Following reports that Wema Bank is planning to enter into a merger process, the lender has denied taking such step to boost its competitiveness in the financial market.
Wema Bank, which has been operating from the shadows of the financial sector, was stated to be considering merger option with a financial technology firm or counterpart in the banking sector.
A report by Business Post attributing a source, said management was taking their time about this step, while preparing to snap up a financial institution.
However, a representative of Wema Bank, told Ripples Nigeria correspondent on the phone, that the company is not planning on merging, “That is not true.” she said, adding that, “We are not merging with any bank.”
Although, during the second quarter 2021, the Chief Financial Officer, Tunde Mabawonku, had hinted on the possibility of merger and acquisition to scale in the sector.
Wema Bank has been overshadowed in the mid-level financial category, as the management shifts focus to the financial technology market with its mobile loan product, ALAT, in a bid to reduce rising cost.
Recall, Wema Bank recently announced a 135.8% growth in pre-tax profits for the first 9 months of the year 2021.
Wema Bank recorded an increase of 135.8% in profit before tax (PBT) to close the quarter at N7.2billion. This follows a Year-on-Year growth of 9.1% in gross earnings to ₦63.1billion in 9M 2021 from ₦57.8billion in 9M 2020.
Deposit Liabilities grew by 9.3% to ₦879.8billion in 9M 2021 from ₦804.9billion in FY 2020 while Total Asset increased by 10.7% to ₦1.08trillion in 9M 2021 from ₦979.5billion in FY 2020.
Commenting on the results, the Chief Finance Officer, Mr. Tunde Mabawonku said: “We are delighted to announce the bank’s nine-month 2021results which show strong growth in key financial metrics despite the challenging macro economic environment arising from heightened inflation, supply chain disruptions, and the continued pass through impact of the Covid-19 pandemic
“The numbers show the bank continues to grow and improve its market share. We have now comfortably crossed the N1 trillion mark in total assets and have a share of close to three percent of industry deposits.
“We are sure to close the year with an even stronger performance. We will 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 commercial play. On our commercial business, we will continue our aggressive strategy to improve our commercial lending business alongside trade and other revenue lines,” Mabawonku said.
