Banking
FY17: Wema Bank Grows Earnings by 20% as NPL Ratio Drops to 3.52%
By Dipo Olowookere
Mid-tier lender, Wema Bank Plc, on Wednesday released its audited financial result for the year ended December 31, 2017.
The innovative bank, which launched ALAT, Africa’s first fully digital bank, confirmed the growth of its gross earnings by 20.07 percent from N54.36 billion in FY2016 to N65.27 billion in FY2017.
The growth was supported by the launch of ALAT, Nigeria’s first fully digital bank enhancing Wema Bank’s already existing alternate platforms which recorded a combined growth rate of 205.67 percent in transactions executed and with an estimated 30,000 accounts opened monthly.
In the financial results analysed by Business Post, the lender recorded a drop in its profit before tax by 7.38 percent to N3.01 billion in the period under review from N3.25 billion in the previous year.
Also, the profit after tax went down by 11.72 percent to N2.26 billion from N2.56 billion.
Furthermore, the financial institution’s total assets depreciated by 8.46 percent to N388.15 billion last year from N424.04 billion two years ago.
In addition, customers’ deposits declined by 10.18 percent to N254.46 billion in 2017 from N283.30 billion in 2016.
However, shareholders’ funds increased in 2017 by 2.31 percent to N49.62 billion from N48.50 billion in 2016.
During the year under review, Wema Bank’s loan to deposit ratio was 84.82 percent from 70.86 percent as at December 2016, while the Non-Performing Loans (NPL) Ratio closed at 3.52 percent in 2017 versus 5.07 percent as at December 2016.
Also, the NPL Coverage Ratio was 136.98 percent as at December 31, 2017 compared with 100 percent as at December 2016, while the Capital Adequacy Ratio (CAR) stood at 14.32 percent in the period under review.
Commenting on the results, Managing Director/CEO of Wema Bank, Mr Segun Oloketuyi, provided further insights into the performance of the bank during the period.
“Despite the slow start to the year, 2017 recorded significant progress, highlighted by the introduction of the Investor & Exporters (I&E) window and recovery in oil prices,” Mr Oloketuyi noted.
“Our target market is the upwardly mobile youth segment, the young entrepreneurs, the young professionals and the financially excluded, where we continue to leverage incremental innovation and integral capabilities. For us, banking should be simple, reliable and convenient,” he added.
In view of the bank’s commitment to incremental innovation, the lender was recognized as the Best Digital Bank, Best Mobile Banking app, Digital Banking Platform of the year, Best Digital Bank in Africa, Best & Most Innovative Digital Solution and Excellence in Branchless Banking by World Finance, the Asian Banker and Business Day – reputable organisations located in Africa, Europe and Asia.
“We continue to execute our omni channel business model with precision, as we made in-roads to Kaduna, Bauchi, Kano, Mararaba (Nasarawa), Warri, Aba, Sangotedo (Lagos) and Lagos State University (LASU). Furthermore, we recorded increases in the number of strategic partnerships forged and expect this trend to further gain momentum.
“In October, the bank held its Extra-Ordinary General Meeting (EGM) towards its proposed Capital Reorganisation Scheme.
“I am delighted to announce that the exercise has been concluded, with all relevant regulatory approvals in place and duly passed and reflected in the 2017 financial year accounts.
“As earlier highlighted, the conclusion of the exercise would lead to an efficient balance sheet, as ploughed back profit can be capitalised to grow the business while positioning the Bank for dividend payment in the near term.
“I would like to appreciate our esteemed shareholders for their patience and the trust reposed in us. We are now in the final stage of our three-pronged strategy; stabilise the bank (2009 – 2012), reposition the bank (2013-2017) and grow the bank (2017 and beyond).
“We approached the money market in November 2017 to raise N25 billion in two Series under a commercial paper Program; Series 1 N10 billion – 182-day tenor and Series 2: N15 billion- 270-day tenor.
“Given the relative decline in interest rates and possible growth within the economy, the bank will be re-opening the 2nd series of its N50 billion debt issuance program. This should commence from the second quarter of the year,” Mr Oloketuyi said.
According to the Wema Bank MD, the bank’s commitment to excellence positioned it for a top-8 finish at the 2017 KPMG Banking Industry Customer Survey. It, therefore, stressed commitment to improving its capabilities towards the attainment of sustainable competitive advantages, especially a top-5 finish in 2018 and increasing market share.
In his own review of the result, Chief Finance Officer of the financial institution, Mr Tunde Mabawonku, noted that the bank’s 2017 result was reflective of its continued resilience despite realities arising from increased impairment charges during the period.
The bank’s earnings from non-interest income remained strong, growing by 24.44 percent from N9.80 billion in 2016 to N12.19 billion in 2017; surpassing its 2017 guidance of a 19 percent growth rate.
“Risk management remains at the core of our operations, as we leverage on our prudent risk management practices and reported a Non-Performing Loan (NPL) ratio of 3.52 percent (2016; 5.01 percent) while our Capital Adequacy Ratio (CAR), closed at 14.32 percent (2016; 11.07 percent).
“We remain confident, that the Bank’s credit rating will continue to remain affirmed at investment grade level,” Mr Mabawonku noted.
He expressed the bank’s commitment to sound risk management while leveraging its digital platforms, built capabilities in lowering the cost of service and attaining competitive advantages.
“In addition, with our positive retained earnings account, the balance sheet has now been repositioned for efficiency,” Mr Mabawonku concluded.
By Modupe Gbadeyanka
The six edition of the Hackaholics of Wema Bank Plc has produced 20 top finalists shared equally between two streams, Ideathon and Hackathon.
The Hackathon finalists are Rapid DEV, Secure IT, Neurafeed, Trust Lock Babcock, Pulse Track, IlluminiTrust, Trust Lock FUTA, Fix Fraud AI, KASH Flow and VOC AI.
The Ideathon finalists include PLOY, Fertitude, VarsityScape, Mama ALERT, StockMed, Chao, All Arbitrate, FarmSlate, Sane AI and Cycle X.
They emerged after a two-day pre-pitch held on December 16 and 17, 2025, for the grand finale slated for Friday, December 19, 2025.
They grand finale of Hackaholics 6.0 will convene the top players in Africa’s tech and innovation ecosystem, creating an avenue for these finalists to not only put their creativity to the ultimate test but also give their solutions visibility to potential investors for additional funding opportunities beyond the prizes to be won.
The prizes to be won for the Ideathon include N25 million for the winner, N20 million for the first runner-up, N15 million for the second runner-up and N5 million each for two women-led teams.
In the Hackathon category, the first to fourth-place winners will receive N20 million, N15 million, N10 million and N5 million, respectively.
The pre-pitch saw the top 43 contenders battle in a game of innovation and problem solving, presenting compelling pitches for a chance to make it to top 10 in their respective streams.
After a rigorous stretch of pitches and presentations, the top 20 emerged, securing their spot in the grand finale of Hackaholics 6.0.
“Hackaholics started off as a hackathon and morphed into an ideation. For Hackaholics 6.0, the sixth edition, we decided to give both the builders of new solutions and the refiners of existing ones, an opportunity to make meaningful impact.
“For us at Wema Bank, we understand that innovation isn’t just building from scratch. Sometimes, it’s looking at what exists and developing new ways to optimise that and create more efficiency. This is the idea behind our two-stream Ideathon-Hackathon structure.
“Every year, Hackaholics shows us just how eager and motivated Nigerian youth are when it comes to exploring creativity and innovation, and we are honoured to be the institution that provides them with the platform and resources to put this drive to good use.
“We toured seven cities, indulged 1,460 participants and discovered hundreds of remarkable ideas; some of which needed some refining and some of which deserved to move to the next stage.
“For those who needed to go back to the drawing board, we provided useful guidance and for the top contenders, we were able to shortlist to the top 43, who proceeded to the pre-pitch. To every participant, Wema Bank is proud of you. This is just the beginning,” the chief executive of Wema Bank, Mr Moruf Oseni, said.
By Adedapo Adesanya
The Nigeria Customs Service (NCS) says it will enforce penalties against designated banks that delay the remittance of customs revenue, in a move aimed at strengthening transparency and safeguarding government earnings.
This was disclosed in a statement on the NCS official account on X, formerly known as Twitter and signed by its spokesman, Mr Abdullahi Maiwada, who said the delays undermine the efficiency, transparency, and integrity of government revenue administration.
“The Nigeria Customs Service has noted instances of delayed remittance of customs revenue by some designated banks following reconciliation of collections processed through the B’odogwu platform,” the statement read.
“Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.
“In line with the provisions of the Service Level Agreement executed between the Nigeria Customs Service and designated banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.”
Mr Maiwada disclosed that any bank that fails to remit collected Customs revenue within the prescribed timeline will be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the period of the delay.
He added that affected banks would be formally notified of the delayed amounts, the applicable penalty, and the deadline for settlement.
“Accordingly, any designated bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay.
“Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement,” the statement read.
By Aduragbemi Omiyale
The deputy managing director of First Bank of Nigeria (FBN) Limited, Mr Ini Ebong, has offloaded some shares of FBN Holdings Plc, the parent firm of the banking institution.
A regulatory notice from the Nigerian Exchange (NGX) Limited confirmed the development on Thursday.
It was disclosed that the transaction occurred on Friday, December 12, 2025, on the floor of the stock exchange.
The sale involved about 11.8 million shares, precisely 11,783,333 units traded at N31.14 per share, amounting to about N366.9 million.
Mr Ebong, who studied Architecture from University of Ife and obtained Bachelor and Master of Science degrees, became the DMD of First Bank in June 2024. Prior to this appointment, he was Executive Director, Treasury and International Banking since January 2022.
He was previously the Group Executive, Treasury and International Banking, a position he held since 2016 after serving as the bank’s Treasurer from 2011 to 2016.
Before joining First Bank, he was the Head of African Fixed Income and Local Markets Trading, Renaissance Securities Nigeria Limited, the Nigerian registered subsidiary of Renaissance Capital. He also worked with Citigroup for 14 years as Country Treasurer and Sales and Trading Business Head.
He has a passion for market development and has worked actively to drive change and internationalisation of the Nigerian financial markets: foreign exchange, fixed income and securities.
He has worked closely with regulatory bodies such as the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) in assisting with the development of fresh monetary and foreign exchange policies, to broaden and deepen markets and open them up to international practices.
At various times he has facilitated and delivered courses and seminars on a wide variety of subjects covering Money Markets, Securities and Foreign exchange trading and market risk management subjects to regulators, corporate customers, banks and market participants.
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