FMDQ Approves Wema Bank N50bn Commercial Paper

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By Nse Anthony-Uko

(Sundiata Finance) — FMDQ OTC Securities Exchange (FMDQ) said it has approved the registration of Wema Bank Plc N50 billion commercial paper (CP) programme to its platform.

The Exchange in a release to media, said this CP Programme registration strategically positions Wema Bank to easily and quickly raise short-term finance from the debt at a time in the future it determines suitable, through CP issues, within the CP Programme limit.

It added that FMDQ has continued to maintain its support for the development of the Nigerian debt capital markets (DCM) by steadfastly availing its efficient platform for the registration, listing, quotation and trading of debt securities.

“In line with the strategic objectives of the OTC Exchange to support institutional growth and stimulate continuous development of the Nigerian economy at large, FMDQ is set to host the 2017 Nigerian Debt Capital Markets Conference on 28, 2017, to yet again avail local and international participants a well-rounded platform to discuss and strategise on actionable steps to effectively position the Nigerian DCM for growth within the global financial markets space,” it stated.

It added that FMDQ has shown its steadfastness in aligning the Nigerian financial markets to international standards, and has, through the of product innovation and the championing of key development initiatives, continued to ensure that opportunities abound for the markets under its purview.

Speaking on the bank’ performance in the first half of the year, recently, the MD/CEO of Wema Bank, Segun Oloketuyi said, “In the first half of the year the Bank operated, in an uncertain and challenging domestic economic environment. While we recorded notable improvements in the quarter of the year, especially around currency management, the execution of fiscal policies and the continued tight monetary policy impacted on consumers’ disposable income and invariably on banking sector performance.

“Despite the relatively tough climate, gross earnings recorded stable growth, increasing by 25.17 per cent from N24.26 billion in H1, 2016 to N30.37 billion. This growth resulted from a 25.84 per cent increase in interest income to N25.37 billion and a 21.92 per cent rise in non-interest income where we continue to see impressive growth, led by income from our mobile and digital banking offerings.

“The Bank also further optimized its loan book in the first half of the year by focusing on recoveries and supporting transaction with good and steady cash flows. This resulted in a 9.38 per cent decline in the volume of Loans and Advances, while yield on assets improved. The Bank’ Capital Adequacy Ratio (CAR) increased to 12.71 per cent from 11.06 per cent, as at full year, 2016, whilst NPL remained below the five per cent mark at 4.91 per cent as at H1, 2017.” ‎