Don't Miss

Wema Bank explains return to profitability

By BusinessNews Staff on May 30, 2014

The Chairman of Wema Bank Plc, Mr. Adeyinka Asekun, yesterday attributed the bank’s return to profitability to the success of the management’s turnaround plan.
Addressing shareholders at the annual general meeting (AGM) of the bank in Lagos, Asekun said despite the challenging operating environment, Wema Bank achieved a significant milestone as it returned to full profitability following concerted efforts in implementing the first phase of the bank’s turnaround project.

He assured all stakeholders that Wema Bank was confident of achieving its growth targets while remaining nimble, efficient and responsive. He also thanked shareholders for their unquantifiable support and contributions over the years.

Also speaking, the Managing Director of Wema Bank Plc, Mr. Segun Oloketuyi, said Wema Bank has emerged as a bank to reckon with especially within the retail and small and medium enterprise (SME) business segments

According to him, the bank will continue to differentiate itself in the industry by the quality of its service, product offerings and best-in-class alternative channels.
“With the focused and continuous execution of our transformation plan – Project LEAP, we are expanding gradually and efficiently and establishing our presence in areas that have significant growth potential. We have started work on repositioning our brand, re-tooling our workforce and aggressively deploying alternative channels”, he explained.
Shareholders, who spoke at the AGM commended the performance, saying the management’s strategy led to a positive turnaround in the bank’s fortunes the transformation project began in 2009.

They also pledged their continued loyalty and support for the bank’s long term objectives while reiterating their confidence in the ability of the bank’s management towards driving the institution to its goal of being a best-in-class institution in the Nigerian banking sector.

Wema Bank reported an operating income of N20.9 billion for the year ended December 31, 2013, up from N12.5 billion in 2012. Profit before tax stood at N1.9 billion compared with N4.9 billion in 2012, while profit after tax was N1.6 billion, as against N5 billion in 2012.

Total assets rose 26 per cent from N245 billion to N331 billion, while customer deposits grew by 25 per cent from N174.3 billion to N217 billion. Net loans and advances improved by 34 per cent from N73.7 billion to N98.6 billion.

Non-performing loan ratio improved from 14.2 per cent in 2012 to 3.9 per cent, just as liquidity ratio stood at 77 per cent, up from 65 per cent in 2012. Capital adequacy ratio improved from negative 16 per cent to positive 27 per cent.

[This Day]

headline