WEMABANK Declares N2.33 billion PAT;Profit Drops by 1.9% in 2015 Audited Result,(SP:N0.80k)

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Monday, March 21, 2016 6:52PM /NSE


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WEMA Bank Plc. ("WEMA" or "the Bank"), announced its Audited Full Year results for the twelve-month period ended December 31, 2015.

Wema Bank Plc, delivered a 9.5% growth in its gross earnings driven by improved deposit liabilities over the period. This was achieved through a robust risk management framework as demonstrated by NPL ratio of 2.67% and cost of risk below 1%. Commenting on the results, Segun Oloketuyi, Managing Director/CEO of WEMA Bank Plc, said:

Our 2015 performance demonstrates our resilience and commitment to continuously deliver value to our stakeholders. The 2015 financial year was a particularly challenging one for the banking sector and economy as a whole. This was due to the impact of reduced Government spending, policy changes in foreign exchange administration, a depressed energy sector, declining manufacturing outputs and elements of insecurity, which have continued to take a toll on consumer spending and economic activities.

While these challenges moderated our performance, we have been able to sustain our transformation drive with total deposits for the period growing circa 10% over the prior year to N284.9 billion, gross earnings improving to N46.0 billion from N42.19 billion recorded in 2014, and closed the year with profit before tax remaining stable at N3.05 billion compared to N3.09bn in 2014.

The Bank also achieved several significant milestones during the financial year. Top of the list was the grant of a National banking license by the Central Bank of Nigeria, authorizing physical presence across the country. Also, the Bank celebrated its 70th anniversary with a brand repositioning exercise which saw it change some core brand elements, giving way to a more vibrant and dynamic look with an increased focus on service excellence. The Bank was also awarded critical certifications of ISO 20000 and ISO 27001 and launched the Card control security feature on its mobile app - a first in the industry.

While the figures show some relative improvement year-on-year and significant improvement in the last quarter, the outlook for 2016 performance remains challenging. The Bank has however started the year with a renewed focus on its strategic aspiration of becoming a leading retail bank in Nigeria.

The continued implementation of Project L.E.A.P- (the Bank’s Growth Strategy), narrowed our focus and channeled  our efforts towards specific opportunities with great potential and symbiotic relationships. This strategy, in its final phase, will continue to guide the Bank’s allocation of resources in 2016.

Financial highlights

Balance Sheet & Income Statement

·                     Total Assets grew by 4% to ₦397 billion (Dec 2014: ₦382 billion)

·                     Total Deposits grew by 10% to ₦285 billion (Dec 2014: ₦259 billion)

·                     Gross Loans & Advances increased by 25% to  ₦186 billion (Dec 2014: ₦149 billion)

·                     Gross Earnings were up by 9.5% to N 46 billion (Dec 2014: ₦42 billion)

·                     Profit Before Tax was maintained at ₦3.05 billion (Dec 2014: PBT ₦3.09 billion)


Key Ratios

·                     Capital Adequacy Ratio: 15.09%* (18.22% December 2014)

·                     Loan to Deposit Ratio: 65.13% (57.65% December 2014)

·                     Non-Performing Loans ratio: 2.67% (Dec 2014: 2.49%)

·                     Net Interest Margin: 5.9% (5.48% in December 2014)

·                     EPS: 6 kobo (6 kobo as at December 2014)

·                     Return on Equity 5.2% (5.42% December 2014)

 

Operational and Reporting highlights

·                     Upgrade of our Banking License to National Authorization

·                     Awarded the ISO 27001 and ISO 20000 certifications by the British Standards Institute

·                     First financial institution in Nigeria to implement Card Control

·                     Concluded the Brand Refresh Programme


 

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