HALF YEAR 2019 PRESENTATION TO INVESTORS & ANALYSTS www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 1
Content • The Operating Environment • Overview of the Bank • H1 2019 Performance Review • Outlook and Strategy • Appendix www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 2
OPERATING ENVIRONMENT www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 3
Operating Environment Global & domestic economies faced significant strain in the first half of the year... Global Environment Domestic Environment Oil Price, Foreign Reserve and Borrowings • T rade tensions roiled the global • 2019 started with a slight decline in economy, spilling over to growth as the Q1 GDP closed at • Oil price started the year with emerging economies as FDI 2.01% from 2.38% recorded in the an upward trend finishing the and FPI fled. The rout also preceding quarter (Q4 2018). It was first quarter with oil prices at impacted commodities worthy to note that a growth rate of $68.39. This trend further producing nations as demand 6% and above will be required to continued with the start of the slowed. push growth. second quarter recording its highest value in price at $74.57 • A chaotic Brexit affected the • Elections and post-election petitions in April, however there was a outlook for the EU as the Pound affected policy making. However with steady decline as the half year lost luster, and firms moved out majority of the petitions now point approached closing the of London and the United concluded, formation and subsequent period under review at $66.55 Kingdom approvals of cabinet will improve pace of decision making. • Nigeria's FX reserve was kept • China's growth slowed as the above the $40billion range effects of US trade tariffs set in. • Inflation started the year in a during the period under review, continued downward trend from last due to improved capital inflows. year closing the first quarter at 11.25%. Q2 however witnessed a tick in inflation and a new upward trend was observed moving from 11.30% to 11.40% in April and May respectively. This however slowed to 11.22% in June Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 4
Policy Highlights • First MPC meeting for the year, rates retained The policy environment remained largely their status quo from preceding meetings. unchanged- 5 year plan of CBN to commence • PMI for January stood at 60.1 JAN • Mr. Godwin Emefiele reappointed as • CBN releases the updated list of IMTOs CBN Governor. • Anti-Money Laundering/Combating the Financing of • MPC decision leaves rates unchanged T errorism (AML/CFT) Policy and Procedure Manual • Establishes the creative industry released by the CBN Financing scheme. JUN FEB • Inflation continued its downward trend • CBN releases its 5 year policy thrust. ending the month at 11.25%. • DMB are directed by the CBN to • MPC reduces MPR by 50bp (0.5%) to implement new cheque standard by 13.50% alongside all other parameters September 1, 2019 MAR MAY • CBN releases Bank Note Fitness Guide. • CBN releases the framework for the Shared Agent Network Facility (SANEF) Comment APR Policy highlight reflecting some of the Central Bank’s activities during the year Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 5
OVERVIEW OF THE BANK www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 6
Overview of the Bank Most Innovative Earnings Total Assets Shareholders Listings Bank, Africa By World Finance Ownership N40.83bn 27.47% Over 350,000 N632bn Shareholders 2067 Agency Professional Staff 2.25m 359 5,682 155 Branches Banking Partners 1,173 Accounts ATMs POS Operations & Contact Channels 44% 56% Bbb- (Stable) Bbb- Stable Governance Board Members 11 Non- Executives 7 Bbb- Stable Executives: 4 Sustainability Partnerships www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 7
FULL DIGITAL BANK FULL DIGITAL BANK We Have Recorded Success With ALAT Accounts 380,000+ Opened Average of ~ N1,000 Average of ~N101k Average of N16k in Transactions 6,702,465 in 302,322 active in 22,309 active 67,720 active ALAT Executed Worth N175bn ALATLiteaccounts goals accounts 122,894 Savings Goals Created 18,335 Goal Based Loans $485,169.41+ 96mn Transaction value 19 Awards 2,063 Virtual Active Cards Worth of loans 142,343 19,259 Transactions done Number of Cards and counting disbursed Issued Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 8
DEVELOPING NEW CAPABILITIES We have offered a robust platform for SMEs; Gaming & Entertainment 2 1 3 ALAT for Business OUTLET by ALAT Partnerships Comment All of this was underpinned by the refresh of our banking software. Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 9
Non-Financial Highlights Taking sustainability a step further… Empowerment Digital Solutions - Hackaholics After the launch of ALAT, we had Hackaholics which is a hackathon event targeted at We launched the female banking proposition – SARA by Wema, targeted at women who designing solutions to meet the needs of the society. The winner of the first edition was want better. The Bank also partnered with the promoters of SHECAN initiative to Team Easy for developing Easy change. empower over 5000 women. Environmental and Social Risk In furtherance of our stance in embedding sustainability in all our activities, we have enhanced and automated our E&S platform Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 10
H1 2019 Performance Review www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 11
2019 Half Year Financial Highlights Improved performance YoY Gross Earnings Total Deposit N40.83bn Grew by 27.47% Y oY to N40.83billion from Increased by 20.80% YTD to 20.80% N32.03billion in H1 2018 due to a moderate N446.09bn from N369.20bn in increase of 29.54% and 19.58% in Interest 2018FY, with a deposit mix of 27.47% YoY Incomeand Non-Interest Incomerespectively. CASA 50% & Term Deposit 50%. 11.41% 43.64% YoY to N2.61billion from Total Loans Closed at N280.96bn an increase of N1.82 billion in H1 and 11.41% when compared to 2018FY 2018. Advances Profit before Tax (PBT) 29.40% Increased from N13.57bn in Total Assets Increased by 29.40% to N632.53bn H1 2018 to N16.40bn in H1 20.93% Operating (N488.80 in 2018 FY) 2019, driven by statutory Expenses and employeecost. www.wemabank.com Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 12
Performance Highlights H1’2019 H1’2018 2018FY Earnings, Profit, Capital. Gross earnings N40.83bn N32.03bn N71.53bn PBT N2.61bn N1.81bn N4.80bn PAT N2.25bn N1.57bn N3.33bn CAR 14.59% 13.27% 18.01% EPS 11.6K 8.20k 8.6k Deposits N446.09bn N354.85bn N369.20bn Revenue Generation Loans (Net) N280.96bn N223.43bn N252.19bn Interest income N32.89bn N25.39bn N57.63bn Non-interest income N7.94bn N6.64bn N13.89bn 86.03% 88.41% 87.16% Cost-to-income Operating Efficiency 16.73% 18.24% 17.75% Yield on Asset Operating expenses N16.40bn N13.57bn N32.58bn Net interest margin 6.69% 7.24% 7.08% Margin & Asset ROAE (annualised) 10.57% 7.39% 9.43% Quality ROAA (annualised) 0.99% 0.81% 1.09% NPL (%) 3.55% 3.31% 4.98% Loan to deposits 62.98% 62.96% 68.31% Coverage ratio (%) 94.01% 91.31% 120.46% Liquidity ratio 34.81% 32.05% 32.05% Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 13
Earnings Trend Improved performance quarter on quarter Income Mix (H1’19) Income Mix (H1’18) Gross Earnings ( N’bn ) 40.83 32.06 30.37 Non Interest Non Interest Income 21% 24.26 Income 19% 20.87 Interest Interest Income Income 79% 81% H1'15 H1'16 H1'17 H1'18 H1'19 Interest Income ( N’bn ) Non-interest Income 32.89 7.94 3.67 0.54 6.65 25.40 25.36 5.00 0.33 2.21 3.84 20.16 4.10 17.50 3.65 3.38 2.44 0.59 3.30 2.96 0.52 28.37 0.32 0.69 22.82 21.45 0.54 17.39 0.66 14.00 0.54 0.34 0.08 0.37 0.85 2.17 3.09 3.89 3.00 3.75 H1'15 H1'16 H1'17 H1'18 H1'19 H1'15 H1'16 H1'17 H1'18 H1'19 Cash and Cash Equivalent Loans & Advances Investment Securities Net Fees & Commission Net Trading Income Other Income Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 14
Efficiency Continued Management of Costs despite Inflationary headwinds Operating Expenses ( N’bn ) Drivers ( N’bn ) 16.41 16.41 8.38 13.57 6.63 1.40 11.97 11.39 13.57 11.10 8.37 7.27 5.68 5.08 4.98 1.40 1.13 1.15 1.29 1.13 6.63 5.18 5.13 4.98 5.00 H1'18 Personnel Depreciation and Statutory & Other H1'19 H1'15 H1'16 H1'17 H1'18 H1'19 expenses amortization expenses Personnel Expenses Dep & Amortisation Statutory & Other Expenses Comments • Operating expenses increased by 20.93% to N16.41 billion from N 13.57billion in H1’2018. ➢ The increase in cost is driven by employee cost and Statutory expenses ➢ We remain focused on managing operating cost to improve cost to income ratio. Pr esent a t i on t o A na l y st & Invest or s - Ha l f Yea r 2019 15
Recommend
More recommend
