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Wema Bank grows profit by 345% to N2.5bn

By on October 17, 2014

Wema Bank Plc yesterday reported highly impressive results for the nine months ended September 30, 2014, indicating that the efforts to reposition the bank have started yielded fruits.
Wema Bank recorded an increase of 26 per cent in operating income, from N15 billion to N19 billion. Profit before tax jumped by 345 per cent from N560 million to N2.5 billion. Loans and advances to customers grew by 30 per cent from N98.6 billion in December 2013 to N129 billion in 2014.
Customer deposits rose by eight per cent to N234.5 billion, up from N218 billion in December 2013, just as total assets rose to N351.4 billion compared with N330.9 billion as at December 2013.
Cost to income ratio stood at 86.8 per cent, down from 95.2 per cent in 2013. Non-performing loans ratio fell to 6.9 per cent compared to 7.0 per cent in 2013. Return on equity stood at 7.9 per cent compared to 3.9 per cent as at December 31, 2013.
Commenting on the results, Managing Director/Chief Executive Officer of Wema Bank, Mr. Segun Oloketuyi said: “While we remain on course in achieving our growth targets as set out by our growth plan, Project LEAP, we are delighted to announce continuous quarter-on-quarter improvement in our financial performance as displayed in our Q3 results.”
According to him, the bank’s operations are also becoming more efficient with cost-to-income ratio down 900 basis points to 86 per cent from 95 per cent  at year-end.
“These achievements, when combined with our growing deposit base illustrate that our turnaround initiatives are indeed yielding results,” he said.
He said Wema Bank opened three new branches in the last quarter, and embarked on a renovation exercise of  its branch network in key commercial and retail hubs, while  keeping a keen eye on possible opportunities in the market to grow our business inorganically.
“We have obtained our PCI-DSS recertification and continue to improve our technology and electronic payment platforms. We intend to continue to leverage the efficiency gains from Project LEAP, and invest in key areas to achieve superior returns to our shareholders over the next quarter and through to next year” Oloketuyi said.

 

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