Interest, non-interest income boost Wema Bank’s gross earnings by 18.48%

Wema Bank Plc has announced that its 18.48 per cent growth in gross earnings was driven by a 19.72 per cent and 13.16 per cent growth in both interest and non-interest income.

This is just as the Deputy Managing Director of the bank, Ademola Adebise has advised young people to imbibe a savings culture, which he said makes it easier to achieve set life goals and puts people on the path to attaining financial freedom.

Adebise spoke at the Federal Government College (FGC), Enugu as Wema Bank celebrates the Financial Literacy Day 2017. Financial Literacy Day is celebrated in Nigeria every year as part of the worldwide celebration of the Global Money Week, observed in more than 135 countries across the globe.

The bank said its executives were at more than 25 schools across the country to hold financial literacy sessions. They educated the children and youth about the benefits of the age-long idea of saving money in a bank rather than keeping it at home.

The Deputy Managing Director Adebise also advised young people to learn the art of budgeting. “Budgeting helps you to distinguish between wants and needs. This way you can set your priorities right,” he said.

Most of the students present at the Financial Literacy session were ready to open bank accounts at the end of the session, with questions asked about the process involved in opening a Savings Account.

Uduak Afandile, a Zonal Manager at Wema Bank answered questions related to account opening.

Wema Bank offers a range of savings products focused on helping customers to reach their financial goals. The bank also has two products tailor-made for young people.

Meanwhile, speaking on the bank’s audited 2016 financial results, the MD/CEO; Segun Oloketuyi gave further insights into the performance of the Bank.

Without a doubt he said, 2016 was a challenging year given the spate of economic headwinds that impacted the economy and the banking industry, in particular. But, despite the tough operating environment, Wema Bank recorded a double-digit growth in gross earnings, which rose from N45.79 billion to N54.25 billion.

Overall, he added that the Bank continues to benefit from its improving brand acceptance and market penetration. This according to him flowed through to the bottom-line with profit after tax being 14.10 per cent higher at N2.59 billion compared to N2.27 billion in 2015.

Further breakdown of the results show that: Retail customer Deposit (savings) improved 42.79per cent (Y-o-y) to N53.0 billion from N34.4 billion due to increasing market share and brand acceptance; Loan to Deposit Ratio: 70.77 per cent (65.59 per cent as at December 2015);Non-Performing Loans Ratio stood at 5.07per cent (2.67 per cent as at December 2015);Liquidity Ratio 30.30 per cent (33.57 per cent as at December 2015) and Capital Adequacy Ratio (CAR) improved to 11.07per cent (15.10 per cent as at December 2015).

“As a financial institution built on public trust, sound risk management practices remain at the core of our business model. The Bank was not immune from the impact of the economic slowdown and a more prudent approach was taken, in providing for some loans. We closed with a Non-Performing Loan (NPL) ratio of 5.07 per cent from 2.67 per cent in the prior year. In addition, our coverage ratio remains robust at 100per cent with Capital Adequacy Ratio (CAR) at 11.07 per cent, which is above the regulatory minimum of 10,” the MD stated.

Looking ahead, Oloketuyi said the bank remain committed to leading and defining how the use of technology shapes the banking landscape in Nigeria and indeed Africa, with the introduction of it’s *945# banking code amongst other innovative service offerings.

“It is in this light and in our bid to offer our customers the best of ‘all worlds’, that I am pleased to announce that Wema Bank would launch the first fully digital bank in Africa in the first half of 2017. With this launch, we believe that the banking landscape is set for a major disruption by Wema Bank, with our offer of simple, convenient and reliable banking experience to members of the public. The launch is intended to enhance our business model, improve efficiency and reduce our cost to serve,” he said.