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Shareholders of Wema Bank Plc, were assured of sustained earnings growth, even as the country try to come out of the economic recession.
Speaking at the bank Annual General Meeting in Lagos on Wednesday, the bank Managing Director Mr Segun Oloketuyi explained that “We expect the vestiges of the headwinds in the economy to remain in 2017. However, we remain optimistic about the Bank’s performance as we leverage on the continued growth of our digital and physical footprints to grow our market share and improve our returns to all stakeholders.”
Oloketuyi pointed out that despite the challenging economic environment in 2016, particularly in the banking industry, the Bank benefited from its improving brand acceptance and market penetration.
He noted that funding remains at the core of the enterprise strategy, “We reported an encouraging growth rate in our retail deposit volumes. We also intensified and contracted a couple of partnerships during the year which have contributed in good measure to customer acquisition.”
He said “sound risk management practices remain at the core of our business model. The Bank was not immune to the impact of the economic slowdown, but a more prudent approach was taken, in providing for some loans. We closed with a Non-Performing Loan (NPL) ratio of 5.07 percent from 2.67 percent in the prior year. In addition, our coverage ratio remains robust at 100 percent with Capital Adequacy Ratio (CAR) at 11.07 percent, which is above the regulatory minimum of 10 percent.”
On the 2016 financial statement, the bank report showed that the bank recorded a double digit growth in gross earnings, which rose to 18.48 percent from N45.79 billion to N54.25 billion, which was driven by an 18.61 percent and 13.61 percent increase in interest and non-interest income respectively. The bank recorded a profit after tax of N2.59 billion, rising 14.10 percent over the N2.27 billion recorded in 2015.
It would be recalled that the bank recently launched its fully digital banking platform, commenting on the innovation, Oloketuyi explained that “We remain committed to leading and defining how the use of technology shapes the banking landscape in Nigeria and indeed Africa, with the introduction of our *945# banking code amongst other innovative service offerings. It is in this light and in our bid to offer our customers the best of “all worlds”, that I am pleased to announce that Wema Bank has launched ALAT, Africa’s first fully digital bank. With this launch, we believe that the banking landscape is set for a major disruption by Wema Bank, with our offer of simple, convenient and reliable banking experience to members of the public. The launch is intended to enhance our business model, improve efficiency and reduce our cost to serve.”
