Wema Bank records N1.6bn net profit

Wema Bank has announced impressive growth in all performance indicators during its financial year ended Dec. 31, 2013.

The audited result of the bank released by the Nigerian Stock Exchange (NSE) in Lagos showed that the bank’s profit after tax stood at N1.6 billion compared with N5 billion loss declared in 2012.

Wema bank’s profit before tax stood at N1.9 billion against the loss before tax of N4.9 billion in 2012.

Its operating income rose by 68 per cent to N20.9 billion against N12.5 billion posted in the previous year.

The bank’s total assets stood at N330.9 billion or 26 per cent growth over the N245.7 billion achieved in 2012.

Customers’ deposits appreciated by 25 per cent to N217.7 billion from N174.3 billion announced in 2012.

The News Agency of Nigeria (NAN) reports that the bank’s liquidity ratio appreciated by 77 per cent from 65 per cent in 2012.

Commenting on the result, Mr Segun Oloketuyi, the bank’s Managing Director, attributed the growth to N40 billion Tier one capital raising exercise concluded in third quarter of 2013.

Oloketuyi said that the additional capital increased the bank’s capacity to do business and ability to withstand economic shocks.

He said that the bank had returned to full profitability due to concerted efforts in the implementation of the first phase of its turnaround project.

Oloketuyi said that the bank’s transformation plan, “Project Leap,” a short term growth project targeting increased market share in retail banking and Small and Medium Enterprises (SMEs), had started yielding results.

“We recorded improvements in profitability and an increase in customer deposits on the back of our retail and commercial businesses,” he said.

According to him, the bank remains committed to 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 and deploy a cutting edge information technology platform,” Oloketuyi said.

He said that “the 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.”

Oloketuyi said that the bank had made significant investments in alternative channels, product offerings and brand building initiatives to increase its market share. (NAN)