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THISDAY • WEDNESDAY, MAY 20, 2015<br />
BUSINESSWORLD<br />
25<br />
EQUITIES WATCH<br />
Wema Bank Shows Resilience at 70<br />
After 70 years, the only surviving indigenous bank, Wema Bank Plc, remains<br />
competitive, rendering satisfactory services and reporting improved results, writes<br />
Goddy Egene<br />
Wema Bank is regarded as the<br />
only surviving indigenous<br />
bank. The bank is celebrating<br />
its 70th anniversary.<br />
Wema Bank has, over the<br />
years, survived several<br />
restructuring and challenges in the financial<br />
sector. Even when some banks went under and<br />
others got swallowed up during the 2005 banking<br />
consolidation, Wema Bank survived. Today the<br />
bank continues to survive in the competitive<br />
banking environment and is putting in place<br />
strategies to perform better in the years after<br />
operating for 70 years.<br />
Corporate History<br />
Widely reputed as the longest surviving and<br />
most resilient indigenous Nigerian bank, Wema<br />
Bank Plc was Incorporated in 1945 as a Private<br />
Limited Liability Company (under the old name<br />
of Agbomagbe Bank Limited). It commenced<br />
banking operations in Nigeria the same year<br />
and later transformed into a Public Limited<br />
Company (PLC) in April 1987 and was listed<br />
on the floor of the Nigerian Stock Exchange<br />
(NSE) in January 1990. On February 5, 2001,<br />
Wema Bank Plc was granted a universal banking<br />
licence by the Central Bank of Nigeria (CBN),<br />
thus allowing the bank provide the Nigerian<br />
public with diverse financial and business<br />
advisory services.<br />
But in 2009, Wema Bank underwent a strategic<br />
repositioning exercise spearheaded by a new<br />
management team that has seen its profile rise<br />
considerably, which finally culminated into its<br />
taking a sound strategic decision to operate as<br />
a commercial bank with regional scope in<br />
South-South, South-West, Lagos and Abuja in<br />
2011.<br />
Wema Bank board is led by Mr. Adeyinka<br />
Asekun as the chairman while Segun Oloketuyi<br />
is the Managing Director/CEO. Nurudeen<br />
Adegbenro is executive director, South-West<br />
Bank; Ademola Adebise, executive director<br />
(Lagos and South-South Bank) and Moruf<br />
Oseni, Abuja Bank.<br />
Other non-executive directors of the bank<br />
include: Wole Akinleye, Abubakar Lawal,Folake<br />
Sanu, Adebode Adefioye, Samuel Durojaiye,<br />
Samuel Durojaiye, Tina Vukor-Qaushie, Babatunde<br />
Kasali and Abolanle Matel-Okoh.<br />
Financial Performance<br />
Like most banks, Wema Bank Plc posted<br />
impressive performance for the year ended<br />
December 31, 2014. The bank reported a 58.8<br />
per cent growth in its profit before tax for the<br />
year. The bank also grew its total asset grew<br />
by 15.6 per cent in the year under review. The<br />
bank’s profit before tax climbed from N1.9 billion<br />
in 2013 to N3.09 billion in 2014.<br />
It total assets also climbed by 16 per cent to<br />
N382.6 billion, compared with N330.9 recorded<br />
the corresponding year. Also, gross loans and<br />
advances to customers jumped by 51 per cent<br />
to N149.3 billion in 2014, up from N98.6 billion<br />
recorded in December 2013. Similarly, its customer<br />
deposits at the end of 2014, was up by 19 per<br />
cent to N258.9 billion, while net interest income<br />
stool at N18.5 billion.<br />
The bank said it recorded a 19 per cent growth<br />
in customer deposit volumes largely from its<br />
commercial and retail segments of the market in<br />
spite of the tightened liquidity regime exacerbated<br />
by the hike in cash reserve requirement.<br />
Commenting on the results, Oloketuyi said:<br />
“It gives me great pleasure to report that Wema<br />
Bank continues to record year-on-year improvement<br />
in its financial performance. The bank<br />
has improved significantly on its profitability<br />
and customer base despite shrinking margins<br />
and intense competition. The progress recorded<br />
is a result of the continued execution of our<br />
three-year growth strategy.”<br />
According to him, loans and advances to<br />
customers increased by 51 per cent guided by<br />
a strong risk management structure, which is<br />
evidenced by the level of non-performing loans<br />
at 2.49 per cent.<br />
Oloketuyi<br />
“Wema Bank has become a stronger, more efficient,<br />
resilient and customer-focused organisation<br />
with a robust risk and governance structure.<br />
The bank has realigned its business focus to<br />
concentrate on its key area of strength – retail<br />
banking.<br />
“We have used technology to our advantage,<br />
deploying in-branch solutions, mobile and internet<br />
applications and other social media tools to<br />
drive customer patronage and to reduce our<br />
cost to serve. We have continued to contain<br />
our operating expenses despite the increased<br />
inflationary environment while at the same<br />
time there was significant improvement in<br />
our fee-based income lines.<br />
“As we turn 70 as the premier indigenous<br />
bank in Nigeria, we are glad to unveil a “NEW”<br />
Wema Bank that responds faster and better to<br />
customers’ needs whilst adapting more quickly<br />
to the ever-changing dynamics of the industry,”<br />
it added.<br />
According to the statement, the differentiating<br />
factor in what it described as the new Wema<br />
Bank is its agility “in responding to our constantly<br />
changing business environment; our firm<br />
commitment to being the bank of choice; our<br />
relentless determination to continue to raise the<br />
400<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
FINANCIAL HIGHLIGHTS<br />
DEC.<br />
2014<br />
N3.1bn<br />
DEC.<br />
2013<br />
N1.9bn<br />
PROFIT BEFORE<br />
TAX<br />
DEC.<br />
2014<br />
N2.4bn DEC.<br />
2013<br />
N1.59bn<br />
PROFIT AFTER<br />
TAX<br />
standards of customer service; whilst ensuring<br />
that we consistently deliver superior returns<br />
to all stakeholders.<br />
“We are focused on stepping further to<br />
becoming one of the most efficient mid-tier<br />
banks in Nigeria in no distant future. We are<br />
confident that we will sustain the momentum<br />
and improve on our profitability and volume<br />
growth in 2015.”<br />
Turning 70 years<br />
Although the bank is 70 years this year,<br />
Oloketuyi said they believe and act like a<br />
young, contemporary and vibrant organisation.<br />
“Managing any institution irrespective of its<br />
age requires a deliberate and conscious effort in<br />
building organisational capability, best-in-class<br />
structures, processes and controls. For Wema<br />
Bank specifically, yes we are 70 in age, but we<br />
believe and act like a young, contemporary<br />
and vibrant organisation. We have spent a<br />
significant amount of time in discarding old<br />
processes and techniques and make sure we<br />
adopt global best practices. We focus a lot on<br />
talent and skills development, we ensure we<br />
improve in our service delivery and customer<br />
experience. For us, every day is a new learning<br />
DEC.<br />
2014<br />
N149bn DEC.<br />
2013<br />
N98.6bn<br />
LOANS AND<br />
ADVANCES<br />
DEC.<br />
2014<br />
N258bn DEC.<br />
2013<br />
N217.7bn<br />
CUSTOMER<br />
DEPOSITS<br />
DEC.<br />
2014<br />
N382bn<br />
DEC.<br />
2013<br />
N331bn<br />
TOTAL ASSETS<br />
experience; we aim to improve and get better<br />
every day. It’s been tough, yet rewarding and<br />
we are glad that the hard work over the years<br />
is yielding positive results,” he said.<br />
Unveiling New Brand<br />
As part of activities to celebrate the 70th<br />
anniversary, Wema Bank unveiled its new logo<br />
and brand identity. According to the bank, the<br />
identity is continuation of the strides the bank<br />
has made in the past three years to revamp<br />
the brand and position itself as a modern, more<br />
customer-centric organisation.<br />
“The rebranding has been a thorough business<br />
evolution. It speaks about the evolution of the<br />
relationships built with all stakeholders over<br />
the years as signified by interconnecting lines<br />
which form a W,” the MD explained.<br />
He noted that as part of the rebrand, the bank’s<br />
traditional Purple colour has been revised to<br />
project a more vibrant, welcoming and modern<br />
outlook.<br />
“The customer at the centre of everything we<br />
do and nurturing great relationships has been<br />
a hallmark of Wema Bank since its inception.<br />
We have also made significant investments in<br />
people, technology and process improvements<br />
in the last few years to lay a solid foundation<br />
for this rebranding to come to life.I am very<br />
proud to see the great changes that have taken<br />
place internally and externally at Wema Bank<br />
and we are committed to offering even better<br />
services into the future”, Oloketuyi stated.<br />
The Wema Bank boss said it turn 70 as the<br />
longest surviving indigenous bank in Nigeria,<br />
“we are glad to unveil a New Wema Bank that<br />
responds faster and better to customers’ needs<br />
whilst adapting more quickly to the ever-changing<br />
dynamics of the industry. We are focused on<br />
moving Wema Bank to become one of the most<br />
efficient mid-tier banks in Nigeria in no distant<br />
future. We are confident that we will sustain the<br />
momentum and improve on our profitability<br />
and volume growth from year to year.”<br />
Regaining National Bank Status<br />
Wema Bank is currently operating with regional<br />
authorisation from the CBN, operating in the<br />
12 states of the South-West and South-South<br />
geo-political zones and the Federal Capital Territory.<br />
However, it is making efforts to return<br />
as a national bank.<br />
Prior to the new licensing regime, Wema Bank<br />
had operations in 158 branches across 27 states<br />
of the federation.<br />
Oloketuyi said the decision to scale down<br />
operations in 2010 and operate as a regional bank<br />
was a deliberate interim measure to reposition<br />
the bank for better performance.<br />
“The resultant shrinkage in the geographic<br />
space of operations enabled us to focus business<br />
development on our areas of strength as<br />
a repositioning strategy in the short term. We<br />
were also able to wind down operations in<br />
locations where the bank did not have viable<br />
business. Having stabilised the bank through<br />
improved processes, systems and people, we<br />
are well positioned to replicate our new and<br />
tested service delivery model in other locations<br />
outside our current geographic space. The bank<br />
has applied to the CBN for a national licence<br />
and we are following up to fulfill all necessary<br />
conditions for the final approval. We hope to<br />
conclude the process this year,” he said.<br />
The CEO said Wema Bank has become a<br />
stronger, more efficient, resilient and customerfocused<br />
organization with a robust risk and<br />
governance structures in place to support its<br />
growth plan.<br />
“The bank has realigned its business focus to<br />
concentrate on its key area of strength, which<br />
is retail banking. We have used technology to<br />
our advantage, deploying in-branch solutions,<br />
mobile and internet applications and other social<br />
media tools to drive customer patronage and to<br />
reduce our cost to serve. We have continued<br />
to contain our operating expenses and at the<br />
same time reporting significant improvement<br />
in our fee-based income lines,” he said.