green

Image
22-August-2018

International Breweries to Commission $250m Sagamu Plant August 28

By Dipo Olowookere Tuesday, August 28, 2018, has been fixed for the commissioning of a new factory constructed by one of the leading brewers in Nigeria, International Breweries Plc. The new plant, believed to have gulped $250 million, is situated at Km 3, Flowergate Industrial Scheme, Sagamu-Abeokuta Expressway, Ogun State. Expected next Tuesday to commission the factory, which is believed to be the biggest plant of the firm in West Africa, is President Muhammadu Buhari. Commenting ahead of the launch, Managing Director of International Breweries, Mrs Annabelle Degroot, stated that the plant will provide a great opportunity to engage qualified

Image
04-February-2019

Olusanya Resigns from Dangote Cement Board

By Dipo Olowookere The exit of Mr Olusegun Olusanya from the board of directors of Dangote Cement Plc has been announced by the firm. The cement maker disclosed on Monday Mr Olusanya informed the board that he was no longer interested in being part of it. No reason was given in a statement issued by the leading cement manufacturer for the decision of Mr Olusanya. With this development, Mr Olusanya ceases to be a member of the board of Dangote Cement. Before now, Mr Olusanya was sitting on the Dangote Cement board as an independent non-executive director. “The board of

Image
31-August-2021

Kwik Delivery Unveils JJ Okocha, Fehinty as Ambassadors

By Adedapo Adesanya French-Nigerian technology startup, Kwik Delivery, Tuesday unveiled two brand ambassadors, Nigerian football legend Jay Jay Okocha and power biker-lady Fehinty as it strives to further imprint its presence in the domestic market. Speaking on his partnership with Kwik, Jay Jay Okocha said, “Since its launch in 2019 in Lagos, Kwik Delivery has become synonymous with swiftness, efficiency, passion, innovation and drive. Kwik Delivery is all about enabling Nigerians to succeed in their business endeavours and to win. “All qualities and virtues in which my fans and I fully recognize and that I can proudly defend as Kwik’s

Ad
Ad
Recent Stories
Image
28-February-2024

Dangote Cement Wins Environmental Sustainability Award

By Aduragbemi Omiyale NatureNews has announced Dangote Cement Plc as the winner of the 2023 NatureNews Environmental Sustainability Award at its 3rd anniversary themed Climate Change and Energy Transition in Nigeria. At the Anniversary Lecture and Presentation of the Hero of Environmental Actions for Development (HEAD) held on Tuesday at the Shehu Musa Yar’Adua Centre, Abuja, the news platform said Dangote Cement was nominated for the category following a thorough screening by eminent professionals. The Publisher and Editor-in-Chief of NatureNews, Mr Aliyu Akoshile, disclosed that during the screening, it was discovered that the cement maker had deployed cutting-edge technology to

Image
28-February-2024

Nigeria’s Stock Market Stands Still to Honour Ogunbanjo’s Legacy

By Aduragbemi Omiyale The stock market in Nigeria stood still for the late former chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbanjo, on Tuesday, February 27, 2024. The day was set aside to pay homage to the enduring legacy of the esteemed luminary, who died in a helicopter crash in the United States a few weeks ago along with the group chief executive of Access Holdings, Mr Herbert Wigwe, his wife and son. The NGX Group held an Afternoon of Tributes and Closing Gong Ceremony yesterday for him in collaboration with the Coronation Group. In a poignant

Image
28-February-2024

Fans Anticipate ‘Return of Maleeka (Atupa)’ by Mobolaji Samuel

By Modupe Gbadeyanka Some movie lovers are already calling on a movie producer in Nigeria, Ms Mobolaji Samuel, to release the sequel to her captivating film, Maleeka, Return of Meleeka (Atupa). The quest to see the second part of the flick is due to the exploits of the Nollywood filmmaker in the first part. However, she has called for calm, assuring her fans that the release date of her latest work of art would be announced very soon. Speaking recently on the Return of Maleeka (Atupa), the charming movie maker described the film as a story of faith and resilience,

Image
28-February-2024

FG Selects Learning Community Managers for 3MTT Initiative

By Modupe Gbadeyanka The federal government has selected Learning Community Managers for the 3MTT Initiative for all 36 states of the federation and the Federal Capital Territory (FCT). The managers were picked for the programme by the Federal Ministry of Communications, Innovation & Digital Economy, which is handling the initiative. Recall that the government secured N1 billion in partnership with IHS Nigeria to support the 3MTT Learning Community. The selection of Learning Community Managers marks a significant milestone in the government’s efforts to empower Nigeria’s tech talents. These individuals will play a crucial role in managing and assisting participants in

Image
28-February-2024

Renowned Embryologist Dr Marta Jansa Perez Visits Bridge Clinic Nigeria

By Modupe Gbadeyanka A renowned embryologist, Dr Marta Jansa Perez, has visited the Bridge Clinic Nigeria in Lagos, reinforcing its commitment to excellence in reproductive healthcare. Ms Perez is the Director of Embryology at Bridge Clinic London. Her visit to the Nigerian affiliate of the foremost healthcare organisation is a testament to the partnership between the two clinics, opening new avenues for the exchange of expertise and resources. The health practitioner arrived at Bridge Clinic Nigeria on Monday, February 19, 2024. Her week-long visit was meticulously structured around training, process and quality improvement, research and development, and guidance on best

Image
28-February-2024

Zero Routine Gas Flares and Delta Communities

By Jerome-Mario Utomi It is common knowledge that in pursuit of meeting the targets of 20 per cent (unconditional) and 47 per cent (conditional) greenhouse gas emission reduction as contained in the Nationally Determined Contribution under the Paris Accord reportedly signed by the President Bola Tinubu administration, the Nigerian National Petroleum Company Limited/TotalEnergies joint venture recently achieved zero routine gas flare in all its assets. While it is obvious that “the significance of this achievement is that the last routine flare volume of about 12MMscf/d (12 million standard cubic feet per day) of gas has now been eliminated giving rise

Image
28-February-2024

70 Active Stanbic IBTC Bank Customers Grab N7m in January Draws

By Aduragbemi Omiyale The sum of N7 million has been won by 70 active customers of Stanbic IBTC Bank in its ongoing Reward4Saving Promo. The money was won in the January 2024 draw, bringing the total number of beneficiaries since the inception of the promo in 2021 to 1,424 valued at N234 million, a statement from the company said. The Reward4Saving Promo was created to foster disciplined saving habits among Nigerians, offering them rewards for achieving specified savings targets. In the January draw, 10 winners were selected from each of the seven business regions operated by the bank in Nigeria,

Image
28-February-2024

Firms in Nigeria to Pay Annual Levy for Hiring Foreigners

By Aduragbemi Omiyale A new tax known as Expatriate Employment Levy (EEL) has been introduced by the federal government and it is to be paid by companies, which hire foreigners to work in Nigeria. The scheme was launched on Tuesday in Abuja by President Bola Tinubu and it is to close wage gaps between expatriates and Nigerian workers. The government explained that the policy aims to find a balance between leveraging foreign expertise and fostering local talent in Nigeria’s job market through the EEL, emphasising that it is not to discourage foreign investments. It was stressed that the level would

Image
28-February-2024

Senate Advocates Introduction of Food Stamps in Nigeria

By Adedapo Adesanya The Senate has urged the federal government to introduce the Nigerian version of the “food stamps programme” as an interim intervention to cushion the effects of food shortages in the country. This followed the adoption of a motion on the Introduction of Food Stamps in Nigeria as an Interim Measure to Address Imminent Food Insecurity in the country, by Mr Ali Ndume, the Senate Chief Whip at plenary on Tuesday. Presenting the motion, Mr Ndume said that in other countries, like the United States, food stamps were government-issued coupons that had been in use since 1939. “This is

Image
28-February-2024

Trucks Transit Parks Reflects Industry Impact, Future Opportunities

By Modupe Gbadeyanka A leading technology company specializing in mobility solutions, Trucks Transit Parks (TTP) Limited, is marking its third year of operations. As part of this, the firm is reflecting on the significant impact it has made in the maritime and logistics industry. TTP, since its inception to revolutionize the maritime and logistics sector in Nigeria through truck mobility solutions powered by technology, has emerged as a key player in driving port terminal efficiency, reducing traffic congestion, and creating new business opportunities within the Apapa port economic zone. “Our third anniversary of operations provides us an opportunity to reflect