Wema Bank Posts 68% Rise in Q1 2017 Profit
Wema Bank at the weekend released its unaudited result for the first quarter of 2017, posting a 68 per cent increase in its profit after tax which rose to N0.72 billion from N0.51 billion recorded in the corresponding period of 2016.
The bank said its gross earnings increased by 34.89, year on year to N15.16 billion in Q1 2017 from N11.24 billion in Q1 2016. The rise in its profit had been driven by a 78.8 per cent rise in non-interest income which rose from N1.58 billion in the first quarter of 2016 to N2.83 billion in Q1 2017.
Deposits from customers as well as loans and advances, however declined by 2.07 and 2.3 per cents respectively form what it was at the close of the 2016 financial year. Deposits which stood at N320.76 billion in the first quarter of 2016 declined to N314.12 while loans and advances to customers dropped from N227.01 billion which the bank had as at March 31, 2016 to N222.17 billion at eh end of the comparable period of 2017.
When compared to the Q1 2019 figure, customer deposits, savings and current had improved 38.12 and 24.52 per cents to N55.36 billion and N78.45 billion respectively, attributed to increasing market share and brand acceptance.
Commenting on the results, the managing director and chief executive of Wema Bank, Segun Oloketuyi, explained that “despite the continued challenging macro-economic backdrop, Wema Bank recorded a 34.89 per cent increase in Gross Earnings.
“This was driven by a 27.69 per cent and 78.79 per cent growth in interest income and non-interest income to N12.33 billion and N2.83 billion respectively compared to the prior year. In addition, the Bank continues to benefit from the growing market acceptance and increasing market penetration while leveraging on technology. As a result, the Bank continues to record growth in low cost deposits with a 68.06 per cent increase in Profit before Tax (PBT).
“To further strengthen our presence in the retail space, the Bank will launch Nigeria’s 1st Digital Bank named ALAT on May 2nd 2017. ALAT is expected to disrupt the banking landscape and is driven by three pillars – Convenience, Simplicity and Reliability.
“During the quarter, the Bank had its National Long Term Rating affirmed at (BBB-) by Global Credit Rating (GCR), a leading credit rating and research company. We believe this is a testament to our continued commitment to best risk management practices while taking advantage of opportunities, inspite of the challenging economic environment.
