Wema Bank posts N590m profit in Q1

Wema Bank Plc, yesterday, released its first quarter financial result, posting a ProfitBefore-Tax (PBT) of N590 million against a loss of N853.4 million in March 2013.

The bank, however, recorded a growth in its total assets of N322.7 billion, against N330.9 billion in December 2013, loans and advances to customers of N95.2 billion compared to N98.6 billion in December 2013 and customer deposits of N206.3 billion against N217.7 billion recorded in the financial year of 2013.

Tunde Mabawonku, the bank’s chief financial officer, attributed the growth to resurgent franchise, the bank’s loyal stakeholders and a commitment to strong corporate governance and risk management frameworks.

He said: “We have continued to maintain our steady growth drive with focus on growing our top line income and commitment to cost reduction. This has resulted in a profit of N590 million in the period under review, having previously recorded a loss in the first quarter of 2013. Our income position is also improving with both interest and non-interest income jumping 60 per cent and 33 per cent year on year. With a cost of funds at 5.3 per cent and a growing net interest margin of 7.7 per cent, we are maintaining the course of sustainable growth.”

He explained the aim of the bank was to transform itself from the current regional banking industry player into a prominent retail bank with national authorization and establish its presence in areas that have significant growth potential.