Wema Bank plc, Nigeria’s longest surviving indigenous bank, established in 1945 sustained its financial performance in first half of the year, though on a lower level compared to the same period in 2014.
The bank recorded gross earnings of N20.87 billion, up from N20.82 billion in H1 2014. Net Interest Income declined to N9.06 billion from N9.71 billion in H1 2014.
Also Profit Before Tax of the bank stood at N1.17 billion, down from N1.70 billion in H1 2014. The banks Loans and Advances dropped to N134.57 billion, from N149.29 billion as at December 2014, deposits from customers also drop to N234.10 billion, from N258.96 billion as at December 2014, while the bank recorded Non-Performing Loan ratio of 2.9 percent up from 2.5 percent recorded in H1 2014. Other Operating Expenses of the bank declined to N4.98 billion, compared to N5.04 billion in H1 2014.
Segun Oloketuyi, Managing Director/CEO noted that the first quarter of the year was characterized by election-related activities and political maneuverings with limited emphasis on economic matters, while the second quarter was largely characterized by the continued pressure on the currency, the tight monetary policy conditions and the low level supply of petroleum products. All these issues affected consumer discretionary spending and indeed the growth in our Retail volumes.
Due to the lack of economic policy clarity so far in 2015, he said investment decisions have been tentative. In addition, the CRR harmonization has reduced liquidity with significant impact on margins from money market investments. “We are confident that as the new administration settles into office, its policy thrust will become clearer, hence, enabling us to continue to make well informed lending decisions mitigate risk exposures and further expand our customer base.”
“Despite the economic challenges, we have made appreciable progress in our transformation project. On May 2nd, 2015, Wema Bank unveiled a new corporate identity to reflect our new direction and strategic focus. The Bank now has a fresh, vibrant and contemporary look which is also replicated in our approach to business. We have also commenced the process of raising additional capital in the second half of the year to grow business. We will continue to work on other elements of our Project LEAP growth strategy as communicated to stakeholders”, he said.
Tunde Mabawonku, the Chief Finance Officer said operationally, the Bank has continued to efficiently deploy its assets. “Our loans to deposits ratio has moderated to 57.1 percent, compared to 57.6 percent as at December 2014, through a cautious approach to our lending, pending policy clarity from the new administration”.
HOPE MOSES-ASHIKE
