Wema Bank Profit After Tax Falls 12% to N2.26 Billion

Wema Bank Plc has reported a profit after tax (PAT) of N2.26 billion for the year ended December 31, 2017, showing a decline of 12.1 per cent compared with N2.56 billion posted in the 2016.

The audited accounts released by the financial institution showed that it recorded gross earnings of N65.27 billion, indicating an increase of 20 per cent from N54.36 billion in 2016. Interest income rose by 19 per cent from N44.46 billion to N53.07 billion, while non-interest income grew by 24.4 per cent to N12.19 billion, from N9.80 billion. Impairment charges rose from N420 million to N2.18 billion.

The bank ended the year with profit before tax (PBT) of N3.01 billion, down 7.38 per cent from N3.25 billion in 2016, while PAT fell from N2.56 billion to N2.26 billion.

Commenting on the performance, the Managing Director/CEO of Wema Bank Plc Segun Oloketuyi said: “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. Our target market is the upwardly mobile youth segment, the young entrepreneurs, the young professionals and the financially excluded, where we continue to leverage incremental innovation and integral capabilities. For us, banking should be simple, reliable and convenient.”

He said the bank 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. Given the relative decline in interest rates and possible growth within the economy, the bank will be re-opening the second series of its N50 billion debt issuance programme. This should commence from the second quarter of the year,” he added.

Reviewing the results, Chief Finance Officer of the bank, Tunde Mabawonku noted that performance was reflective of its continued resilience despite realities arising from increased impairment charges during the period.

“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 per cent (2016: 5.01 per cent) while our Capital Adequacy Ratio (CAR) closed at 14.32 per cent (2016; 11.07 per cent). We remain confident, that the bank’s credit rating will continue to remain affirmed at investment grade level,” Mabawonku said.

He expressed the bank’s commitment to sound risk management while leveraging its digital platforms, built capabilities in lowering the cost of service and attaining competitive advantages.