By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Regional lender, Wema Bank Plc on Thursday said its half-year Profit before Tax (PBT) climbed up 266 percent to N1.7 billion from N464.7 million recorded in the same period of 2013.
This is contained in the bank’s filing to the Nigerian Stock Exchange (NSE).
Similarly, gross earnings grew 25 percent to N12.5 billion in Q2 of 2014, from N10 billion in the corresponding period of 2013.
A statement obtained by InvestAdvocate quoted Segun Oloketuyi managing director/chief executive officer (MD/CEO) of the bank as saying “We are pleased to announce that WEMA Bank continued to demonstrate strong improvements in profitability and balance sheet efficiency in the first half of 2014. Our Profit Before Tax leapt 266% to N1.7 billion and the Bank’s Net Interest Margin has improved to 7.7%reflecting a more efficient restructuring of our deposit mix in favour of cheaper funds.
We continued the process of redeploying our resources into higher yielding assets while keeping a close eye on operating expenses. Loans and advances grew by 17% from December 2013 whilst our cost of funds continues to reduce,”.
Oloketuyi said in the review period the bank secured trade lines from foreign correspondent banks and development finance institutions to support our trade finance, the real estate sector and SME lending.
He affirmed that project LEAP the bank’s strategic transformation agenda, has continued to provide it with efficiency gains, ‘’and we intend to maintain the pace of these improvements throughout the second half of 2014 putting us on course to produce better performance and commensurate returns to shareholders by the end of the year,’’ he said.
The Wema Bank chief further affirmed that the goal is to continue the bank’s organic expansion programme and establish presence in areas that have significant growth potential, while making significant investments in alternative channels and diversifying its product offerings. ‘’With a continued focus on good corporate governance and improved risk management practices, we are well positioned to continue to increase our market share in the near term and deliver value to all stakeholders,” Oloketuyi said.
As at the close of business at the Nigerian bourse, share price of the bank opened at 0.97 kobo and closed at N1.01; gaining 0.4 kobo and increasing 4.12 percent.
