Wema Bank Suffers 31.09% Q2 Profit Loss

• Gets Fitch BBB Rating

Management of Wema Bank Plc has submitted the bank’s half year financial result ended June 30 2015 to the management of the Nigerian Stock Exchange (NSE) just as Fitch Ratings assigned BBB rating to the bank.

Highlights of the result show that the bank posted gross earnings of N20.87 billion from N20.82 billion in the comparable period of 2014, net income dropped to N9.06 billion from N9.71 billion, other operating expenses went down from N5.04 billion to N4.4.98 billion.

Profit before tax went down from N1.70 billion to N1.17 billion, profit after tax dropped from N1.447 billion to N997.209 million, representing a drop of N450 million or 31.09 per cent.

Loans and advances stood at N134.57 billion, down from N149.29 billion as at December 2014, deposits from customers also dropped from N234.10 billion, down from N258.96 billion as at December 2014, while non-performing loan ratio of grew from 2.5 per cent in the corresponding period of 2014 to  2.9 per cent.

Meanwhile, Fitch Ratings on Wednesday published Wema Bank Plc’s Long-Term Issuer Default Rating (IDR) of ‘B-’ with a Stable Outlook, Short-Term IDR of ‘B’ and Viability Rating (VR) of ‘b-’.

The rating agency also published Wema’s Long-term and Short-term National Ratings of ‘BBB-(nga)’ and ‘F3(nga)’, respectively.

The ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

Commenting on the results, Mr. Segun Oloketuyi, Managing Director/CEO of Wema Bank PLC, said; “Given the tough operating environment in the first half of 2015 attributable to economic headwinds, regulatory restrictions and political uncertainty, the Bank has been able to sustain its financial performance, albeit, on a lower level compared to the same period in 2014”.

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