Wema Bank declares N3bn profit in 2015

Despite severe macro economy challenges and stringent polices by Central Bank of Nigeria (CBN), Wema Bank Plc today announced a profit before tax of N3.04 billion for the financial year ended December 2015 .

The lender’s profit before tax thus slipped by 1.5 per cent from N3.09 billion recorded in 2014 as its gross earnings rose by 9.5 per cent to N45.9 billion, driven by improved deposit liabilities over the period.

The financial institution impressive financial parameter was achieved through a robust risk management framework as demonstrated by Non-performing Loan (NPL) ratio of 2.67per cent from 2.49 per cent recorded 2014.

Also, Total Assets grew by four per cent from N382 billion to ₦397 billion while Total Deposits up by 10 per cent to ₦285 billion as against ₦259 billion in prior year full results.

Commenting on the results, Managing Director/CEO of WEMA Bank Plc, Segun Oloketuyi, in a statement said, “Our 2015 performance demonstrates our resilience and commitment to continuously deliver value to our stakeholders. The 2015 financial year was a particularly challenging one for the banking sector and economy as a whole.

“This was due to the impact of reduced Government spending, policy changes in foreign exchange administration, a depressed energy sector, declining manufacturing outputs and elements of insecurity, which have continued to take a toll on consumer spending and economic activities.

While these challenges moderated our performance, we have been able to sustain our transformation drive with total deposits for the period growing circa 10% over the prior year to N284.9 billion, gross earnings improving to N46.0 billion from N42.19 billion recorded in 2014, and closed the year with profit before tax remaining stable at N3.05 billion compared to N3.09billion in 2014.

“The Bank also achieved several significant milestones during the financial year. Top of the list was the grant of a National banking license by the Central Bank of Nigeria, authorizing physical presence across the country. Also, the Bank celebrated its 70th anniversary with a brand repositioning exercise which saw it change some core brand elements, giving way to a more vibrant and dynamic look with an increased focus on service excellence. The Bank was also awarded critical certifications of ISO 20000 and ISO 27001 and launched the Card control security feature on its mobile app – a first in the industry.

He added that, “While the figures show some relative improvement year-on-year and significant improvement in the last quarter, the outlook for 2016 performance remains challenging. The Bank has however started the year with a renewed focus on its strategic aspiration of becoming a leading retail bank in Nigeria. The continued implementation of Project L.E.A.P-(the Bank’s Growth Strategy), narrowed our focus and channeled our efforts towards specific opportunities with great potential and symbiotic relationships. This strategy, in its final phase, will continue to guide the Bank’s allocation of resources in 2016.