Wema Bank records mixed performance in 2015

Wema Bank Plc grew its top-line but its profit declined marginally in 2015. Earnings per share was almost flat at 6.0 kobo. The board of the bank has not made any announcement on dividend payment, which market pundits have taken as indication that the bank will not be making dividend payment.

Audited report and accounts of Wema Bank for the year ended December 31, 2015 released at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 9.5 per cent from N42 billion in 2014 to N46 billion. Profit before tax however slipped to N3.05 billion as against N3.09 billion. Profit after tax stood at N2.33 billion in 2015 as against N2.37 billion in 2014.

Commenting on the results, managing director, Wema Bank Plc, Mr. Segun Oloketuyi, said the bank has demonstrated resilience with improved deposit liabilities and a robust risk management framework as demonstrated by non-performing loans ratio of 2.67 per cent and a less than one per cent cost of risk.

“Our 2015 performance is a reflection of our resilience and our commitment to continuously deliver value to our stakeholders,” Oloketuyi said.

He noted that the 2015 financial year was a particularly challenging one for the banking sector as the impact of low government spend, policy changes in foreign exchange administration, a depressed energy sector, declining manufacturing outputs and elements of insecurity continued to take a toll on consumer spending and economical activities.

Read also: Access Bank declares N16b dividend on N66b profit

“Without a doubt, these challenges moderated our performance but we still posted a modest and encouraging result at the end of the 2015 financial year. The bank also achieved several significant milestones during the financial year. Top of the list was the grant of a national banking license by the Central Bank of Nigeria, authorizing physical presence anywhere in the country,” Oloketuyi.

He pointed out that while the figures show some relative improvement year-on-year and significant improvement in the last quarter, it must be pointed out that the outlook for 2016 performance remains challenging.

He said the bank has however started the year with a renewed focus on its strategic aspiration of becoming a leading retail bank in Nigeria.

“The continued implementation of project L.E.A.P., the banks growth strategy, helped narrow our focus and channeled of all efforts towards specific opportunities, with great potential and synergistic relationships which we pursued. This strategy, now on its last lap, will again guide the bank’s allocation of resources in 2016,” Oloketuyi said.

 

 

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