Culled—Proshare
July 20, 2017/Proshare Markets
Wema Bank Plc today holds its H1’17 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The bank explained that the global environment fraught with uncertainty and volatility arising from inability to execute reform agenda and Brexit while domestic environment is improving as measured by PMI data while reform efforts continue within domestic environment.
Oil prices continue to remain volatile in H1’17 averaging $52.74/bbl as resurgent shale oil producers counteract production cuts led by OPEC and non-OPEC members while the CBN continues with its intervention in the FX market.
The bank continued to record improvement in retail strategy which impacted its performance in H1 2017. Since the launch of its ALAT service in May 2017, the bank has recorded the opening of 26,737 accounts with 41,630 transactions executed totaling N850m and total balance across all accounts put at N251,089,418.77. The bank updated that its upcoming features on ALAT includes – QR Payments, Recurring bill payments, Virtual card for foreign payments and cardless withdrawal.
• In a nutshell, below are the key takeaways from the H1 2017 earnings presentation made by the bank management;
• The bank has opened one branch as at H1 2017 and is expected to open two more before the end of 2017.
• The bank’s NPL ratio closed at 4.91%, a decline from 5.07% reported in 2016FY as loan recoveries is largely accountable for the reduction in NPL ratio
• The bank expects continued deposit growth from continued brand acceptance and positive contribution from ALAT
• The banks plans to continue its retail penetration strategy through improved retail volumes from campus storms, alliance with Telcos and Fintechs, mobile and digital banking with 2017E put at 15%; and
• The bank expects its loan growth to slow as it monitors it domestic environment.
