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PRESENT SENTATION ION TO ANALYSTS & INVES ESTOR TORS 2016 F 20 6 FUL ULL L Y YEA EAR R R RES ESUL ULT APRIL 2017 VALUE-DRIVEN RELATIONSHIP BANKING Since nce 1945 45 2016 Full Year Result April 2017 Presentation to

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SLIDE 1

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 1

APRIL 2017

VALUE-DRIVEN RELATIONSHIP BANKING

Since nce 1945 45

20 2016 F 6 FUL ULL L Y YEA EAR R R RES ESUL ULT

PRESENT SENTATION ION TO ANALYSTS & INVES ESTOR TORS

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SLIDE 2

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 2

1

Business & Operating Highlights

2016 FY Highlights Overview of Operating Environment Updates on 2016 Commitments Income Statement Highlights

2016FY Financial Performance

Financial Highlights Improving Financial Trend Efficiency Metrics Margin Analysis Profitability Deposit & Funding Loan Growth & Analysis Asset Quality Capital & Liquidity Balance Sheet Summary Managing Risk Key Performance Metrics

Pre rese sent ntation tion Outl tline ne

Outlook & Strategy

2017 Outlook Wema’s Strategic Objective Guidance Appendix

2 3

04 05 06 07 09 10 11 12 13 14 15 16 17 18 19 20 22 23 24 26

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SLIDE 3

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 3

Business & Operating Highlights

2016 FY Highlig hlight hts Over erview view of Ope perat ating ing Envir ironm nment ent Upd pdat ates es on 2016 Commitme mmitment nts Incom

  • me

e Stat atem emen ent t High ghligh lights ts 04 04 05 05 06 06 07 07

Section 1

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SLIDE 4

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 4

1.7m 7mn

CUSTOMER BASE

ALAT

DIGITAL BANK EARNINGS

N54.25b 25bn

18.48%

CREDIT REDIT

RATINGS INGS

ALTERN ERNATE TE

CHANN NNEL ELS

BRANCH NCH GRO ROWTH TH

NATIONAL LICENSE

IMPROVED VED

SERVICE RATING

No 1. bank to offer a full digital banking experience

BBB BBB-(NATIONAL LONGTERM RATING) F3 (LONG TERM RATING) BBB BBB-(SHORT TERM RATING) A3 (LONG TERM RATING)

ATMs 270 270 POS 5,508 Branches es 142 142 ISMS ISO certifi fied ed

2016FY 6FY Highlights hlights

Continued improvements recorded in the retail space

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SLIDE 5

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 5

The following changes in the operating environment impacted performance in 2016

Over ervi view ew of Ope perati ating ng Envir ironm

  • nment

ent

A new world d order er in t the form m of an anti -esta tabl blishme ment t moveme ement t Impl plem ementa entati tion of Fiscal policies es have and impacted ted money y suppl ply y economi mic growth th Oil Price e & Outpu put t and Exchange ge rate stability ty Reg egulato tory ry policies es and impact on industry ry growth th Red educed ed dispo posa sabl ble e income me and slowing g consumer mer dema mand d

  • The global economy was dominated with headlines of the

growing populist movement which saw the exit of Britain from the EU and the emergence of Donald Trump as the President

  • f U.S.
  • Oil price recovers after an agreement to cut 1.8mbd by OPEC

and non-OPEC members. Illiquidity continues to characterize the Nigerian FX market.

  • Low oil price, incessant disruption of oil production, delay in

budget passage and implementation moved the country into a

  • recession. The Government able was to implement 59% of

budget (Sept’ 2016) while GDP growth rate estimated was reported at -1.5% .

  • Monetary and Fiscal policy was divergent. The CBN continued

to use supply side management to conserve foreign reserves.

  • Disposable income was severely impacted due to inflation

which rose to 18.6% at year end. Wages on its part remained sticky.

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SLIDE 6

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 6

Upd pdate tes s on 2016 6 Comm

  • mmitm

tments ents

Grow the Franchise

  • Grow Depos
  • sit volumes

es within Retai ail segm gment of market et through ugh campus us storms ms, , prep epaid accounts, , partner nershi hip with telcos cos on agen ency cy and mobile e banking ng

  • (Retail Deposit increased 18.92% (Y-o-Y) from ₦89.74 billion (2015) to ₦106.71 billion in 2016. However,

there was a 0.58% decline in customer deposits (N283.33 billion) in comparison to ₦284.98 billion in Dec. 2015.

  • Expand

nd branc nch h network

  • rk in new market

ets and additiona nal branches ches in existing ng commer ercial hubs

  • Opened new branches in Lagos, Port Harcourt, Abuja, Minna and Lokoja.

Objecti ctive ves Tasks sks Status atus

Enhance Asset Quality & Capital

  • Improve
  • ved capital and funding

ng

  • Fully repaid 7 –year loan on maturity
  • Successfully raised Tier 2 capital of N6.25 billion

Improving Efficiency

  • Improvi
  • ving

ng oper erational al efficienc ency through ugh better use e of tech chno nology

  • gy
  • OPEX increased by 5.62% in 2016 below 2016 year end inflation rate of 18.6%
  • Cost to income ratio at 88.32%; still above target of c. 75%-80%. However, this grew slower than inflation.
  • Net Interest Margins at c. 5.93%.

Improve Organizational Capacity

  • Improvi
  • ving

ng ser ervice ce rating ng acros

  • ss the Bank by implem

ement enting ng the Purple e Rules es (ser ervice ce deliver ery) ) Charter er.

  • Industry rating improved from 19th to 13th (KPMG). The Bank is expected to attain top-10 next year

Deployment

  • f Alternative

Channels

  • Continue

ue dep eployme ment nt of alter ernati ative e channels els – POS, ATMs and mobile e applica cations ns

  • ATM deployment increased by 17.14%;
  • POS increased by 17.78%;
  • Number of active cards increased by 26%
  • Alliance with Etisalat with the introduction of Wema Easy Savers Account
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SLIDE 7

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 7

GROW ROWTH TH

18.48 48%

2016 16 2015 15 54.25 .25 45.79 .79

Gross Earnings (N’bn)

INCREAS ASE

7.54% 4%

2016 16 2015 15 3.28 28 3.05 05

PBT (N’bn)

INCREAS ASE

11.16% 6%

2016 16 2015 15 2.59 59 2.33 33

PAT (N’bn)

GROW ROWTH TH

6.09% 9%

2016 16 2015 15 28.07 .07 26.46 .46

Operating Income N’bn

INCREAS ASE

5.62% 2%

2016 16 2015 15 24.79 .79 23.47 .47

Operating Expenses (N’bn)

INCREAS ASE

32.77% 7%

2016 16 2015 15 25.77 .77 19.41 .41

Interest Expenses (N’bn)

DECLINE NE

153.8 3.85% 5% GRO ROWTH TH 13.16% 6%

2016 16 2015 15 9.80 80 8.66 66

Non-interest Income (N’bn)

GRO ROWTH TH 19.7 .71% 1%

2016 16 2015 15 44.45 .45 37.13 .13

Interest Income (N’bn)

Incom

  • me

e St State temen ent t Highli hligh ght

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SLIDE 8

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 8

2016FY Financial Performance

Finan ancia cial l Highl ghlig ight hts Impr proving ving Financi ncial al Trend nd Efficien ciency cy Margin in Analy alysis is Prof

  • fit

itab ability ility Depo posit sit Asse set t Quality lity NPL L s by by Sector

  • r

Capit pital al & Liqu quid idity ity Balan ance ce Shee eet Summ mmar ary Managi aging ng Risk sk Ke Key y Pe Perfor

  • rman

ance ce Metr trics ics 09 09 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20

Section 2

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SLIDE 9

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 9

Financi ancial al Highlig lights ts

Earnings, Profit, Capital

2016FY 2015FY Depos

  • sits (customer
  • mer)

N283.33bn N284.98bn Loans (net) N227.01bn N185.6bn Inter erest income N44.45bn N37.1bn Non-inte nteres est income N9.80bn N8.7bn Net inter eres est margi gin 6.56% 6.92% ROAE (annualised) 5.48% 5.18% ROAA (annual alised) 0.63% 0.60% NPL (%) 5.07% 2.67% Loan to dep epos

  • sits

70.77% 65.13% Cover erage age ratio (%) 100.00 133.61 Liquidity ratio 30.30% 33.57%

Revenue Generation Operating Efficiency

2016FY 2016FY 2015FY 2015FY Cost-to to-inc ncome

  • me

88.32% 88.49% Yield on Asset ets 15.65% 14.50% Oper erati ating ng expens nses es N24.79bn N23.47bn

Margin & Asset Quality

2016FY 2015FY Gross earnings ngs N54.25bn N45.79bn PBT N3.28bn N2.99bn PAT PAT N2.59bn N2.27bn CAR 11.07% 15.10%

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SLIDE 10

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 10 10

Impr proving ng earnings rnings tr trend end

Gross Earni rning ngs Intere rest Incom

  • me

Non-int interest t Income come

Fees & Comm 65% Net trading income 21% Other income 14%

2015 FY

Interest income 81.08% Non interest income 18.92%

2015 FY

Interest income 81.80% Non interest income 18.20%

2016 FY

Fees & Comm 63% Net trading income 22% Other income 15%

2016 FY 1.31 1.83 1.46 1.09 0.61 15.52 16.53 21.64 30.29 38.29 8.23 10.19 12.35 5.75 5.14

10 20 30 40 50 2012 2013 2014 2015 2016

N'bn

Cash & cash equivalent Loans & advances Investment securities

25.06 25.54 35.45 37.13 44.04

Non-Int Intere rest t Income come Mix x (2016) Non-Int Intere rest t Income come (2016) 6) Income come Mix x (2016) 6) Income come Mix x (2016) 6)

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SLIDE 11

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 11 11

Effici cien ency cy

Mitigating external headwinds with internal cost efficiency Operati ating ng Expens penses s Cost-to to-Inc Incom

  • me

Comment ments

  • Operating expenses grew by 6.73% to N24.79 billion vs. N23.47

billion (2015 FY). Drivers for the increase were;

  • Staff cost increased 5.72% from N9.79 billion to N10.35 billion.
  • Depreciation and Amortization increased 2.67% to N2.31 billion

from N2.25 billion (2015).

  • Operating expenses increased 6.68% from N11.37 billion (2015)

to N12.13 billion given the high pricing levels (inflation).

  • Cost to income declined marginally to 88.32% from 88.49%. We

expect further streamlining of our processes through alternative platforms, thereby reducing our cost to serve.

7.82 8.93 10.03 9.79 10.35 1.72 1.39 2.18 2.25 2.31 7.73 9.12 9.89 11.37 12.13 0.51 0.50 5 10 15 20 25 30 2012 2013 2014 2015 2016

N'bn

Personnel Dep & Amort Other Op. exp Operating lease

17.78 19.94 22.10 23.42 24.79

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SLIDE 12

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 12 12

Margin gin Analy alysis sis

Net Intere rest t Margin in Comme ment nts

  • Yield on assets (YOA) rose 1.07 percentage points from 14.50% in 2015 to 15.65% in 2016. This resulted from better pricing of assets

given the CBN’s stance through the Monetary Policy Rate (MPR). Other contributors were the high inflationary and high yield environment.

  • Net interest margin declined marginally to 6.56% from 6.92% due to the high yield environment.

Yield ld on Assets

15.39% 13.62% 14.25% 14.50% 15.65%

12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 2012 2013 2014 2015 2016

Yield on Assets

7.23% 5.98% 7.46% 6.92% 6.56% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2012 2013 2014 2015 2016

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SLIDE 13

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 13 13

Prof

  • fitabil

ability ty

Comme ment nts

Wema Bank in 2016 recorded gross earnings growth of 18.48% (y/y) to N54.24 billion despite the challenging macro economic

  • environment. In light of this;
  • Profit before Tax (PBT) increased (y/y) by 7.54% to N3.28billion as
  • perating expense grew faster than operating income (6.74% vs,

4.04%).

  • Profit after Tax (PAT) increased 11.16% (y/y) to N2..59billion.

The improvement recorded in 2016 resulted from our growing brand acceptance in the market place, increased market penetration, the encouragement of customers to our alternate channels and conscious cost management. We continue to review our business model – positioning for

  • pportunities while focusing on the continued roll-out of innovative

product offerings. We expect continued roll-outs, particularly in Q2’17.

  • 4.94

1.95 3.09 3.05 3.28

  • 4.99

1.60 2.37 2.33 2.59

  • 6.00
  • 5.00
  • 4.00
  • 3.00
  • 2.00
  • 1.00

0.00 1.00 2.00 3.00 4.00 2012 2013 2014 2015 2016

N'bn

PBT PAT

  • 2.16%

0.55% 0.67% 0.60% 0.63%

  • 133.59%

3.86% 5.42% 5.18% 5.48%

  • 160%
  • 140%
  • 120%
  • 100%
  • 80%
  • 60%
  • 40%
  • 20%

0% 20% 2012 2013 2014 2015 2016

ROAA ROAE

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SLIDE 14

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 14 14

Depo posi sits ts

Bank nk Deposit its Deposi sit t Type pe (2016) 6) Deposi sit t Type pe (2015) 5) Deposi sit t Mix x (2016) 6) Deposi sit t Mix x (2015) 5)

As at 2016, the Bank achieved the following;

  • Savings account deposits increased by 41.70% to N53 billion

from N37.4 billion. Going forward, we expect continued growth in retail deposits as the Bank records increased market penetration.

Comment ments

175.03 221.13 262.20 284.98 283.38 50 100 150 200 250 300 2012 2013 2014 2015 2016

N'bn

Term 56% Current 27% Savings 17% Term 57% Current 30% Savings 13%

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SLIDE 15

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 15 15

Loan an Growth

  • wth and

d Analy alysis sis

  • Construction,Real Estate,General& Oil and Gas accounted for > 10% of the loan book.
  • Others comprises of Admin & Support Services, Arts, Entertainment & Recreation, Human Health & Social

Work, Information& Communicationand Water Supply, Sewage& Waste Management

SECTOR 2016FY (N'bn) 2015FY (N'bn) Agriculture, Forestry & Fishing 2.26 2.94 Capital Market 5.12 7.97 Construction 35.41 10.62 Education 2.77 4.03 Finance and Insurance 3.33 2.30 General 27.99 24.01 General Commerce 20.70 17.69 Government 13.39 10.08 Manufacturing 11.61 8.91 Oil & Gas 41.05 32.10 Professional, Scientific and Technical 12.01 11.44 Power & Energy 10.47 3.28 Real Estate 34.21 39.89 Transport & Storage 6.99 2.06 Others 0.78 8.02 Total 228.09 185.35

Break akdown

  • wn of Loans

ans and Adva vance nces Loan an Analys alysis is 2016 6 FY Comment ments

Transportation and Storage

3%

Power and Energy Professional, Scientific & Technical Services

5% 5%

Manufacturing

5%

Oil & Gas

18%

Government

6%

General Commerce

9%

General

12%

Finance & Insurance

2%

Education

1%

Capital Market

2%

Agriculture, Forestry & Fishing

1%

Construction

16%

Real Estate Activities

15%

Others

0%

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SLIDE 16

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 16 16

Ass sset t Quality ty

Efficient Risk Management culture evidenced by continued low NPL ratio

Despite the challenging economic environment, the Bank recorded the following;

  • NPL ratio was 5.07% in 2016 due to the various macro economic headwinds

that characterized the economy and which impacted on the loan book.

  • Exposure to foreign loans remains low at c. N6.23 billion.
  • Coverage ratio (incl. risk reserve) remains robust at 100%, ensuring adequate

provisioning for known loan impairments and losses.

1 others include administrative & support service, government, human health and

professional activities

Comment ments

50 100 150 200 250 2012 2013 2014 2015 2016

N'bn

Gross loans Net loans Average Industry NPL

NPL (N’mn)

SECTOR 2016FY (N'bn) n) % Real Estate 1,381.26 11.86 Construction 2,383.29 20.46 Manufacturing 756.71 6.50 General & General Commerce 4,693.21 40.29 Power and Gas 121.18 1.04 Transport and Storage 458.55 3.94 Education 153.10 3.94 Agriculture 51.19 0.44 Finance and Insurance 32.24 0.28 ICT 24.95 0.21 Others1 336.41 2.89

Total

11,650.07 100

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SLIDE 17

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 17 17

Capit pital al and d Liqu quidi dity ty

As at 2016, the Bank recorded the following;

  • CAR was above the regulatory limit of 10% despite the introduction of regulatory changes.
  • Liquidity ratio was above the regulatory limit of 30%.

We note that the Bank’s CAR which was reported as 15.10% (2015FY) declined to 11.07% in 2016, due to the growth recorded in risk weighted assets.

Comment ments

Deposit (financial institutions); 9% Deposits (customers); 67% Other borrowed funds ; 7% Other liabilities; 5% Shareholders' fund ; 12%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

  • 20.00%
  • 15.00%
  • 10.00%
  • 5.00%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2012 2013 2014 2015 2016

Liquidity ratio CAR

CAR Liquidity ratio

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SLIDE 18

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 18 18

Balance ance Shee eet t - Summar mary

7% 11% 4% 14% 54% 0% 4% 0% 1% 5%

Cash & cash equivalent Restricted deposit Pledged assets Investment securities Loans & advances Investment properties Property & equipment Intangible asset Other asset Deferred tax asset

9% 67% 5% 7% 12%

Deposit (financial institutions) Deposit (customers) Other liabilities Other borrowed funds

Total al Liabili abiliti ties Total al Assets

N421.22bn

Total assets as at 2016

N396.74bn

Total assets as at 2015

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SLIDE 19

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 19 19

Risk Management remains at the core of our business model

Impact of declin ine in Governm ernmen ent Reven enue ue on Credit it Risk Continu inuing ing Challen llenges ges in the Oil and Gas Sector

  • r

Techn hnol

  • log
  • gy

related ated risks and

  • peration

ational al threa eats Excha hange nge Risk and Trade e Finan ance e

  • pport
  • rtun

unit itie ies

  • Expected decline in industry loan quality amidst global low

commodity prices and with government as the major business

  • driver. However, the Bank is poised to maintain high asset

quality through improved efficiency in loan collections and monitoring, as well as lending to highly structured and stable companies with good track record.

  • The bank has reined in lending to this challenged sector and

existing loans are given more attention and monitoring to arrest deterioration.

  • Appropriate controls and regular vulnerability/ penetration

tests being conducted on our electronic and alternative payment platforms to protect depositors and the bank against cyber-attacks and consequent operational losses.

  • Illiquidity and volatility in the foreign exchange market continue

to pose significant threats to trade businesses and other income lines .

  • Continuous review of our credit risk appetite and tightening of

risk tolerance limits on sectors/borrowers with negative

  • utlooks.
  • In response to rising inflationary trends, we will continue to

insulate our interest margins against any rate shocks via strategic gapping of rate sensitive assets and liabilities.

Manag naging ng Risk sk

Increa easin ing Infla latio ion n Rate e and Interes erest Rate Credit it Expos

  • sures

ures to Sticky ky Econom

  • mic

ic Sectors

  • rs
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SLIDE 20

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 20 20

Ke Key y Pe Performa

  • rmance

nce Metri trics cs

2016FY 6FY 2015FY 5FY 2014FY 4FY 2013FY 13FY 2012 12FY Yield ld on Assets s (%) 15.65 14.50 14.25 13.62 15.39 Net Intere rest t Margin in (%) 6.56 6.92 7.46 5.98 7.23 Loan an to Deposi sit t Ratio io (%) 70.77 65.59 57.65 47.02 42.31 Liquid quidit ity Ratio io (%) 30.30 33.57 32.80 76.61 64.53 Cost t to Income

  • me Ratio

io (%) 88.32 88.49 87.72 95.15 142.56 Cove verag age Ratio io (%) 100.00 133.61 119.38 113.0 217.25 Non-Performing

  • rming Loan

an Ratio io (%) 5.07 2.67 2.49 3.87 14.20 Re Return urn on Averag age Equit uity y (%) 5.48 5.18 5.42 3.86

  • 133.59

Re Return urn on Averag age Asset t (%) 0.63 0.60 0.67 0.55

  • 2.16
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SLIDE 21

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 21 21

Outlook & Strategy

2017 7 Outlook look Wema’s Strategic Objective Guida idance nce App ppend endix ix

Section 3

22 22 23 23 24 24 26 26

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SLIDE 22

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 22 22

2017 Outl tlook

  • ok

Glob

  • bal

l Economy nomy Domes mestic c Economy nomy Domes estic c Marke ket

  • Uncertainty is expected to characterise

the U.S and EU economy due to the rise in nationalism.

  • New trade agreements and partnerships.
  • Oil prices to remain volatile and low,

resulting from increased oil output from the U.S, surging dollar prices and waning Chinese demand.

  • Delay regarding the budget passage and

implementation in 2017.

  • GDP growth rate expected at c. 0.80%

(IMF)

  • Increased institutional and structural

reforms due to the launch of the Economic Recovery and Growth Plan (ERGP).

  • Inflation rate expected to moderate -

long run adjustments to earlier policy shocks.

  • Relative stability returning to the FX
  • market. However, sustainability of the

policy remains a source of concern

  • Equity markets to remain subdued, as

investors remain cautious due to uncertainty.

  • Money and Fixed Income markets

expected to remain investors safe haven.

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SLIDE 23

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 23 23

Our strategi egic c object ctive ve can be summa mari rized into three main n themes: s:

Improving operational efficiency – this centers around doing more with less resources. Reducing and eliminating wastages Minimizing reversals and identifying ways

  • f optimizing the physical, technology and

human capital of the Bank. Keeping Cost of funds under control Reduction in NPL through efficient accounts management and recovery Improving the quality and liquidity of the Bank’s risk asset portfolio – emphasis on aggressively ramping up recovery and ensuring better yields on our loan portfolio Serving Customers through Technology and Alternative platform. Increased revenue base through adoption of alternative channels Improving cost of funding (short and long term) – Getting better at mobilizing low cost funds, despite the expected high interest rate regime and also raising additional long term debt capital and better access to foreign lines. Closeness to Existing and Potential customers Adopting Technology and automation to monitor Customers’ behaviors and needs Provide value proposition and partnership through customers engagement

Expertise Excellence Efficiency

Wema’s Strategic Objectives

slide-24
SLIDE 24

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 24 24

Guidanc dance e – Focus s on Digital al Offering ering to grow

  • w customer
  • mer ba

base se

Customer

  • mer Deposit

it growth th

2016F 16FY

  • 0.58%

2017E 17E

10%

COMMENTS TS Deposit growth expected from continued brand acceptance and the realignment of volumes from institutional to retail and commercial sources.

Re Retail ail Penetr trati ation

  • n

(Personal Accounts – share of Deposit)

2016F 16FY

12.54%

2017E 17E

15%

COMMENTS TS Improved retail volumes from campus storms, the alliance with Telcos & Fintechs, mobile and digital banking.

Loan an Growth th

2016F 16FY

22.31%

2017E 17E

1%-2%

COMMENTS TS Loan growth to slow as we monitor the domestic environment.

Growth th in Non-int interest t Income come

2016F 16FY

19%

2017E 17E

15%

COMMENTS TS Increased fee income driven by transaction turnover and retail volumes.

Cost-to

  • Income

come Ratio io

2016F 16FY

88.33%

2017E 17E

80%

COMMENTS TS Impact of further process improvements and growth in top line revenue.

Net Intere rest t Margin in

2016F 16FY

5%

2017E 17E

6.5%-7.0%

COMMENTS TS Benefits from improving deposit mix

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SLIDE 25

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 25 25

Thank You

VALUE-DRIVEN RELATIONSHIP BANKING

Since 1945 945

slide-26
SLIDE 26

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 26 26

The Core of Wema’s Business model

We Wema a Bank’s strategic ic Objecti ctive ve

…optimizing our balance sheet while our customers and shareholders remain at the center of our activities.

Innovation & Technology Relationship Focus Risk Management National Footprint

Excellence Expertise Efficiency

slide-27
SLIDE 27

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 27 27

His istor

  • ry
slide-28
SLIDE 28

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 28 28

  • Two Independent Directors
  • Varied experience from Banking, Industry, Law and other relevant sectors
  • Implementing strong governance and risk controls

Board of Dir irect ctor

  • rs

s

slide-29
SLIDE 29

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 29 29

Branc nch h Deve velo lopme pments ts

Aminu inu Kano, no, Abuja uja Lekki i – Ajah, h, Lagos s Trans ans –Amad madi, i, Rive vers s Awolow lowo

  • Ro

Road, ad, Lagos

  • s

Ifo, , Ogun Ado-Badore, adore, Lagos

  • s

Admir iralt alty Ro Road d (Lekki), i), Lag agos

  • s
slide-30
SLIDE 30

2016 Full Year Result –April 2017 Presentation to Analysts & Investors Slide No. 30 30

Cauti tionar

  • nary

y Note te Reg egarding ding Forwar ard d Looking king St Stat atem ements nts

  • This presentation contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Wema Bank Plc, the Directors and other

members of its senior management about the Bank’s businesses and the transactions described in this presentation. Generally, words such as ‘‘could’’, ‘‘will’’, ‘‘expect’’, ‘‘intend’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘plan’’, ‘‘seek’’ or similar expressions identify forward-looking statements.

  • These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks,

uncertainties and other factors, many of which are outside the control of the Bank and are difficult to predict, that may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks and uncertainties include, but are not limited to, regulatory developments, competitive conditions, technological developments and general economic conditions. The Bank assumes no responsibility to update any of the forward looking statements contained in this presentation.

  • Any forward-looking statement contained in this presentation, based on past or current trends and/or activities of Wema Bank should not be taken as a representation that such

trends or activities will continue in the future. No statement in this presentation is intended to be a profit forecast or to imply that the earnings of the Bank for the current year or future years will necessarily match or exceed the historical or published earnings of the Bank. Each forward-looking statement speaks only as of the date of the particular

  • statement. Wema Bank expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect

any change in Wema Bank’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.