Tuesday, July 17, 2018/ 2:10 PM / Proshare Research
Managing Director /Chief Executive Officer’s Review
Commenting on the results, the Acting MD/CEO, Ademola Adebise provided further insights into the performance of the Bank during the period:
The performance of the Bank in the 1st half of the year was largely in line with our expectations, Deposit grew by 39% to
N354.88billion (FY 2017; N254.5 billion) on the back of continued acceptance of the Wema brand and the sustained success of ALAT – our flagship Digital Bank. We also improved our earnings capacity, gross earnings increased by 5.47% from N30.37billion (H1’2017) to N32.03billion (H1’2018), while Profit before tax closed 26.60% higher at N1.81billion.
The Bank continues to execute on its 5-year Retail strategy with a clear mandate to improve performance by leveraging innovation. The emphasis for us is not just to digitize our product offerings to customers but also to build a technology driven back-end infrastructure to further improve on turnaround time and efficiency.
The Bank also continues to improve its customer acquisition through the launch of ALAT and the impressive performance of its USSD platform (*945#). The Bank recorded significant growth in Agency Banking partnerships, with the number of agents increasing by 25% to 845 agents as at H1’2018 across all the 36 states of Nigeria. The bank will further leverage on its platforms and in-built capabilities in lowering cost to serve and growing market share.
During the period, the Bank secured credit lines of $15 million and
N7.3 billion from the African Development Bank (AFDB) and the Development Bank of Nigeria (DBN) respectively. This is further in-line with the Bank’s intent of obtaining long term funding to drive its SME business. The Bank is also expected to open the 2nd tranche of its Debt issuance program in a few weeks.
With these modest half-year results, we believe we are on track to deliver on our commitments to shareholders at the beginning of the year.
Ademola Adebise (Ag. MD/CEO)