Home Business WEMA Bank Q2 Profit Dropped By 31.09 Per cent, Gets Fitch BBB...

WEMA Bank Q2 Profit Dropped By 31.09 Per cent, Gets Fitch BBB Rating

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The Management of WEMA Bank Plc last week submitted the bank’s half year financial report ended June 30 2015 to the Nigerian Stock Exchange (NSE) as Fitch rated the bank BBB.

The detail of the results showed that the bank posted gross earnings of N20.87 billion from N20.82 billion in the comparable year. Net income of the bank also dropped to N9.06 billion from N9.71 billion, other operating expenses went down from N5.04 billion to N4.98 billion. Profit before tax went down from N1.70 billion to N1.17 billion; profit after tax also fell from N1.447 billion to N997.209 million, representing a percentage drop of 31.09 percent.

The banks loans and advances stood at N134.57 billion down from N149.29 billion as at December 2014.

The customers deposit also dropped from N234.10 billion down from N258.96 billion, while non-performing loan ratio grew from 2.5 percent to 2.9 percent in the preceding year.

However, Fitch ratings last week 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 Banks Long-Term and Short-Term National Ratings of ‘BBB-(nga) ‘F3 (nga) respectively. The BBB ratings indicated 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 its capacity.

Speaking on the result, the Group Managing Director/CEO Mr. Segun Oloketuyi, 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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