Wema Bank has maintained its strong growth momentum since its capital reconstruction. As at 9M:2019, revenue and earnings had grown by 32.34% and 56.43% respectively. We acknowledge the efforts of the bank at effectively utilizing its assets to obtain high returns. The bank’s impressive performance was marked with impressive growth in deposits (+23.72%) and an expansion of the loan book (+17.22%), to meet the new regulatory ratio prescribed by the CBN. Although we have seen impressive developments post capital reconstruction, the intentions of the CBN to recapitalize the banking sector casts a cloud on the ability of the bank to pay dividend at the end of the financial year. Given its current equity base of NGN53.71bn as at September 2019, the bank may require additional capital to match up to the required minimum. We, therefore, expect the bank to focus on reinforcing its capital position ahead of the announcement of a new capital base for Deposit Money Banks (DMBs). Nonetheless, we remain assured of the bank’s ability to maintain its growth momentum in the near to medium term. Kindly find attached the full report.
Earnings Update- WEMA- 9M: 2019.
Wema Bank has maintained its strong growth momentum since its capital reconstruction. As at 9M:2019, revenue and earnings had grown by 32.34% and 56.43% respectively. We acknowledge the efforts of the bank at effectively utilizing its assets to obtain high returns. The bank’s impressive performance was marked with impressive growth in deposits (+23.72%) and an expansion of the loan book (+17.22%), to meet the new regulatory ratio prescribed by the CBN. Although we have seen impressive developments post capital reconstruction, the intentions of the CBN to recapitalize the banking sector casts a cloud on the ability of the bank to pay dividend at the end of the financial year. Given its current equity base of NGN53.71bn as at September 2019, the bank may require additional capital to match up to the required minimum. We, therefore, expect the bank to focus on reinforcing its capital position ahead of the announcement of a new capital base for Deposit Money Banks (DMBs). Nonetheless, we remain assured of the bank’s ability to maintain its growth momentum in the near to medium term. Kindly find attached the full report.