WEMABANK Records Significant Improvement in Profitability; Grows Asset by 35%.

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Thursday April 3, 2014 03:25 PM/ WEMABANK /Press Release

Full Year audited financial results for the period ended December 31, 2013.

 

LAGOS, NIGERIA – April 7, 2014 – WEMA Bank Plc, has announced its Full Year Audited results for the twelve month period ended December 31, 2013. Wema Bank Plc continues to reaffirm its position as one of Nigeria’s brightest prospects in the financial services industry with the successful completion of the first phase of its repositioning programme and its return to full profitability as announced in its audited results for the year ended December 31, 2013.

 

This comes on the heels of the successful completion of the Bank’s N40bn Tier 1 capital raising exercise in Q3, 2013 which was fully subscribed by Nigerian investors. Speaking from the Bank’s Headquarters in Lagos, Nigeria, Segun Oloketuyi, Managing Director/CEO of WEMA Bank Plc, said:

 

“This year, we achieved a significant milestone at Wema Bank as we returned to full profitability following our concerted efforts in implementing the first phase of the Bank’s turnaround project, despite the increasingly competitive and highly regulated operating environment.

 

We are particularly encouraged by our Year-on-Year growth in our Total Assets, Customer Deposits and, Loans & Advances to customers which grew 35%, 25% and 34% respectively. We recorded a strong Capital Adequacy Ratio of 27% and recorded a Profit Before Tax of N1.9billion compared to a loss position in previous financial years.

 

Our transformation plan, Project Leap; a short term growth project with a target of rapidly increasing our market share in our niche segment of Retail & SME has started to yield positive results and the Bank is on the path of sustainable growth. We recorded improvements in profitability and an increase in customer deposits on the back our Retail and Commercial businesses.

 

 The Capital raising exercise we concluded in 2013 has also increased our capacity to do business and ability to withstand economic shocks. The Bank remains committed to improving operational efficiency and focused on containing operating expense growth. We have used the last three years to implement a robust and effective Risk Management framework, deploy a cutting edge information technology platform and most importantly, reskill and retool our workforce to effectively compete in the ever-changing business landscape.

 

WEMA bank has turned the corner and we are now in a growth phase, we intend to gradually and selectively expand our footprint while growing our customer portfolio. We have made significant investments in our alternative channels, product offerings and in brand building initiatives and remain committed to increasing our market share in the short term and consolidating on those gains in the medium to long term."

  

Financial highlights 

 

Balance sheet

Total assets up 26% to N330.9 billion (N245.7bn December 2012)

Customer deposits, up 25% to N217.7billion (N174.3 December 2012)

Net loans & advances to customers up 34% to N98.6billion (N73.7 billion December 2012)

 

Income statement

Total operating income of N20.9 billion, an increase of 68% (N12.5 billion December 2012)

Net interest income of N12.5 billion, up 6% (N11.7 billion December 2012)

Non-interest revenue of N7.1 billion, up 25% (N5.6 billion December 2012)

Credit impairment credit of N1.3 billion (N4.9 billion charge in December 2012)

Profit before tax of N1.9 billion (Loss before tax of N4.9 billion December 2012)

Profit after tax of N1.6 billion (Loss of N5.0 billion December 2012)

 

Key Ratios

EPS: 8kobo (-42kobo December 2012)

NPL Ratio: 3.9% (14.2% December 2012)

Liquidity Ratio: 77% (65% December 2012)

Capital Adequacy Ratio: 27% (-16% December 2012)

 

Operational and Reporting highlights

Successful Tier 1 capital raise of N40 billion, fully subscribed by Nigerian shareholders

Partnered with MasterCard and Intercontinental Hotels for the "Rewards Club" Initiative

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