Banking
H1 2017: Wema Bank Optimises Loan Book, Keeps NPL at 4.90%
By Dipo Olowookere
Wema Bank Plc, in its unaudited financial results for the 6 months ended June 30, 2017, said some achievements were recording during the period, including further optimising its loan book by focusing on recoveries and supporting transaction with good and steady cash flows.
This, it said, resulted in a 9.38% decline in the volume of Loans and Advances, while yield on assets improved.
Its Capital Adequacy Ratio (CAR) increased to 12.71% (H1’2017) from 11.06%, as at FY2016, whilst NPL remained below the 5% mark at 4.90% as at H1’2017.
Managing Director/Chief Executive Officer of the lender, Mr Segun Oloketuyi, while commenting on the results, stated that in the first half of the year, the bank operated in an uncertain and challenging domestic economic environment.
“While we recorded notable improvements in the second quarter of the year, especially around foreign currency management, the execution of fiscal policies and the continued tight monetary policy impacted on consumers’ disposable income and invariably on banking sector performance.
“Despite the relatively tough climate, Wema Bank recorded success on a number of financial and non-financial priorities. Specifically, Gross Earnings recorded stable growth, increasing by 25.17% from N24.26 billion (H1’2016) to N30.37 billion (H1’2017).
“This growth resulted from a 25.84% increase in interest income to N25.37 billion and a 21.92% rise in non-interest income where we continue to see impressive growth, led by income from our mobile and digital banking offerings.”
Mr Oloketuyi further stated that, “The impact of the growth in gross earnings was however muted by the higher cost of funds within the sector.”
“Despite this, we still maintained a decent interest margin while recording a 10% growth in Profit before Tax (PBT),” he added.
He disclosed that Wema Bank’s growth strategy – Project LEAP – revolves around the Bank’s Retail business and this was further strengthened by the May 2017 launch of ALAT, Nigeria’s first fully digital Bank.
ALAT is the first of its kind with its end-to-end digital offering and customer interaction.
The bank’s target is to onboard an average of 1,000 new customers per day and we are on track to achieve that. The Bank also continues to improve its customer acquisition through the launch of its Agency Banking initiative and the impressive performance of its USSD platform (*945#). Indeed with this 3-pronged strategy, Wema Bank is poised to be Nigeria’s leading Retail Bank.
“We have commenced the second half of the year with cautious optimism, especially around the implementation of the needed economic reforms and execution of the 2017 budget to ensure stimulation of economic growth.
“The expectation is that the country will exit recession in the 2018 financial year, but this will be dependent on a diligent execution of the reform programme,” he added.
Further discussions with Ademola Adebise, the Deputy Managing Director, revealed that for Wema Bank, the emphasis in the next six months is to build and consolidate on the gains within the Digital Banking space, where the Bank presently leads and to improve on customer acquisition and invariably cost of funds.
In sharing the Bank’s growth plan, the Deputy Managing Director revealed that the Bank has opened three branches in the North.
The Bank will expand further with two (2) other branches within the North Central Region and at least one in the East before the end of the year.
“We continue to improve on the brand perception of the Bank, both across physical channels and through social media engagement,” according to Adebise.
The Bank has renovated more than 70% of its branch network to make these service channels more contemporary both in look and feel, and in in the provision of infrastructure. This will continue as the economic climate improves.
On the Bank’s growth plan and capital raise, Tunde Mabawonku, the Chief Finance Officer stated that, “we are also closely watching interest rates in the money market and relevant government policies to determine the timing of the second tranche of our Debt Capital issue, to further boost our ability to grow our franchise. We have continued to engage both local and international fund providers and have improved on our capacity to do business especially within the Trade Finance space.
The Bank is rated by two rating agencies (Fitch & GCR) and our credit rating remains investment grade and a stable outlook.
By Adedapo Adesanya
The operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc have been revoked by the Central Bank of Nigeria (CBN) as part of efforts to strengthen the mortgage sub-sector and enforce compliance with banking regulations.
Mortgage banks are financial institutions that provide home loans and other housing finance products, and so, they are strictly regulated by the CBN to protect customers and ensure the stability of Nigeria’s financial system.
According to a post by the Acting Director of Corporate Communications of CBN, Mrs Hakama Ali, on the apex bank’s X handle on Tuesday, the affected institutions were accused of violating several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
The revocation is part of the central bank’s ongoing efforts to maintain a safe and reliable banking sector, protect customers’ deposits, and ensure that only financially sound institutions operate in the mortgage market.
“The breaches included failure to meet the minimum paid-up share capital requirement, insufficient assets to meet liabilities, being critically undercapitalised with a capital adequacy ratio below the prudential minimum, and non-compliance with directives issued by the CBN,” the post noted.
The CBN emphasised that the revocation aligns with its mandate to ensure financial system stability and maintain public confidence in the banking sector, assuring it is committed to promoting a sound and resilient financial system in Nigeria.
By Adedapo Adesanya
A five-member panel of the Supreme Court, led by Justice Lawal Garba, last Friday ruled in favour of Fidelity Bank in its appeal against Sagecom Concepts Limited.
The judgment brings definitive closure to a legacy case that has attracted attention across the financial sector for more than two decades. It also marks a significant victory for Fidelity Bank in a long-running legal dispute.
In a motion dated October 8, 2025, Fidelity Bank sought clarification from the Supreme Court, requesting a consequential order that the judgment debt be paid in Naira. The bank also asked that the interest rate be set at 19.5 per cent per annum rather than 19.5 per cent compounded daily.
It also requested the exchange rate used for conversion be the rate applicable as of the date of the High Court judgment, in line with the Supreme Court’s decision in Anibaba v. Dana Airlines.
Fidelity Bank further requested the judgment debt be fixed at N30,197,286,603.13 and that interest on this amount be payable at 19.5 per cent per annum until full settlement.
In the judgment delivered by Justice Adamu Jauro, the apex court granted the bank’s first three prayers but declined the fourth and fifth. As a result, the judgment sum will be paid in Naira at an annual interest rate of 19.5 per cent, rather than the daily compounded rate previously awarded by the High Court.
The Supreme Court equally affirmed that the applicable exchange rate should be the rate as of the date of the High Court judgment, consistent with its earlier decision in Anibaba v. Dana Airlines.
The dispute originated from a legacy transaction involving the former FSB International Bank, which merged with Fidelity Bank in 2005. It stemmed from a 2002 credit facility extended to G. Cappa Plc and subsequent legal proceedings tied to the collateral.
This ruling provides finality for years of litigation and confirms a significantly lower liability than the N225 billion previously speculated in the review of decisions leading up to the decision.
By Adedapo Adesanya
The operating licences of all legacy Bureau De Change (BDC) operators who failed to meet the new licensing requirements have been revoked by the Central Bank of Nigeria (CBN).
This happened after the central bank streamlined the BDCs to 82 in order to sanitise the foreign exchange (FX) market in the country.
The latest development was revealed by the apex bank in its Frequently Asked Questions document on the current reform of the bureau de change, published on its website on Tuesday.
According to the document, the CBN has now enforced the final cutoff, declaring that any BDC that did not meet the requirements by the end of November is no longer recognised.
“The guidelines provided a transition timeline of six months from the effective date, 3 June 2024, with a deadline of 3 December 2024, for all existing BDCs to meet the requirement of the new Guidelines or lose their licence(s). However, the management of the CBN graciously extended this deadline by another six months, which ended 3 June 2025, to give ample time for as many legacy BDCs desirous of meeting the new requirements to do so.
“Consequently, any legacy BDC that failed to meet the requirements of the new Guidelines as of 30 November 2025 has ceased to be a BDC, as its licence no longer exists. Please visit the CBN website for the updated list of existing BDCs in Nigeria,” the apex bank said.
According to the CBN, before its latest decision, an extended compliance window was granted under the revised BDC Guidelines. Existing operators were initially given six months, June 3 to December 3, 2024, to satisfy the new regulatory conditions.
The CBN later granted an additional six-month extension, which elapsed on June 3, 2025, to allow more operators to align with the updated standards.
The new measures form part of broader efforts by the CBN to strengthen transparency, compliance, and stability within Nigeria’s foreign exchange market.
The new CBN regulatory framework for BDCs, introduced in February 2024, mandated BDC operators to meet higher capital requirements. Tier-1 operators are required to meet a minimum capital requirement of N2bn, while Tier-2 operators must meet N500m as MCR.
The bank added that it would continue to receive applications on its Licensing, Approval and Requests Portal from prospective promoters, and those that meet the criteria will be considered for a license.
However, the CBN said it reserves the right to discontinue the licensing of BDCs at any time.
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