Wema Bank Posts Positive Half-year Results

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Obinna Chima

Wema Bank Plc’s unaudited results for the six-month ended June 30th, 2016 have shown that the bank recorded a 10 per cent improvement in profitability on the back of 42 per cent growth in fee income.

Specifically, the bank’s profit after tax also rose by 11.11 per cent to N1.1 billion at the end of the first half of the year. Its profit before tax also advanced to N1.29 billion in the period under review, from N1.17 billion, representing an increase by 10.62 per cent. Similarly, the bank’s gross earnings increased by 16.4 per cent year-on-year to N24.3 billion at the end of June, from N20.9 billion in the corresponding period of 2015.

Its total deposit improved by 11 per cent year-on-year from N237.43 billion in the previous period to N277.87 billion as at half year 2016. However, there was a decline of 2.49 per cent in comparison to N284.98 billion recorded in December 2015. But Wema’s operating expense increased by 27 per cent in the period under review.
Commenting on the results, its Managing Director/Chief Executive Officer, Mr. Segun Oloketuyi said: “The 2016 financial year has been a rather eventful one for the Nigerian economy. The year has been characterised by deceleration on a number of economic indicators coupled with increasing energy costs, intensified by rising inflation, all within a tough operating environment. The banking industry has also not been exempted from these challenges.

In spite of these challenges, Wema Bank has been able to deliver a modest improvement in the first half of the year. Interest income grew by 15.2 per cent from N17.5 billion in first half 2015 to N20.2 billion in the current period, while fee and commission income improved significantly by 42.3 per cent from N2.2 billion in first half 2015 to N3.1 billion in first half 2016.”

According to him, the growth in non-interest revenues was driven by our on-going initiative to enlarge our footprint in the retail space while keeping customers at the heart of our operations.