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1 T ABLE OF C ONTENTS Sections 1. About WEMA BANK Plc slide 4 2. - PowerPoint PPT Presentation

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1 T ABLE OF C ONTENTS Sections 1. About WEMA BANK Plc slide 4 2. Financial Highlights slide 9 3. The Offer slide 14 4. Key Investment Considerations slide 17 5. Outlook and Strategy slide 19 6. Key Contacts slide 25 2 Section 1

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  2. T ABLE OF C ONTENTS Sections 1. About WEMA BANK Plc slide 4 2. Financial Highlights slide 9 3. The Offer slide 14 4. Key Investment Considerations slide 17 5. Outlook and Strategy slide 19 6. Key Contacts slide 25 2

  3. Section 1 About WEMA Bank Plc

  4. Introduction to WEMA Bank Plc Company Overview Continued improvements recorded in the retail space ❖ Widely reputed as the longest surviving indigenous bank in Nigeria, WEMA Bank has over the years, diligently N30.37bn offered a fully-fledged range of value-adding banking and financial advisory services to the Nigerian public 25.19% CREDIT ❖ The Bank offers a range of retail and SME banking, RATINGS corporate banking, treasury, trade services and financial “F3“ by Fitch “A3” by GCR advisory to its ever-expanding clients. 1.7mn ❖ In 2009, the Bank underwent a strategic repositioning CUSTOMER BASE exercise which culminated in a decision to operate as a IMPROVED ALTERNATE commercial Bank with regional authorization in South- SERVICE CHANNELS RATING South Nigeria, South-West Nigeria, Lagos and Abuja in ISMS 2011. ISO BRANCH certified GROWTH ❖ In 2015, the bank was granted a national banking license NATIONAL by the Central Bank of Nigeria. LICENSE ❖ The Bank operates a network of over 140 branches and service stations across Nigeria, backed by a robust ICT platform 4

  5. Board Of Directors 5

  6. Experienced Management Team Experienced banker with over 28 years’ Consumate banker with several years of − − experience inclusive of 4 years in management banking and managerial experience. Godwin Ehigiamusoe- MD/CEO consulting). Until his appointment, he was an Executive − He has worked in various capacities in − Director, Skye Bank Plc with the Information Technology, Financial Control & responsibility for business development Strategic Planning, Treasury, Corporate Banking, across Lagos and South-West directorates Risk Management and Performance of the bank. Management He is an alumni of Lagos business school He is an alumni of Lagos business school and a − − Segun Oloketuyi Ademola Adebise fellow of the Institute of Chartered Accountants and a fellow of the Institute of Chartered of Nigeria (ICAN) (MD/CEO) Accountants of Nigeria (ICAN) (DMD) Experienced banker with over 20 years of cognate Executive Director of the Retail & North − − experience Directorate on the board of Wema Bank Plc. with responsibility for the Retail & SME He is responsible for co-ordinating Business − business, E-business & Payments Development Activities in the South-West Region of Wema Bank. Prior to his board appointment, Moruf was − Prior to his board appointment, Wole was group the CEO of MG Ineso Limited, a principal − head of Stanbic IBTC’s business development investment and financial advisory firm with interests in various sectors of the economy. He is an alumni of Obafemi Awolowo university − Wole Akinleye Moruf Oseni and a fellow of the institute of Chartered He is an alumni of Insead (France) and − Accountants of Nigeria (ICAN) (Executive Director ) (Executive Director ) London business school Astute finance professional and banker of − Legal professional who bears the oversight repute with over 32years working experience in − responsibility of proffering opinions on all legal banking, professional accounting and auditing related issues including practice Prior to appointment, he was the Head; Legal Prior to appointment, Folake was Chief Financial − − Services Department of Skye Bank Plc, where he Officer and later, Chief Compliance Officer of burnished his leadership skills, supervising the legal Sterling Bank where she was instrumental to the support provided for over 207 branches and 7 successful merger of 5 different banks to form Regional Legal Offices.. Sterling Bank plc. He holds an LLB Degree with honours from the Folake Sanu Oluwole Ajimisinmi − She is an alumni of London Business school and − University of Jos, Plateau State, Nigeria and a BL a fellow of the Institute of Chartered (Executive Director ) (Company Secretary) Degree from the Nigerian Law School. Accountants of Nigeria (ICAN 6

  7. Recent History and Key Milestones 7

  8. Section 2 Financial Highlights

  9. Financial Highlights Revenue Generation Earnings, Profit, Capital H1’2017 H1’2016 2016FY H1’2017 H1’2016 2016FY Deposits N251.74bn N253.84bn N283.33bn Gross earnings N30.37bn 24.26bn N54.25bn (customer) Loans (net) N205.71bn N171.99bn N227.01bn PBT N1.43bn 1.30bn N3.28bn Interest income N25.37bn N20.16bn N44.45bn PAT N1.22bn 1.10bn N2.59bn Non-interest CAR 12.74% 13.36% 11.07% N5.01bn N4.11bn N9.80bn income Operating Efficiency Margin & Asset Quality H1’2017 H1’2016 2016FY H1’2017 H1’2016 2016FY Net interest margin 5.33% 6.71% 6.56% ROAE (annualised) 4.96% 4.73% 5.48% Cost-to-income 89.30% 89.77% 88.32% ROAA (annualised) 0.61% 0.56% 0.63% NPL (%) 4.91% 2.83% 5.07% Yield on Assets 15.95% 13.92% 15.65% Loan to deposits 81.72% 61.90% 80.12% Operating N11.97bn N11.39bn N24.79bn Coverage ratio (%) 101.07% 101% 100.00% expenses 9

  10. Stable and Consistent Performance Deposit (customer) Total Asset ) Loans & advances (net) Gross earnings 11.53% ; 5yr CAGR (Assets), 10.20%, 4yr CAGR (Deposits); 11.88%; 4yr CAGR (Gross earnings)). CAGR indicative of the period 2012-2016. 10

  11. Efficiency External headwinds impacting on cost management Cost-to-income Operating Expenses Comments Operating expenses increased by 5.02% from N11.39 billion from N11.97 billion • as at H1’2017. Drivers for the increase were; ➢ High energy and power costs. ➢ Incremental costs from technology upgrades and licences. Cost to income declined marginally from 89.77% to 89.30%. We expect further • streamlining of our processes, the continued on-boarding of customers on ALAT and migration of our customers to our alternative platforms should lead to reductions in our cost to serve. 11

  12. Asset Quality & Earnings Trend Asset Quality Earnings Trend Deposit Mix H1'2017 Deposit Mix FY'2017 Efficient Risk Management culture evidenced by continued low NPL ratio Savings Savings 250 90.00% 17% 22% N'bn Term 80.00% Term Current 200 47% 56% Current 70.00% 27% 31% 60.00% 150 50.00% Deposit Mix H1'2017 Deposit Mix FY'2017 100 40.00% Treasury Treasury 30.00% Corporate 3% 6% 50 Corporate 12% 10% 20.00% Retail Retail 0 10.00% 16% 20% Commerci 2015FY 2016FY H1'2017 Commercial al 65% 68% Gross loans Net loans Loan to Deposit ratio Capital Adequacy Ratio (CAR) as computed under Basel II requirements ▪ Gross loans declined from N229. 84 billion (2016FY) to N208.84 billion (H1 ’ 2017) ▪ increased during the review period from 11.06% (2016FY) to 12.71% as at due to paydowns and refinancing. H1 ’ 2017. This was due to the reduction in quantum of risk weighted assets. NPL ratio closed at 4.91%, a decline from 5.07% as reported in 2016FY. Recoveries ▪ largely accounted for the reduction in NPL ratio during the period with the rest The second tranche of tier II capital raise will open in Q3 ’ 17. ▪ accounts recording repayments by customers. Shareholders’ fund has grown at a 4 year CAGR of 4.04% from N41.40 billion as Coverage ratio (incl. risk reserve) remains robust at 101.07% (100%; 2016FY) , ▪ ▪ ensuring level of provision remains adequate. at 2013FY to N48.50 billion in 2016FY. 12

  13. Section 3 The Offer

  14. Indicative Term Sheet: Series I TERMS DESCRIPTION Issuer: Wema Bank Plc Joint-Lead Arrangers/ Dealers: Greenwich Trust Limited United Capital Plc Placing Agents/ Dealers: Cowry Asset Management Limited Investment One Financial Services Limited Qualinvest Capital Limited Auditors: Akintola Williams Deloitte (Chartered Accountant) Registrars/Custodian: Central Securities Clearing System PLC Solicitors: Aluko & Oyebode Face Value: N10,000,000,000 Discounted Value: N [ ● ] Nominal Amount Per Note: N1,000 Tenor: 182 days Currency of Issue: Nigerian Naira The estimated gross issue of N[ ● ] Billion will be utilized to support WEMA Bank’s short term financing requirements Use of Proceeds: and will be deployed to high-yield earning assets. Redemption: As stated in the Applicable Pricing Supplement, subject to the CBN Guidelines Maturity Date: [ ● ] Final Redemption Amount: N [ ● ] Minimum Subscription: N5,000,000 and multiples of N1,000 thereafter Offer Opens: September [.] 2017 Offer Closes: September [.] 2017 14

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