Wema Bank Plc’s gross earnings rose from N54.36 billion in the 2016 financial year to N65.27 billion in 2017, representing a 20.07 percent jump, the bank’s financial statement shows.
The bank’s interest income grew 19.10 percent to N53.07 billion as against N44.56 billion reported by December 31, 2016.
At the annual general meeting (AGM) held in Lagos, the bank said it would re-open the second series of its N50 billion debt issuance programme, from this quarter, on the back of relative decline in interest rates and possible growth within the economy.
At the AGM where the financial report for the year ending December 31, 2017, was presented to shareholders, the bank announced commitment to its growth phase, seen as the final stage of a restructuring process that started in 2009.
Segun Oloketuyi, managing director/ CEO, said the bank’s growth was supported by the launch of ALAT, Nigeria’s first fully digital Bank, which enhanced the bank’s already existing alternate platforms, recording a combined growth rate of 205.67 percent in transactions executed and with an estimated 30,000 accounts opened monthly.
“We have made necessary steps to consolidate on the growth achieved in the new financial year,” Oloketuyi said.
He commended the shareholders for their understanding over the years and for seeing the bank through the first two restructuring phases of the bank, adding that Wema Bank was now in the final stage of its three-pronged strategy: Stability(2009 2012), repositioning (2013-2017) and growth (2017 and beyond).
“Despite the slow start to the year, 2017 recorded significant progress, highlighted by the introduction of the Investor & Exporters (I&E) window and recovery in oil prices,” he said.
In October, the bank held its Extra-Ordinary General Meeting (EGM) directed at its proposed Capital Reorganisation Scheme. The CEO announced that the exercise had been concluded.
He explained that with all relevant regulatory approvals in place and duly passed and reflected in the 2017 financial year accounts, the conclusion of the exercise would now lead to an efficient balance sheet, as ploughed back profit could be capitalised to grow the business, while positioning the bank for dividend payment in the near term.
“We approached the money market in November 2017 to raise N25 billion in two series under a commercial paper programme; Series 1, N10 billion 182-day tenor; and Series 2, N15 billion- 270-day tenor,” he stated.
On his part, Tunde Mabawonku, chief finance officer, noted that the bank’s earnings from non-interest income remained strong at N12.19 billion, from N9.80 billion in 2016; surpassing its 2017 guidance of a 19 percent growth rate.
Wema Bank closed with a Profit before Tax (PBT) of N3.01 billion, as against N3.24 billion recorded the previous year. Profit After Tax was N2.25 billion, from N2.56 billion reported in 2016.
“Risk management remains at the core of our operations, as we leverage on our prudent risk management practices and reported a Non-Performing Loan (NPL) ratio of 3.52 percent as against 5.01 percent in 2016.We remain confident that the bank’s credit rating will continue to remain affirmed at investment grade level,” Mabawonku said.
ODINAKA ANUDU
