Thursday, July 19, 2018 06:43 PM / Proshare Markets
Wema Bank Plc held its H1 2018 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The bank in its description of the policy highlights reflecting some of CBN’s activities and the operating environment stated that the MPC maintained key rates unchanged at its first meeting of the year while the domestic economy improved during the year as shown by the GDP & PMI data. Also, there is increased pressure on Naira as oil production capacity remains flat & demand for forex likely to increase over Q3 & Q4.
Wema Bank Plc recorded a gross earning of N32.03bn in H1 2018 as against N30.37bn in H1 2017, up by 5.47% YoY as increasing brand acceptance is supportive of its earnings growth. Profit After Tax grew by 28.70% from N1.22bn in H12017 to N1.57bn in H12018.
The bank’s business continues to benefit from improving brand acceptance, resulting in a 39.44% increase in deposits from N254 billion to N354.88 billion during the period under review while customer acquisition initiatives involving partnerships, campus storms and our digital platforms have improved our its customer base.
In a nutshell, below are the key takeaways from the FY 2017 and Q1 2018 earnings presentation made by the bank’s management;
1. The bank grew its customer base by over 200,00 to 2.17m and its agency banking partners also grew as it alternate banking channels continue to get more acceptance.
2. Wema Bank is ranked 8th in the customer survey by KPMG and also recorded Improved Service Rating.
3. The bank plans to raise about N20bn tier 2 capital in August to support project business growth.
4. It plans to improve market share and efficiency by leveraging digital capabilities.
5. Its NPL ratio declined to 3.31% in H1 2018 from 3.53% in 2017FY and its 2018 guidance for some metrics were improved after H1 2018.
1. WEMABANK Declares N1.57bn PAT in Q2 2018 Results,(SP:N0.63k)