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Tag: Wema Bank

  • Wema Bank emerges best performing bank in half year 2022

    Wema Bank emerges best performing bank in half year 2022

    Nigeria’s most innovative bank, Wema Bank Plc, has emerged as the best-performing bank in the first half of the year 2022 financial year with a weighted average score of 2.83 points, beating 12 other banks.

    According to a special report on the Nigerian banking performance in the first half of 2022 prepared by Nairametrics, Wema Bank ranked first in one category, second in three categories and third in one category. Stanbic IBTC and First Bank came second and third respectively.

    The key metrics considered in the report are total asset growth, loan book growth, profit growth, cost-to-income ratio movement, and return on average equity.

    The 13’reviewed banks which are listed on the Nigerian Exchange posted a net profit of N1 trillion in 2021 from N887.1 billion recorded in 2020.

    The 13 reviewed banks are Wema Bank, First Bank of Nigeria, FCMB, GTB, Jaiz Bank, Access Bank, and Stanbic/IBTC. Others are UBA, Sterling Bank, Unity Bank, Union Bank, Zenith Bank, and Fidelity Bank.

    During the first six months of 2022, the thirteen banks posted an aggregate of N501.1 billion as profit after tax, representing an increase of 13.1% compared to N443.17 billion recorded in the corresponding period of 2021

    The banks grew their bottom line despite headwinds ravaging the global economy as the energy crisis triggered a significant surge in the operational costs of businesses operating in the country, while some banks were forced to ration their operating hours in a bid to manage the rise in the cost of operation.

    Wema Bank came first in the category of
    Leading bank’s by customer deposits growth . The bank recorded ±30.2 percent customer deposit growth during the review period, followed by Fidelity Bank and Access Bank with +13.1 percent and +12.8 percent respectively.

    Wema Bank came second in three other categories – total assets growth rate (+13%), loan book growth rate (+19.9%) and profit after tax growth rate {+47.8%}.

    Stanbic IBTC , the second place winner, ranked first in total asset growth rate and leading bank’s by cost to income ratio growth rate.

  • FG probes Wema Bank, Bet9ja over alleged data breach

    The Nigeria Data Protection Bureau has launched investigations into reports of an alleged breach of data privacy by Wema Bank plc and KC Gaming Networks (Bet9ja).

     

    The investigation is being undertaken by a Federal Government agency under the National Information Technology Development Agency (NITDA).

     

    TheNewsGuru.com (TNG) reports that the agency described Wema Bank and Bet9ja as two major data controllers in Nigeria.

     

    According to NITDA, the objectives of these investigations are to determine the impact of the breaches on the affected data subjects and the remedial actions taken by the concerned data controllers.

    FG

     

    In a statement by the Head of Legal Enforcement and Regulation of the Bureau, Mr Babatunde Bamigboye, the agency noted that the probe followed complaints against the bank and Bet9ja.

     

    The statement reads: “The Nigeria Data Protection Bureau (the Bureau) has commenced investigations into reports of breach of data privacy involving two major data controllers in Nigeria, namely, Wema Bank PLC and KC Gaming Networks (Bet9ja).

     

    ” This is in line with Section 37 of the 1999 Constitution and the provisions of Nigeria Data Protection Regulation (NDPR) 2019 – particularly Articles 2.1(2)-(3), 2.6 and Article 4 of the NDPR.

     

    “It will be recalled that sometime in May 2022, some customers of Wema Bank PLC complained of breach of their rights to data privacy and protection by the Bank.

     

    “This data processing, according to the complaints against the Bank, involves using their personal data to open accounts. The Bureau is also investigating report of breach of data privacy at KC Gaming Networks. The breach in this case involved alleged external attack on the KC Gaming Networks.

     

    “At this stage, the objectives of these investigations as directed by the National Commissioner/CEO of the Bureau, Dr. Vincent Olatunji, are to determine the impact of the breaches on the affected data subjects and the remedial actions taken by the concerned data controllers.

     

    “The Bureau assures members of the general public that it will ensure proper accountability of the data controllers in the ongoing investigations.“

  • Wema Bank debunks N1.7 billion money laundering claim

    Wema Bank debunks N1.7 billion money laundering claim

    Wema Bank Plc has debunked a money laundering and bribery allegation to the tune of N1.7 billion currently circulating in sections of the media.

    Wema Bank stated categorically that there is no merit in the report, stressing that it is a malicious publication against members of staff and the bank’s customer.

    According to a statement released by the bank, allegations are being peddled by an aggrieved 3rd party, who voluntarily released his property to be used as part of the collateral to secure a loan obtained by the bank’s customer.

    The statement reads: “The attention of the Bank has been drawn to recent reports in the media on money laundering and bribery allegations on certain customer’s transaction. The publication went ahead to mention the names of certain Wema Bank management staff to be allegedly involved in the said transaction.

    “The Bank wishes to state categorically that there is no merit in the article, and it is a malicious publication against members of our staff and the Bank’s customer.

    “The said allegations are being peddled by an aggrieved 3rd party, Timi Popoola, who voluntarily released his property to be used as part of the collateral to secure a loan obtained by the Bank’s customer.

    “Specifically, on Tuesday March 15, 2022, the case no. MIK/B/6/2022–Commissioner of Police vs. Adewole Isaac & Kingsley Ananwude, for alleged stealing and money laundering involving N1.7billion was struck out by Magistrate A.O. Layinka (Mrs.) of the Magistrates Court, Ikeja and the defendants discharged following the Legal Advice from the Office of the Director of Public Prosecution (DPP), Lagos State that no prima facie case has been established against the defendants.

    “We urge the general public to ignore the false information being circulated. The Bank has already engaged its solicitors to institute appropriate legal action”.

  • Wema Bank announces 108.3% growth in Profit Before Tax

    Wema Bank announces 108.3% growth in Profit Before Tax

    Wema Bank Plc’s resilience was on display as the digitally driven financial institution announced its financial results for the year ended December 31, 2021. The performance which capped a remarkable year showed strong growth in key financial indices especially as the bank crossed the ₦1trillion mark in total assets.

    In a statement made to the public by the bank, the Managing Director. Mr. Ademola Adebise said, “I am delighted to announce our performance for the year ended 31st December 2021. The Bank’s FY 2021 results shows robust growth in all key financial metrics despite the challenging macro-economic environment.

    “Our year end numbers highlight the strong growth trajectory of the financial institution. We comfortably crossed the ₦1trillion mark in total assets, with a share of approximately 3% of industry deposits.”

    Wema Bank recorded an increase of 108.3% in profit before tax (PBT) to close the year at N12.38 billion. This was driven by a Year-on-Year growth of 15.35% in gross earnings to ₦92.14billion in FY 2021 from ₦79.88billion in FY 2020.

    The Chief Finance Officer of the Bank, Mr. Tunde Mabawonku noted that “a key measure of success for us is a consistent growth in our balance sheet and customer base – and we are glad that we are reporting healthy growth in all these areas.”

    Deposit Liabilities grew by 15.23% to ₦927.47billion in FY 2021 from ₦804.87billion in FY 2020 while Total Asset increased by 20.23% to ₦1.164.52billion in FY 2021 from ₦968.58billion in FY 2020.

    Mr Mabawonku also added that, ” Looking forward, we expect that the strong growth will be sustained despite the tough business climate as we execute our customer experience improvement initiatives built around a digital first banking strategy and become first in class in that sphere. The bank will also continue to focus on our digital business, which is a key boost for customer acquisition, consumer lending and transaction volumes while not neglecting our corporate and commercial play.

    ” On our commercial business, we will continue our aggressive strategy to improve our lending business alongside trade and other revenue lines. We have also unveiled our new Mission and Vision statements which underpins our corporate strategy. We want to be the dominant digital platform in Africa delivering seamless financial service’.

    Gross earnings increased by 15.35% (Y-o-Y) to ₦92.14billion in FY 2021 from ₦79.88billion in FY 2020.Profit Before Tax (PBT) of ₦12.3billion in FY’21, an increase of 108.26% YoY from N5.95billion in FY’20 while. Profit After Tax (PAT) of ₦8.93billion in FY’21, representing an increase of 94.53% YoY from N4.59billion in FY’2020.

    Net-Interest Income grew to ₦39.87billion in FY 2021from ₦30.86billion in FY 2020; growth of 29.22%.Non-Interest Income also increased from ₦16.83billion in FY 2021 to ₦18.83billion; a growth of 11.91%.

    Deposit Liabilities up by 15.23% to ₦927.47billion in FY 2021 from ₦804.87billion in FY 2020. Loans and Advances to Customers rose by 16.33% to ₦418.86billion in FY 2021 from ₦360.08billion in FY 2020.

    Similarly, Total Asset increased by 20.23% to ₦1.164.52billion in FY 2021 from ₦968.58billion in FY 2020.Key RatiosReturn on average equity of 17.26% in FY 2021 (FY 2020)

  • Wema Bank’s profit rises by 94% in 2021, beat banking industry on earnings growth

    Wema Bank’s profit rises by 94% in 2021, beat banking industry on earnings growth

    Wema Bank’s profit rose by 94% in 2021, beating the banking industry on earnings growth as shown by the bank’s unaudited financial report for the 2021 operations.

    The report just released shows a top industry record growth of 94 per cent in after-tax profit from N4.6 billion in 2020 to roughly N9 billion for the year.

    “This is a confirmation of our earnings outlook for the bank based on the interims that a star performance for the 2021 financial year is to be expected from the bank at full year,” a statement by Wema Bank’s management reads.

    The bank’s management added a further improved final quarter to an outstanding growth record at the end of the third quarter to take a distant lead in earnings growth in the banking industry in 2021. The bank raked in N2.7 billion profit in the fourth quarter that topped up the nine-month profit figure of N6.2 billion to N8.9 billion at full year.

    “The bank’s managing director/CEO, Mr Ademola Adebise, is driving a new growth impetus for the bank towards positioning as a leading innovative financial institution through digital growth. His bank’s digital bank – ALAT is reputed as Africa’s first fully digital bank,” the statement added.

    Wema Bank’s outlook at the end of the third quarter reads: “the bank is looking quite good to register the 2021 financial year as one of outstanding earnings performance. Based on the quarterly profit records, the bank could come close to doubling the closing profit at the end of the year”.

    This is a defiant growth for the bank in a year in which many banks struggled with challenges of low-interest margins and a resurgence of cost of funds and credit losses. It marks the strongest growth in profit that the bank has seen in many years, beating even the outstanding growth of 56 per cent in after-tax profit in 2019 – when the bank closed with N5.2 billion profit.

    The year-on-year drop in credit losses extended from 56.5 per cent at the end of the third quarter. Wema Bank closed the 2020 financial year with a loan loss expense of N5.6 billion. The drop in credit losses in 2021, therefore, represents a reduction of over N4.3 billion over the review period.

    The net positive impact of the cost-saving reflected on net interest income after loan loss charges – which rose by over 45 per cent to close at N36.6 billion at full year. The ability to convert earnings into net income/profit at several stages in the cost/income flow is the summary of the bank’s .

    Just as we anticipated, Wema Bank has issued one of the most improved corporate earnings stories from the banking industry for the 2021 financial year. The bank has not attained a profit margin that high in many years.

    It earned over 23 kobo per share in the full year, up from about 12 kobo per share in the prior fiscal year. A dividend announcement is to be expected when the audited financial report is released in the coming weeks. The bank has been consistent with a dividend payout at 4 kobo per share over the preceding two years.

  • Wema Bank faults call for removal of its MD/CEO

    Wema Bank faults call for removal of its MD/CEO

    Nigeria’s leading digital bank, Wema Bank Plc has faulted call for the sack of Ademola Adebise, the Managing Director/Chief Executive Officer (CEO) of the bank.

    TheNewsGuru.com (TNG) reports Wema Bank faulted the call in a statement on Saturday while reassuring its stakeholders that it continues to operate with best-in-class governance processes.

    Recall that Transparency Nigeria Group had asked the Central Bank of Nigeria (CBN) to remove Adebise.

    However, the bank faulted the premise on which the non-governmental organisation call for the removal of its Managing Director/CEO, describing the call as baseless.

    Wema Bank emphasized that it has no political ties and that the bank is not an agent, allies or proxy of any polician in Nigeria.

    The bank reassured its customers and stakeholders that it has and would continue to operate with the highest level of corporate governance, following all rules, policies, and procedures.

    “We have no links to any political party and neither are we agents, allies or proxies of any politicians in the country. We are a financial institution solely committed to financial intermediation to enable and fast track the socio-economic development of the country,” the bank said.

    The statement further explains that Wema Bank’s observance and strict adherence to due diligence and extant rules and regulations is why it is the oldest surviving indigenous bank in Nigeria.

  • The facts behind Wema Bank’s multiplying profit

    The facts behind Wema Bank’s multiplying profit

    Wema Bank Plc experienced quite a rosy year in 2021 with a N6.2 billion closing profit for the third quarter, well ahead of the full-year figure of N4.6 billion in 2020.

    The profit figure for the nine months of operations is a high jump of 138.5 per cent year-on-year from the corresponding figure of N2.6 billion in the prior fiscal year.

    The bank is looking quite good to register the 2021 financial year as one of outstanding earnings performance. Based on the quarterly profit records, the bank could come close to doubling the closing profit at the end of the year.

    Its exceptional growth is a function of three major developments on both sides of cost and income with cost reductions leading the way.

    Big cost savings are coming from interest expenses as well as loan impairment charges and management is converting the same into profit. Defying the rising cost of funds in the financial markets, the bank cut interest expenses by 12 per cent year-on-year to N23 billion at the end of September.

    That represents a cost reduction of over N3 billion in interest expenses over the review period. This is further to a reduction of 23 per cent in the cost of funds at the end of 2020.

    A major development on the side of cost reduction in the third quarter was recorded in loan impairment expenses with the appearance of a net write back in the quarter. That overturned the bank’s position from a 12 per cent growth in loan impairment charges at half a year to a drop of 56.5 per cent year-on-year at the end of the third quarter.

    The bank closed the third quarter trading with a loan impairment charge of N811 million. It closed the preceding financial year with a loan loss expense of N5.6 billion. The drop in credit losses represents a reduction of over N1 billion over the review period.

    On the side of earnings, three income lines held up Wema Bank’s revenue performance in 2021. Net fee and commission income grew at a cruising speed of 69 per cent year-on-year to close at N8.7 billion at the end of September 2021.

    Other income followed with a year-on-year increase of over 52 per cent to N1.6 billion. The bank’s main revenue line – interest income also grew by 11 per cent to N51.5 billion over the period.

    The revenue increases were diluted by a drop of 76 per cent in net trading income to close at a little over N1 billion. That lowered the year-on-year growth in the gross income of the bank to 9 per cent to close at over N63 billion at the end of September.

    This is a step up in gross earnings from an 8 per cent improvement at half a year. Wema Bank sustained a rebound at the end of the third quarter from a drop of 11 per cent in gross earnings at the end of the preceding year.

    With the drop in interest expenses against an improvement in interest income, the bank achieved a robust growth in net interest earnings. Net interest income rose by 41.5 per cent year-on-year to over N28 billion at the end of the third quarter.

    The impressive growth was still improved by the drop in loan impairment expenses, leading to top record growth of 51.5 per cent in income net of loan loss charges, amounting to N27.6 billion at the end of the third quarter.

    The bank maintained a good combination of improving revenue and generally declining costs, which powered its multiplying profit in the year. It can retain a good part of the gains in revenue as interest and loan impairment expenses drop over the review period.

    The favourable cost-income balance stretched out margins further for the bank in the third quarter. Net profit margin improved from 4.6 per cent in the same period in 2020 to almost 10 per cent at the end of the third quarter operations in 2021.

    It is also a further improvement in net profit margin from 9 per cent at the half-year. The bank has not attained a profit margin that high in many years. That seems to set the stage for one of the most improved corporate earnings stories from the banking industry to come from Wema Bank in 2021.

    The bank earned over 21 kobos per share at the end of the third quarter operations, up from 9 kobos per share in the same period in the prior fiscal year.

    Wema Bank closed the 2020 operations with earnings per share of 12 kobos. Dividend per share has been regular at 4 kobos per share over the preceding two years.

  • Wema Bank appoints two Non-Executive Directors

    Wema Bank appoints two Non-Executive Directors

    Wema Bank Plc has announced the appointment of two Non-Executive Directors to its Board of Directors following the approval of the Central Bank of Nigeria.

    The two new directors are Prince Olusegun Adesegun and Mr Adeyemi Adefarakan, both of whom are bringing a wealth of corporate administrative experience to the bank.

    Prince Olusegun Adesegun is a Psychologist with a Masters’ Degree in Industrial Psychology from the University of Ibadan. He worked in Pyramid Products Limited, starting as Manager in Training and rose to become the General Manager of the then Eastern Zone in 1988. Upon retirement, he engaged in private business and has over time garnered experience in marketing administration, management, and supply chain logistics solutions. He eventually became the CEO of Pecol Ventures Limited – a cash crop export and paper products company which he helped grow from a small producer to a large, world-class Agric-Export firm.

    Between 2011 – 2015, Prince Olusegun Adesegun served as the Deputy Governor of Ogun State. He is currently a Career Counsellor and Consultant for high-quality investment decisions.

    In a career that spans 20 years, Adeyemi Adefarakan joins Wema Bank’s Board of Directors with valuable experience in global investment banking, portfolio risk, asset, and financial management exposure. He graduated with a BSc (Hons) in Economics & Accountancy from the prestigious City University, London, and holds a master’s degree in International Securities, Investment & Banking from the acclaimed ICMA Centre at the University of Reading, U.K. He is also an alumnus of the Emerging CFO: Strategic Financial Leadership Programme at Stanford Graduate School of Business, USA, and currently pursuing a Global CEO Africa Programme in the triumvirate of business schools comprising Lagos Business School, Strathmore Business School (Nairobi, Kenya) and Yale School of Management (Connecticut, USA).

    He forged his career on the trading floors of some of London’s financial powerhouses including State Street Global Markets, DRW Investments, JP Morgan Chase, Deutsche Bank and HSBC Global Asset Management.

    In his years in London, he traded both vanilla and complex instruments and risk-managed multi-billion-dollar multi-asset portfolios.Mr Adeyemi currently serves as the Group Chief Financial Officer and an Executive Director on the board of CBSL (Continental Broadcasting Service Limited) alongside other board positions where he creates and extracts shareholder value through active board engagement.

    Speaking on the appointments, Mr Ademola Adebise, MD/CEO of Wema Bank said: “It thrills us to welcome the new appointees to the Board of Wema Bank. The decision to appoint Mr Yemi and Mr Olusegun is because of their wealth of experience in corporate and public administration which is key to the success of the Board of Wema Bank. We believe their skills and industry will be valuable to the bank as we work to actualize our goals of becoming the Most Dominant Digital Banking Platform in Nigeria.

  • Wema Bank Employees Empower Underprivileged Women Traders In Ferry Community

    Wema Bank Employees Empower Underprivileged Women Traders In Ferry Community

    Employees of Wema Bank Plc, the leading Innovative bank in Nigeria, have raised the bar in corporate social investment by building a pool of funds for underprivileged women empowerment to expand their scope of business under the auspices of Project Ferry.

    Through the salary for love initiative, employees of the bank in the Lagos Region led by the project champions selected 47 underprivileged women at Ferry Community in Oworoshoki, Lagos for the provision of seed funds.

    L-R: Head, Corporate Sustainability and Responsibility, Wema Bank Plc,
    Bimbo Agbejule; Regional Manager, Mainland, Lagos, Aramide Awosanya and
    Project Champion, Salary for Love/Project Ferry, Wema Bank Plc, Adenike Agboola-Fayemi, during the bank’s Women empowerment initiative for the Ferry Community, Oworoshoki, Lagos… recently.

     

    Speaking at the empowerment/financial literacy ceremony where debit cards loaded with cash were presented to the beneficiaries, the Regional Manager Lagos Mainland Mrs Aramide Awosanya, said the bank was interested in helping them to grow their businesses and succeed.
    Speaking further, she advised the beneficiaries to separate the seed fund grants from the money for social activities, reminding them that it is for business expansion.
    “The funds contributed by our employees from their salaries are not for buying clothes, shoes or for organizing parties. Rather, the money is to assist you to grow your businesses, make more profit and become very successful. So, don’t spend it frivolously. When we see you again some months from now, we want to see changes, we want to see progress, and we want to see signs of prosperity”, she said.
    Also speaking at the event, the Head, Retail Segment of the bank, Mr Mudashiru Hakeem, described the bank and its employees as good corporate citizens who take delight in the wellbeing and success of the people in their host communities. She advised them to keep good accounts of their daily transactions, warning against spending both capital and profit.
    Hakeem who gave them many business and investment tips also advised them to engage in businesses that they understand very well but not to go into any business because many people are going into it. He also enlightened them on other products of the bank which he recommended to them for patronage.

    Salary for love is a corporate social responsibility of the employees of Wema Bank aimed at lending a helping hand to the poor and underprivileged people in the society and women traders who operate under the constraint of capital to scale up their petty trades.

    For more information visit the bank’s website at www.wemabank.com

  • Wema Bank appoints Obioha Obiagwu as Executive Director

    Wema Bank appoints Obioha Obiagwu as Executive Director

    The Board of Directors of Wema Bank Plc. on Friday announced the appointment of Mr. Obioha Chukwuemeka Obiagwu as an Executive Director of the Bank.

    According to the bank, the appointment which has been approved by the Central Bank of Nigeria (CBN) takes effect from April 1, 2021.

    The new executive director is a multi-disciplinary professional with a background in Accounting, Insurance, Corporate Finance, Stockbroking and Public Finance. He has over three (3) decades experience in banking, financial services and the public service.

    Early in his career at Fidelity Bank Plc, he successfully repositioned and grew a subsidiary which he eventually led as the Group Managing Director & CEO. At different times, he creditably led the Human Resources, Corporate Services, Transaction Support Services, Corporate Finance, Regional Banking as well as the Retail and Commercial Banking arms of the bank.

    He was a Non Executive Director of Fidelity Pension Managers where he also served as Chairman of the Board, Audit Committee.

    He left Fidelity Bank Plc. in 2015 after 20 years of meritorious service and in January 2016, joined the Federal Inland Revenue Service as a Director with responsibility for Enforcement. He was also a Member of the Technical Committee of the Board and
    Chairman of the Budget Committee of FIRS, among many other roles.

    Emeka is an alumnus of the Lagos Business School (SMP 16) as well as Harvard Kennedy School of Government Boston, Massachusetts USA, where he obtained an Executive Certificate in Economic Development. He has had the privilege of studying
    at some of the world’s leading institutions for Executive Business Education, such as, INSEAD Business School, Fontainebleau, France; Kellogg School of Management to mention a few.

    Mr. Obiagwu is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN); Fellow, Chartered Institute of Stockbrokers; Honorary Senior Member, Chartered Institute of Bankers of Nigeria; Fellow, Chartered Institute of Taxation; and Associate,
    Chartered Insurance Institute (London).