Home News Wema Bank Earnings hit N11.3 billion in Q1

Wema Bank Earnings hit N11.3 billion in Q1

LAGOS (Sundiata Post) – Wema Bank has been able to deliver top line growth with Gross earnings increasing by 6.1% to ₦11.3 billion compared to ₦10.6 billion in the same period last year according to its Quarter One (Q1) of its 2016 results. The Bank also grew its interest income by 8.2% to ₦9.7bn from ₦8.9 billion in Q1 2015.
While trading income has not been immune from the larger macro headwinds, its diversification strategies are yielding results as fee and commission income grew by 17.1% to ₦1.35 billion from ₦1.15 billion in the same period last year.
SundiataPost gathered that its commitment to optimizing costs was underpinned by a 2.2% decline in operating expenses to ₦5.14 billion from ₦5.25 billion in Q1 2015 despite inflationary pressures. The bank however experienced a year on year 4% decline in Net Interest Income to ₦4 billion. This was however mitigated by a 17% growth in our Non-Interest income to ₦1.3 billion   over the same period.
The loan to deposit ratio has held steady at 65% from 65.1% as at December 2015, in line with our selective approach to creating new risk assets. The Non-Performing Loans (NPL) ratio increased slightly to 2.89% from 2.67% in December 2015.
With Q1’16 largely subdued, the Bank expects the remainder of 2016 to record improvements, stemming from the implementation of the budget and continued fiscal reforms. This would translate into an up-tick in risk asset growth, targeted towards identified critical and viable sectors such as manufacturing and agriculture. Furthermore, the Bank expects stronger growth in retail deposit mobilization as it continues with the expansion of its branch network and e-banking channels.
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