Wema Bank Plc Monday became the first bank to announce its reults for the nine months ended September 30, 2013, announcing a return to profitability.
The results, which were made available to stock market operators by the Nigerian Stock Exchange (NSE), showed a profit before tax of N563.8 million in 2013; up from a loss of N1.875 billion in the corresponding period of 2012.
The bank ended the period with revenue of N26.3 billion compared with N21.5 billion in 2012, while net income rose from N7.7 billion to N8.2 billion. Similarly, net fee and commission income increased from N3.16 billion to N3.7 billion, just as other income grew from N878 million to N1.72 billion.
After deducting taxes and other expenses, Wema Bank posted a profit after tax of N479.2 million as against a loss of N1.875 billion in 2012. The bank also ended the nine months with positive earnings per share (EPS) of five kobo, compared with a negative EPS of 15 kobo in the corresponding period of 2012.
Positive reactions by investors to the results boosted the equity price of the Bank by 2.5 per cent to close higher at N1.25 per share. A stockbroker, Mr. Ayo Oguntayo, said the results pointed to a better future for investors in the bank, adding that its future performance would be bolstered by the recent N40 billion capital injection.
The Securities and Exchange Commission (SEC) recently approved the N40 billion fresh capital raised by the bank through special placing of shares.
Speaking on the outcome of the special placing, the Managing Director/Chief Executive Officer, Wema Bank, Mr. Segun Oloketuyi, had thanked the shareholders and customers and reiterated the board and management?s commitment to ensuring that the bank regains its pride of place in the industry without compromising on values and standards.
Meanwhile, trading at the stock market was bullish as the NSE All-Share Index closed 0.16 per cent higher at 37,054.14, while market capitalisation ended at N11.804 trillion. Thirty-two stocks appreciated while 24 stocks dipped in value.