Wema Bank profit hits N26.3bn

Wema Bank Plc has recorded N26.323bn in gross earnings for the nine-month period ended September 30, 2013.

The figure represents a 22.10 per cent increase on the N21.558bn it posted in the corresponding period of 2012.

This was contained in the extract of the bank's unaudited IFRS results for the nine-month period, which was sent to the Nigerian Stock Exchange (NSE) and the bank's shareholders.

The results showed that the net income stood at N8.194bn, indicating a rise of 6.45 per cent on the N7.697bn it made in the nine-month period ended September 30, 2012.

The bank posted a profit before tax of N563.8m for the period under review, compared to a loss before tax of N1.785bn for the corresponding period of 2012.

Similarly, the bank realised a profit after tax of N479.2m in the first nine months of 2013, compared to a loss after tax of N1.874bn for the same period in 2012.

The results also showed that Wema Bank's cash and balances with the CBN rose by N62.2bn in the period under review, from N19.6bn on December 31, 2012 to N87.8bn on September 30, 2013.

The bank had at its Annual General Meeting in August this year, secured the approval of its shareholders to raise fresh capital to the tune of N40bn.

The management of the bank also got an approval to raise the additional fund, which it said was needed to strengthen its balance sheet and expand its operations, from the capital market and from local, foreign and other investors through private placement, public or rights offer, or issuance of ordinary shares for such equity.

The Managing Director, Wema Bank, Mr. Segun Oloketuyi, had told the shareholders that the recapitalisation was targeted at improving and expanding the bank's operations.

He gave them the assurance that the bank would continue to explore new frontiers in service delivery and settlement platforms.

He said, 'We are particularly confident that the opportunities for growth and expansion within the industry remain strong even as we continue to target the unbanked and ever increasing retail sector of the economy.'

The bank's shares appreciated by 2.46 per cent or three kobo on Monday to close at N1.25 per share.