Wema Bank Plc. has reported double-digit growth in gross earnings for the year ending December 31, 2016. The bank held its Annual General Meeting (AGM) on Wednesday May 10, 2017 during which the financial report was presented to shareholders. Also, as part of its strategy to deliver convenient and reliable banking services, the bank recently launched a digital banking solution, ALAT, regarded as Africa’s first fully digital bank.
The financial report showed that the Bank recorded a double-digit growth in gross earnings, which rose 18.48% from N45.79 billion to N54.25 billion, driven by an 18.61% and 13.61% increase in Interest and Non-Interest Income respectively. The Bank recorded a Profit After Tax of N2.59 billion, rising 14.10% over the N2.27 billion recorded in 2015.
Speaking on the Bank’s performance, the MD/CEO, Segun Oloketuyi explained that despite the challenging economic environment in 2016, particularly in the banking industry, the Bank benefited from its improving brand acceptance and market penetration.
“Sound risk management practices remain at the core of our business model. The Bank was not immune to the impact of the economic slowdown, but a more prudent approach was taken, in providing for some loans. We closed with a Non-Performing Loan (NPL) ratio of 5.07% from 2.67% in the prior year. In addition, our coverage ratio remains robust at 100% with Capital Adequacy Ratio (CAR) at 11.07%, which is above the regulatory minimum of 10%.”
On the digital banking revolution, Oloketuyi explained that the banking landscape is set for a major disruption with the launch of ALAT, adding that the new initiative is intended to deliver convenient and reliable banking experience to members of the public.
“We remain committed to leading and defining how the use of technology shapes the banking landscape in Nigeria and indeed Africa, with the introduction of our *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 has launched ALAT, Africa’s first fully digital bank. 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.
In addition, Oloketuyi said the bank is offering its customers an optimal banking experience through its innovative digital platform.
“ALAT is the bank for the future and it redefines the seamless relationship we have with our customers. This is an offering to the young professionals, entrepreneurs and students who are tech savvy and always on the move. It is an opportunity to integrate banking into their lifestyle without hassles, by offering them real value, as they desire”, he said.
Oloketuyi informed that the bank will continue to leverage on its digital platform to grow its revenue considering the double-digit growth recorded in the year ending December 31, 2016.
“We expect the vestiges of the headwinds in the economy to remain in 2017. However, we remain optimistic about the bank’s performance as we leverage on the continued growth of our digital and physical footprints to grow our market share and improve our returns to all stakeholders”, he stated.
Wema Bank is Nigeria’s longest surviving indigenous bank, offering products and services across retail and SME banking, corporate banking, treasury, trade services and financial advisory. With over 72 years of expertise in banking, Wema Bank operates a network of over 140 branches and service centres across Nigeria, backed by a robust ICT platform.