The report classifies Wema Bank as number three in SME Banking, this is three places higher than the bank’s 2020 classification.

Wema Bank has been consistent in its drive to support the growth and development of SMEs in the country. The bank has initiated several financial and advisory support programs to boost SMEs, some of which include: Single-digit loans for women, uncollateralized loans for SMEs, quarterly SME webinars, access-to-market initiatives, and a plethora of other advisory and support services

In the last year, Wema Bank pioneered the establishment of the first bank-led SME business school in the country, aimed at boosting critical knowledge and capabilities for SMEs at no cost to beneficiaries. The business school which enjoys the support of Frankfurt School of Finance and Management, Germany, has reputable consultants and organizations such as Ernst & Young, MTN, Microsoft, Google, Agusto, etc. facilitate at the program.

The KPMG survey ranked banks using the six pillars of customer experience excellence, including integrity (being trustworthy and engendering trust), resolution (turning a poor experience into a great one), and expectations (managing, meeting, and exceeding customer’s expectations. The others were empathy (understanding the customer’s circumstances to drive deep rapport), personalization (using individualized attention to drive emotional connection), and time and effort (minimizing customer effort and creating frictionless processes).

In a statement on the survey report, KPMG said, “This year’s leaders show digital banking excellence and have adapted well to higher transaction volumes and complaints.”

Commenting on the bank’s KPMG ranking, the Managing Director/CEO, Wema Bank, Ademola Adebise, said it was an affirmation of the bank’s commitment to the growth and well-being of SMEs as critical contributors to the economy.

He said, “At Wema Bank, we recognize SMEs as an important part of the economy, and we are always on the lookout for their well-being. We are happy that the SMEs acknowledge our contributions, hence our ranking.”

Speaking further, he stated that recognitions such as this are an invitation to do more. He therefore gave the bank’s unwavering commitment to intensifying its support to SMEs in year 2022.

Recall that in 2020, Wema Bank received the SME Bank of the year award from Business Day, and in 2021, the bank has again received this recognition from KPMG as a customer experience leader in the banking industry. This is definitely a bank to look out for in 2022.

The KPMG Nigeria Banking Industry Customer Experience Survey has been held annually for the last 15 years with the 2021 edition themed “Changing Customer, Changing Priorities”.

The post Wema Bank Ranked among Customer Experience Leaders by KPMG appeared first on Business News in Nigeria.

Wema Bank proved its mettle in the key metrics of total assets growth, customer deposit growth, profit after tax growth, loan book growth, return on average equity and cost to income ratio.

According to a special report on the financial performance of quoted Nigerian banks by Nairametrics, some banks have dominated the efficiency, deposit, and profitability metrics, especially newly re-engineered banks like Wema Bank and Unity Bank, among others. They are now two of the top five leading banks in the country.

According to data from Nairalytics – the research arm of Nairametrics, the twelve banks reviewed posted an aggregate profit after tax of N275.27 billion in Q1 2022, representing a 14.7% increase compared to N239.95 billion posted in the corresponding period of 2021.

The banks were able to record an improved bottom line despite the CBN monetary policy leaning towards a dovish direction, that is, keeping interest rates low. However, the apex bank in its latest MPC meeting has raised the benchmark interest rate from 11.5% to 13%, and banks could be seeing a rise in their interest earnings going forward.

For this analysis, the Q1 2022 results of the following banks were tracked: Access Holdings, FBN Holdings, FCMB, Fidelity Bank, Wema Bank GT Holding, Stanbic IBTC, Sterling Bank, Union Bank, UBA, Unity Bank, and Zenith Bank. Ecobank was not considered in the analysis as the bank operates efficiently in other markets besides Nigeria.

The key metrics considered in these analyses are total asset growth, loan book growth, profit growth, cost–to–income ratio, and return on average equity.

Leading Banks by Profits After Tax (PAT) growth

The twelve banks under our radar posted an aggregate profit after tax of N275.27 billion in Q1 2022, which is 14.7% higher than the N239.95 billion recorded in the previous year (Q1 2021).

First position – Wema Bank (+119%)

Second position – First Bank (+108%)

Third position – Sterling Bank (+47.9%)

Fourth position – FCMB (+44.6%)

Fifth Position – FBNH: (+33.9%)

Upshots: In terms of net profit, Zenith Bank recorded the highest profit after tax of N58.19 billion. In terms of growth, Wema Bank topped the list with a 119% growth in its bottom line while First Bank recorded a 107.7% growth.

Leading Banks by cost-to-income ratio performance

The cost-to-income ratio is a key financial metric, which shows a company’s costs as a proportion of its income. It helps to give investors a clear view of how efficiently a bank is being run. Specifically, it shows how much input the bank requires to generate N1 of output.

Notably, the lower this ratio, the more profitable, productive, and competitive the bank will be. Here are the banks with the lowest cost-to-income ratio:

First position – First Bank (-12.48%)

Second position – FCMB (-6.83%)

Third position – Wema Bank (-5.5%)

Fourth position – Stanbic IBTC (-5.4%)

Fifth Position – Sterling Bank (-2.1%)

Upshots: First Bank recorded the highest decline in its cost-to-income ratio in Q1 2022, dropping from 79.5% recorded in Q1 2021 to 67.03% in the review period. FCMB also saw a decline in its numbers to 72.69%. However, GT Bank currently has the lowest cost-to-income ratio of 42.42% in Q1 2022.

Leading Banks by Total Assets growth

The analysis of the combined assets of the 13 listed banks (Ecobank excluded) reveals that the total assets increased by 6.7% from N57.67 trillion recorded as of December 2021 to N61.54 trillion in the review period. The total asset of the listed banks amounts to over 85% of Nigeria’s annual real GDP (2021 estimate).

The increase in the total assets of the banks indicates a stronger financial position. All the banks under study recorded an improvement in their total asset base. Below are the leading banks by total assets growth between March 2022 and December 2021.

First position – Fidelity Bank (+22.9%)

Second position – Zenith Bank (+18.9%)

Third position – Stanbic IBTC (+13%)

Fourth position – Unity Bank (+9.7%)

Fifth Position – Wema Bank (+7.7%)

Upshots: Fidelity Bank tops the list of best performers in terms of asset growth in the first quarter of 2022 after its total assets increased by 22.9% from N2.89 trillion recorded as of December 2021 to N3.56 trillion by the end of March 2022.

Leading Banks by Customer Deposits growth

Customer deposits remain one of the most competitive items in the banking sector since it is from deposits that loans are issued out and other investments are made.

The total customer deposits stood at N40.34 trillion, as of the first quarter of the year, representing an 8.7% increase compared to N37.1 trillion recorded as of the previous quarter. The bank leading the charge in terms of value is Access Bank, which accounts for 18.5% of the total share, however, Zenith Bank tops in terms of growth.

First position – Zenith Bank (+27.8%)

Second position – Fidelity Bank (+18%)

Third position – Unity Bank (+17.4%)

Fourth position – Wema Bank (+8.8%)

Fifth Position – Access Bank (+7.8%)

Upshots: Zenith Bank recorded the highest growth in customer deposits, followed by Fidelity and Unity Bank with 18% and 17.4% increases respectively. Only Union Bank recorded a customer deposit decline in the first quarter of 2022.

Leading Banks by loan book growth

Bank loan is an important metric used in assessing the performance of banks. Notably, loans allow for growth in the overall money supply in an economy and open up competition by lending to new businesses.

The interest and fees from the loans form a major part of where banks generate their earnings. According to the analysis, loans to customers increased by 8.3% to N21.71 trillion in Q1 2022 from N20.05 trillion recorded as of December 2021.

First position – Fidelity Bank (+28%)

Second position – Zenith Bank (+25%)

Third position – Unit Bank (+11.9%)

Fourth position – UBA (+7.1%)

Fifth Position – Stanbic IBTC (+6.4%)

Upshots: Fidelity Bank led the list of banks with the highest loan book growth in the first quarter of 2022. Specifically, its customer loan increased by 28% to N1.83 trillion from N1.43 trillion recorded as of December 2021.

Leading Banks by Return on Equity (ROAE)

The return on equity is an important metric that shows the percentage of profit made on every N1 of the shareholders’ fund. It is used to measure the performance and efficiency of the banks.

This metric will show how well banks have maximized any increase in shareholders’ wealth.

First position – Access Bank (21.39%)

Second position – UBA (20.4%)

Third position – GT Bank (19.3%)

Fourth position – Zenith Bank (19.2%)

Fifth Position – Wema Bank (15.96%)

Upshots: The aggregate returns on equity for the twelve banks stood at 13.72% as of March 2022. Access Bank led the list with a return on average equity of 21.39% (annualized) in March 2022, closely followed by UBA (20.4%) and GT Bank (19.3%).

Final Scorecard

Taking the average of the performance of the banks across the six metrics under our radar, we see Zenith Bank on top of the rank, followed by Wema Bank, Stanbic IBTC, First Bank, and Fidelity Bank based on their Q1 2022 numbers

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In a statement seen by Unmaskng.com, it was disclosed therein that Union Global Partners Limited, Atlas Mara Limited, and other existing shareholders agreed to divest 89.39 percent shareholding in Union Bank to‬ TITAN Trust Bank.

“Completion of the transaction is subject to obtaining applicable regulatory approvals and the fulfillment of certain conditions precedent,” Union Bank told Nigerian Exchange Limited (NGX) in a note on Thursday.

The transaction will soften the ground for Titan Trust to hold the largest equity stake by a single investor in any of the country’s publicly quoted banks.

That implies only a limited portion of Union Bank’s shares will be readily available in the open market when the deal is delivered except a corporate resolution to sell down parts of the newly bought interest happens.

What you should know about TITAN Trust Bank…

Titan Trust Bank came into being on December 12, 2018, and commenced operation as a full commercial national bank following its acquisition of a national banking license from the Central Bank of Nigeria in 2019.

While the bank boasts high-class bankers as members of its management team, it also possesses an enhanced branch network for the best customer experience and service delivery around Nigeria.

According to the bank’s website, the establishment of the bank was borne out of the desire to meet the unfulfilled demands of corporates, SMEs and the retail mass market.

The post What You Should Know About TITAN Trust Bank, Union Bank’s New Owner appeared first on Business News in Nigeria.

It all started when singer Davido appealed to his fans, and friends to donate N1 million each to him in celebration of his fast-approaching birthday.

Shortly after making the post across his verified social media pages, the music star’s friends and fans started to donate N1 million individually to his Wema Bank account.

The money donated was surprisingly much, such that over N90 million was donated to the Wema Bank account in less than four hours.

The donation caused the bank to trend across all social media platforms, including Twitter.

Ecstatic about the free publicity, the financial institution took to Twitter for the first time in over six months that the federal government disclosed the controversial ban.

However, when Unmaskng.com put a call through to Director of Corporate Communications, Osita Nwanisobi, for reaction and possible sanctions on the bank for floating the Twitter ban, he didn’t answer his phone, neither did he respond to the message from our correspondent.

Wema Bank, others comply to Twitter ban

Since when Lai Mohammed, the minister of information and culture, disclosed that the President Muhammadu Buhari-led government had effected the Twitter ban, many people in the country have been bypassing it with the use of Virtual Private Networks (VPNs).

According to Mohammed, following the ban, telecommunication companies in the country were directed to halt the accessibility of Twitter on their networks.

The Twitter ban, however, stopped many corporate organisations like Wema Bank, from using the micro-blogging site.

However, for the first time since Saturday, June 4, that the federal government announced that Twitter had been banned, the Deposit Money Bank (DMB) must have bypassed it like other Nigerians, with the use of VPNs, as it tweeted in reaction to Davido’s N1 million donation challenge.

Without minding what could happen for tweeting after the ban, the financial institution tweeted: “We heard your GOAT called our name. Well…”

The post CBN Keeps Mute As Wema Bank Flouts Twitter Ban Because Of Davido appeared first on Business News in Nigeria.

Ogundiran said out of the N40 million her father borrowed from Wema Bank, he was able to pay N5 million, blaming the non-fulfillment of the debt obligation on the non-payment of a N32 million owed by Ekiti State government.

Information reaching Unmask NG has it that the debt was bought by the Asset Management Corporation of Nigeria (AMCON), a body established to reduce non-performing loans in different sectors of the Nigerian economy.

After buying the debt from Wema Bank, AMCON reportedly deceived a court, seizing her late father’s real estate property and subsequently demolished it.

The property was situated in Durban, Wuse 2, Abuja.

Ogundiran stated she filed a lawsuit against the government agency to stop it from forcefully taking over their property which has become a source of living for her family.

AMCON, however, ignored a court summon in Ibadan, Oyo State, but obtained an Exparte in a Lagos court, to effect the eviction and demolish the property worth N400 million to N600 million and sold – this is despite a pending court order.

According to Ogundiran, prior to the demolition, her family had planned to repay the loan through the N13 million reserved in family account and N32 million the Ekiti state government owed her father for the road he did for the government.

A statement from Ogundiran, read: “AmconNg refused to appear in court in ibadan where we instituted a case against them and currently having the hearin on d case. AmconNg refused to talk to us or give room for us to negotiate with them. AmconNg refused to respect d court motion we filed to set-aside the Exparte Order they collected without our notice (back door).

“AmconNg lied under oat: Amcon lawyer Clifford abandoned the ongoing case in Ibadan then went to Lagos to deceive the judge to collect an Exparte Order.

“He told the judge that there is no ongoing case regarding the Matter in court in order to get an Exparte order. We got to know through our lawyer after obtaining the proceeds. AMCON now use the exparte order to evict us without notice, demolish our house and sell it to an unknown person.

“My father was a contractor. He did a road for Ekiti. He currently has an outstanding payment of N32 million that the @ekitistategov owe him. We also have N14 million in  the family account to add to the outstanding.”

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In a statement made to the public by the bank, the Managing Director. Mr. Ademola Adebise said, “I am delighted to announce our performance for the year ended 31st December 2021. The Bank’s FY 2021 results shows robust growth in all key financial metrics despite the challenging macro-economic environment.

“Our year end numbers highlight the strong growth trajectory of the financial institution. We comfortably crossed the ₦1trillion mark in total assets, with a share of approximately 3% of industry deposits.”

 Wema Bank recorded an increase of 108.3% in profit before tax (PBT) to close the year at N12.38 billion. This was driven by a Year-on-Year growth of 15.35% in gross earnings to ₦92.14billion in FY 2021 from ₦79.88billion in FY 2020.

The Chief Finance Officer of the Bank, Mr. Tunde Mabawonku noted that “a key measure of success for us is a consistent growth in our balance sheet and customer base – and we are glad that we are reporting healthy growth in all these areas.” 

Deposit Liabilities grew by 15.23% to ₦927.47billion in FY 2021 from ₦804.87billion in FY 2020 while Total Asset increased by 20.23% to ₦1.164.52billion in FY 2021 from ₦968.58billion in FY 2020.

Mr Mabawonku also added that, ” Looking forward, we expect that the strong growth will be sustained despite the tough business climate as we execute our customer experience improvement initiatives built around a digital first banking strategy and become first in class in that sphere. The bank will also continue to focus on our digital business, which is a key boost for customer acquisition, consumer lending and transaction volumes while not neglecting our corporate and commercial play.

” On our commercial business, we will continue our aggressive strategy to improve our lending business alongside trade and other revenue lines. We have also unveiled our new Mission and Vision statements which underpins our corporate strategy. We want to be the dominant digital platform in Africa delivering seamless financial service’.

Gross earnings increased by 15.35% (Y-o-Y) to ₦92.14billion in FY 2021 from ₦79.88billion in FY 2020.Profit Before Tax (PBT) of ₦12.3billion in FY’21, an increase of 108.26% YoY from N5.95billion in FY’20 while. Profit After Tax (PAT) of ₦8.93billion in FY’21, representing an increase of 94.53% YoY from N4.59billion in FY’2020.

Net-Interest Income grew to ₦39.87billion in FY 2021from ₦30.86billion in FY 2020; growth of 29.22%.Non-Interest Income also increased from ₦16.83billion in FY 2021 to ₦18.83billion; a growth of 11.91%.

 Deposit Liabilities up by 15.23% to ₦927.47billion in FY 2021 from ₦804.87billion in FY 2020. Loans and Advances to Customers rose by 16.33% to ₦418.86billion in FY 2021 from ₦360.08billion in FY 2020.

Similarly, Total Asset increased by 20.23% to ₦1.164.52billion in FY 2021 from ₦968.58billion in FY 2020.Key RatiosReturn on average equity of 17.26% in FY 2021 (FY 2020).

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