BUSINESS
Wema Bank announces 10.5% PBT in H1
Wema Bank Plc has announced Profit Before Tax (PBT) of 10.5 per cent in unaudited financial results for the six months ended June 30, 2017 (H1’2017) to N1.4 billion as against N1.297 billion recorded in six months ended June 30, 2016 (H1’ 2016).
The unaudited results released on The Nigerian Stock Exchange (NSE) on Tuesday showed gross earnings increasing by 25.17 per cent from N24.26 billion H1’2016 to N30.37 billion in H1’2017.
Interest income rose by 26 per cent to N25 billion in H1’2017 as against N20.2 billion in H1’ 2016 while interest expenses closed the half year at N16.97 billion in H1’2017, an increase of about 46 per cent from N11.63 billion in h1’2016.
From the balance sheet position, total assets dropped about nine per cent to N385.97billion from N424 billion recorded in 2016. The Bank’s Capital Adequacy Ratio (CAR) increased to 12.71 per cent in H1’2017 from 11.06per cent, as at financial year ended 2016, whilst Non-performing Loan (NPL) remained below the five per cent threshold of Central Bank of Nigeria at 4.90 per cent as at H1’2017.
Commenting on the results, the Chief Executive Officer, Wema Bank, Mr. Segun Oloketuyi, said, “In the first half of the year the Bank operated, in an uncertain and challenging domestic economic environment.
“While we recorded notable improvements in the second quarter of the year, especially around foreign currency management, the execution of fiscal policies and the continued tight monetary policy impacted on consumers’ disposable income and invariably on banking sector performance.
“Despite the relatively tough climate, Wema Bank recorded success on a number of financial and non-financial priorities. “The impact of the growth in gross earnings was however muted by the higher cost of funds within the sector. Despite this, we still maintained a decent interest margin while recording a 10 per cent growth in Profit before Tax (PBT).
‘The Bank also further optimized its loan book in the first half of the year by focusing on recoveries and supporting transaction with good and steady cash flows. This resulted in a 9.38 per cent decline in the volume of Loans and Advances, while yield on assets improved.
“Wema Bank’s growth strategy – Project LEAP – revolves around the Bank’s Retail business and this was further strengthened by the May 2017 launch of ALAT, Nigeria’s first fully digital Bank. ALAT is the first of its kind with its end-to-end digital offering and customer interaction.
“The Bank’s target is to onboard an average of 1,000 new customers per day and we are on track to achieve that. The Bank also continues to improve its customer acquisition through the launch of its Agency Banking initiative and the impressive performance of its USSD platform (*945#). Indeed with this 3-pronged strategy, Wema Bank is poised to be Nigeria’s leading Retail Bank.
“We have commenced the second half of the year with cautious optimism, especially around the implementation of the needed economic reforms and execution of the 2017 budget to ensure stimulation of economic growth. The expectation is that the country will exit recession in the 2018 financial year, but this will be dependent on a diligent execution of the reform programme,” he explained.
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