SHAREHOLDERS PANIC AS WEMA BANK SUFFERS CONTINUED DROP IN PROFIT

SHAREHOLDERS PANIC AS WEMA BANK SUFFERS CONTINUED DROP IN PROFIT
-Loses More Depositors

Wema Bank Plc at the moment is battling to stem the tide of slide in profit as more depositors are said to be leaving the Bank in droves.

The Bank said in it’s half year performance indices that its net interest income have gone down to N9.06billion from N9.71billion while profit before tax have also gone down to N1.17billion from N1.70billion. The Bank also said in its unaudited financial results for the first half of 2015, that its loans and advances were N134.57billion, down from N149.29billion  while deposits from customers stood at N234.10billion, down from N258.96billion.

The Managing Director and Chief Executive Officer, Wema Bank, Mr. Segun Oloketuyi, was quoted in the statement as he blamed the downward trend on these factors, “Given the tough operating environment in the first half of 2015 attributable to economic headwinds, regulatory restrictions and political uncertainty, the bank has been able to sustain its financial performance, albeit, on a lower level compared to the same period in 2014.

He noted that the first quarter of the year was characterised by election-related activities and political maneuvering with limited emphasis on economic matters, while the second quarter was largely characterised by the continued pressure on the currency, the tight monetary policy conditions and the low level supply of petroleum products.

Oloketuyi said, “All these issues affected consumer discretionary spending and indeed the growth in our retail volumes,” adding that due to the lack of economic policy clarity so far in 2015, investment decisions had been tentative.