The Board and Management of Wema Bank Plc has concluded plans to reward ts shareholders with dividend, 14 years after the exercise was suspended due to various challenges.
For the year ended December 31, 2018, the Bank’s gross earnings increased year-on-year from N65.27 billion in 2017 to N71.53 billion in 2018 representing 9.6 per cent increase while Profit after Tax (PAT) rose 36.28 per cent to N3.08 billion in 2018 from N2.26 billion in 2017.
Also within the year, the bank’s interest expenses dropped by eight per cent, causing Net Interest income to increase by 36.52 per cent, this was majorly driven by a reduction in deposits held for other banks.
According to the bank’s financial results, net loans and advances stood at N252 billion, compared to N216 billion in 2017 representing 16.84 per cent year-on-year growth.
Speaking on the result, the bank’s Managing Director/Chief Executive Officer, Ademola Adebise said that despite the challenging macro-environment, Wema Bank delivered modest improvement at the end of the 2018 financial year.
“The group recorded a gross earning of N71.53 billion which was a 9.6 per cent increase over the 2017 figure and Profit before tax (PBT) of N4.8 billion which represents a 59 per cent growth over the N3.01 billion reported in 2017 and profit after tax (PAT) of N3.33 billion as against N2.26 billion in 2017). This growth resulted from an 8.59 per cent increase in Interest income and a 13.95 per cent increase in non-interest income,” he said
He said the bank continues to improve on its Deposit mobilization while at the same time working down its cost of funds. ALAT, Nigeria’s first fully digital Bank, launched in May 2017 has improved the bank’s retail liabilities and customer base. The bank records over 1,000 new customers daily on the digital platform and continues to grow its partnership profiles.
The Digital Bank continued to receive several accolades in 2018, including the World Finance Awards for Most innovative Bank Africa and the Asian Banker Awards for Best Digital Bank Africa. “Our vision is to get ALAT to become the premier digital platform in Nigeria. This will be driven by our expertise in the Digital space and our retail partnerships,” Adebise said.
