Wema Bank Grows Nine Months Profit by 72% to N2.6 Billion

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By Goddy Egene

Wema Bank Plc has posted improved bottom-line for the nine months ended September 30, 2018, helped by a significant growth in trading income.

The results released last Friday showed net interest income of N15.349 billion, up from N11.976 billion in the corresponding period of 2017.  Net fee and commission income fell slightly from N5.551 billion to N5.421 billion in 2018. However, trading income soared from 166 per cent to N4.276 billion, from N1.603 billion.

This boosted the operating income to N25.448 billion, compared with N20.068 billion. But personnel expenses rose from N7.844 billion to N8.564billion, while other expenses jumped from N8.644 billion to N11.864 billion.

Hence, Wema Bank Plc ended the nine months with profit before tax of N3.057 billion, showing an increase of 69 per cent above the N1.799 billion recorded in 2017. Similarly, profit after tax rose 72 per cent to N2.644 billion, compared with N1.529 billion in the corresponding period of 2017. The lender recorded earnings per shares of 9.2 kobo, up from 5.3 kobo in 2017.

Wema Bank Plc recently disclosed that it planned to raise    up to N20 billion senior unsecured bond in Series 2 of its bond issuance progamme.

According to the bank, the new issuance followed a successful establishment of N50 billion Bond Issuance Programme.

It explained that    the series 2 of the bond is to be issued for a tenor of 5-7 years and the target market is the institutional investors. It added that the   proceeds of the bond are intended to boost its working capital and meets its financing needs. The bank had raised N6.2 billion in its first tranche of the N50 billion debt programme.

Also, the bank recently confirmed Mr. Ademola Adebise as managing director/chief executive officer(MD/CEO), effective October 1, while Mr. Moruf Oseni has been named deputy managing director.

Adebisi was appointed the acting MD/CEO in July when the former MD/CEO, Mr. Segun Oloketuyi proceeded on  terminal leave in July 2018.

 He  has been part of the bank’s executive management team since the transformation programme  began  in  2009  and  has  played  a  pivotal  role  in  the  execution  of  the  strategic  turnaround programme for the bank.

According to bank, “Adebise has over 28 years’ experience in the banking industry (inclusive of four years in management consulting), and has worked in various capacities in information technology, financial   control   &   strategic   planning,   treasury,   corporate   banking,   risk   management   and performance management.”