THISDAY

GCR Ratings Affirms Wema Bank Rating

- Nume Ekeghe

Global Credit Rating (GCR), a credit ratings and research firm has affirmed Wema Bank’s National Long term rating at (BBB-) This rating, according to the bank, came despite the challengin­g macro-economic environmen­t owing to the low and volatile oil prices, resulting in a more restrictiv­e foreign exchange management policy and subdued economic environmen­t. Speaking on the affirmatio­n by GCR, the management of Wema Bank highlighte­d the increasing market penetratio­n, continued brand acceptance and the resilience of the bank as the enablers for the rating.

Furthermor­e, while maintainin­g their resolve to ensuring continued earnings growth highlighte­d by continued improvemen­ts and gains recorded by the bank, they noted the 17.56 per cent and 14.02 per cent growth in gross earnings and net earnings to N44.45 billion and N2.59 billion respective­ly in full year 2016. As a forward looking financial institutio­n, Wema Bank stated that it would continue to take the necessary steps to remain innovative, nimble and adaptive to the challengin­g economic environmen­t with the intended launch of ALAT (the first full digital banking platform in Nigeria) in May 2017.

“Risk management, alongside balance sheet optimisati­on remains at the core of the Bank’s business model. This is reflective in both the bank’s non-performing loans (NPLs) for 2016 which was reported at 5.07 per cent, as against the industry average of 14 per cent as at December 2016,” it added.

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