1 1

FY 2015 Results Presentation

Wema Bank Plc

2 2

Cautionary Note Regarding Forward Looking Statements

• 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.

3

section page

1 Overview of Operating Environment 4

2 Financial Highlights 10

3 Outlook 23

4 4

The Bank at a Glance (Dec 2015)

Wema Bank

The Bank is licensed by the

CBN as a National Bank

Number of Accounts

1.7 million

Number of Employees

1,080

136 branches

210 ATMs

4,550 PoS Terminals

Channels

Authorized capital of ₦20billion

divided into 40 billion ordinary

shares

Listing Nigerian Stock

Exchange NSE Ticker: WEMABANK

National Coverage

Credit Ratings (nga)

Fitch: Bbb-

Agusto & Co: Bbb-

Total Assets

₦397bn

Total Equity

₦46.1bn

Auditors

Akintola Williams Deloitte

4

5 5

The following changes in the operating environment impacted performance in 2015

Global developments – US Fed, Brexit & Eurozone, slowdown in China and extractive

economies

Fiscal policies: State Bail-outs, Intervention schemes, tax policies

Oil Price and Exchange rate stability

Regulatory policies and impact on short term growth

Subdued consumer demand

• Growth in the global economy remains muted; future interest rate changes will impact growth in both developed and emerging economies.

• The Federal Government has introduced a number of policies and schemes to stimulate growth and improve the revenue base. We expect such initiatives to continue in 2016.

• The regulator has used a number of means to regulate FX supply given dwindling FX revenues. The outlook for oil prices remains cautious.

• Regulators have made changes to the provisioning regime – General Loan Loss Provision for performing loans has been increased from 1% to 2%. The Monetary Policy Rate (MPR) and Credit Reserve Ratio (CRR) have been increased by 100bps and 250bps respectively.

• Rising inflation concerns remain. Increasing pressure on foreign exchange liquidity has also affected the cost of goods thus, reducing disposable income.

Overview of Operating Environment

6 6

2015 Full-Year Results Snapshot

6

2015 2014 % change

Comprehensive Income & Profit Trend

Gross Earnings N45.9 bn N42.2 bn 9.5

Net Operating Income N26.5 bn N25.2 bn 5.2

Operating Expenses N23.4 bn N22.1 bn 5.9

Profit Before Tax N3.05 bn N3.09 bn -1.3

Efficiency & Return

Cost-To-Income Ratio 88.5% 87.7%

Return on Average Equity 5.2% 5.4%

Business Capacity & Asset Quality Ratios

Total Loan to Deposit Ratio 65.1% 57.7%

Capital Adequacy Ratio 15.1%* 18.2%

Non-Performing Loan Ratio 2.7% 2.5%

*Capital adequacy reduced by 200bps due to new CBN reporting template

7 7

Updates on 2015 Commitments

OBJECTIVES TASK

Growing Business • Improved Deposit growth during the year despite TSA impact o (Customer deposit growth of 9.50%)

• Increase lending to productive sectors o (Year-on-year Loan growth of 25%)

• Grow top line earnings by gradual portfolio shift o (Year-on-year Interest income growth of 6%)

Capital Raise & Funding

• Improving capital and funding o The process for Tier 2 Capital (N15-20 billion) has commenced. Expected to

be concluded in Q2 2016 o Consistent repayment of existing Tier 2 capital

Improving efficiency • Improved operational efficiency through better use of technology o OpEx growth of 5.9%, below 2015 Inflation average of 9% o ISO 27001 and 20000 Certifications

Brand Refresh and Network Expansion

• Obtained National License o Expected to re-open Minna, Lokoja, Aba, Enugu and Kaduna - by H1

• Additional branches being developed in existing commercial hubs o Opened 10 new branches in South-West and South-South; 5 more under

construction in – Lagos, PH, Abuja

Deploy alternative channels

• Continued deployment of alternative channels – POS, ATMs, web and mobile applications o ATM deployment increased by 24% to 210; o POS increased by 35% to 4,550 o Number of active cards increased by 26%

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8 8

2015

Perception Brand refreshed; younger and more vibrant look

Banking License

Obtained National Banking Authorization

Capital N46billion in Shareholders’ funds (up 15% from 2014) Additional Tier 2 expected before end of H1

Market share Improved Market Share (of customer deposits) of >1.5%

Processes Increased number of automated processes Improved customer on-boarding process

Technology Robust mobile and internet banking platforms

NPL 2.67% NPLs

Performance Sustained Profitability

The Bank has improved

8

9

section page

1 Overview of Operating Environment 4

2 Financial Highlights 10

3 Outlook 23

10 10

Financial Highlights

Revenue Generation

Operational Efficiency

Margins & Quality

Financial Highlights 2015 FY 2014 FY Change

PBT ₦3.0b ₦3.1b

PAT ₦2.3b ₦2.4b

Capital Adequacy Ratio 15.1% 18.8%

Earnings per Share 6k 6k

Deposits ₦285b ₦259b

Loan book (Net) ₦185.6b ₦149.3b

Interest Income ₦37.1b ₦35.5b

Non Interest Income ₦8.9b ₦6.7b

Cost to income ratio 88.5% 87.7%

Cost of funds 5.7% 5.2%

Operating expenses ₦23.5b ₦22.1b heh

Net Interest Margin 7.2% 8.3%

Return on Equity 7% 7.3%

NPLs 2.7% 2.5%

10

11 11

Earnings & Profitability Trends

• Gross Earnings of ₦45.86billion up 9.5% in 2015 (from 2014 - ₦42.18billion)

• PBT of ₦3.05billion in 2015 down marginally 0.01% compared to ₦3.09billion in 2014

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2011 2012 2013 2014 2015

₦'million ₦'million ₦'million ₦'million ₦‘million

Gross earnings 22,773.92 30,716.39 35,184.21 42,186.87 45,869.44

2011 2012 2013 2014 2015

Profit/(loss) before taxation (3,770.02) (4,942.21) 1,947.31 3,093.94 3,045.53

Profit/(loss) after taxation (4,228.93) (5,040.63) 1,596.53 2,372,45 2,327.28

Net Interest Margin 6.23% 4.48% 7.01% 8.25% 7.17%

Cost to Income Ratio 129.88% 142.56% 95.15% 87.72% 88.50%

Return on average equity -35.73% -130.98% 9.13% 7.27% 6.78%

Return on average assets -1.78% -2.12% 0.68% 0.87% 0.78%

130% 143%

95% 88% 88%

2011 2012 2013 2014 2015

Cost to Income Ratio

0

10

20

30

40

50

2011 2012 2013 2014 2015

₦'billion

Gross earnings

12 12

Improved Revenue Base in 2015

Interest Income (₦‘billion)

Non-Interest Income (₦‘billion)

• Interest Income: ₦37.12bn in 2015 up by 5% (2014: ₦35.45bn)

• Non-Interest Income: ₦8.24bn in 2015 up by 22% (2014: ₦6.73bn)

• Net Trading Income increased by 109% from 2014 to 2015

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Interest Income 2015

2014

Cash and cash equivalents 1.09 1.462 Loans and advances to banks and customers 30.28 21.64

Investments securities 5.75 12.35

TOTAL INTEREST INCOME 37.13 35.45

0

10

20

30

40

Cash and cash

equivalents

Loans and advances

to banks and

customers

Investments

securities

Interest Income

2014

2015

0

2

4

6

8 Non-Interest Income

2014 2015

Non Interest Income 2015 2014

Retail banking customer fees & commissions 2.53 2.10

Corporate banking customer fees & commission 2.51 2.51

Other fees and charges 0.63 0.61

Net Trading Income 1.78 0.85

Others 0.80 0.66

Total Non Interest Income 8.25 6.73

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Interest Expense (₦‘billion)

Total Operating Expense (₦‘billion)

Interest Expensesrose by 14.8% between 2014 and 2015 due to the impact of the TSA, and harsh economic environment

Operating Expense increased by 5.9% on the back of branding costs and other general overheads

Continuous Efforts in Cost-reduction Strategies

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INTEREST EXPENSE 2015 2014

Deposits from banks 0.83 0.62

Deposits from customers 15.12 11.80

Other borrowed funds 3.46 4.48

Total interest expense 19.41 16.90

0

5

10

15

20

25

2015 2014

₦'b

illio

n

Interest Expense

Deposits from banks Deposits from customers Other borrowed funds

-

2,000

4,000

6,000

8,000

10,000

12,000

Operating Expense

OPERATING EXPENSE 2015 2014

Personnel expenses 9,790 10,033

Depreciation and Amortization 2,250 2,180

AMCON Levy 1,916 1,827

Repairs and Maintenance 1,653 1,325

NDIC Premium 1,053 1,054

Advertising and marketing 1,086 473

Security expenses 532 530

Service charge 526 370

Tax and related expenses 603 325

Transport & Communications 288 356

Other expenses 3,718 3,628

Total 23,415 22,101

14 14

Liabilities (₦‘billion)

Total Deposits (₦‘billion)

Deposit from customers increased by ₦26bn or 10% between 2014 and 2015.

Deposit from Retail and Commercial segment dominated total deposit in both years.

Liabilities Structure

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2015 2014

Deposit by sectors ₦'Billion ₦'Billion

Corporate Banking 39.56 34.33

Treasury 32.08 4.66

Retail Banking 22.33 36.75

Public Sector 8.13 56.63

Commercial Banking 182.85 126.58

Total 284.97 258.95

0

50

100

150

200

250

300

2011 2012 2013 2014 2015

₦'b

illio

n

Total Deposits

Liabilities 2015 2014

Deposits from banks - 3.24

Deposits from customers 284.98 258,96

Other liabilities 13.33 18.22

Other borrowed funds 52.29 58.38

Total 350.60 338.79

0

50

100

150

200

250

300

Deposits frombanks

Deposits fromcustomers

Deriv.financialliabilities

Current taxliabilities

Otherliabilities

Otherborrowed

funds

Liabilities Structure

2015 2014

15 15

Deposit Mix

Deposit by Type

• Deposit liabilities grew by 9% between FY 2014 and FY 2015.

• Deposit mix affected by TSA policy; gradual shift to low cost funding on-going.

• Improved branch network and growth in alternative channels expected to improve cost of funds.

Deposit by Type & Mix – Showing improved Retail performance

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Term

deposits

44%

Current

deposits

43%

Savings

13%

2014

Corporate

Banking

13%

Treasury

2%

Retail

Banking

14%

Public

Sector

22%

Commercial

Banking

49%

2014

Term

Deposits

56%

Current

Deposits

31%

Savings

13%

2015

2015

FY 2014

FY ∆

Deposit by sectors ₦‘

billions ₦‘

billions %

Corporate Banking 32.10 34.33 -6.50

Treasury 22.34 4.66 379.40

Retail Banking 39.56 36.75 7.65

Public Sector 8.14 56.63 -85.63

Commercial Banking 180.85 126.58 42.87

Total 282.99 258.95 9.28

Retail

14%

Corporate

11%

Treasury

8%

Public

Sector

3%

Commercial

64%

2015

16 16

Gross Loans by Type

Loans by Type & Category

Business Segments

2015 2014

₦’billion ₦’billion

Corporate Banking 56 48

Retail Banking 24 13

Commercial Banking 106 88

Total 186 149

14% 14%

4% 2% 3%

0%

5%

10%

15%

2011 2012 2013 2014 2015

NPLs

16

Corporate

Banking

32%

Retail

Banking

9%

Commercial

Banking

59%

2014

67 74 99

149

186

-

50

100

150

200

2011 2012 2013 2014 2015

₦'b

illio

n

Loans and Advances

Corporate

Banking

30%

Retail Banking

13%

Commercial

Banking

57%

2015

17 17

Credit Portfolio Analysis

• Total Loans as at 2015 financial year end was ₦188.02billion; representing a 25% growth from previous year • The Bank has continued to diversify its loan portfolio. • Total Oil & Gas exposure (upstream, midstream, downstream, services) was 17%.

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Real Estate

18%

Oil Downstream

13%

Automobile

1%

General

Commerce

9%

Construction

9%

Personal &

Professionals

8%

Adevrtising

6%

Government

5%

Oil Upstream

4%

Hotel & Leisure

3%

Education

2%

Telecoms

2% Agriculture

2%

Others

18%

2015

Commercial

Property

6%

Domestic

Trade

12%

Hotel &

Leisure

4% Oil

Downstream -

Marketing

5%

Oil Downstream

- Trading

8%

Personal &

Professionals

7%

Real Estate

Construction

6%

Capital Market

7%

Specialized

Construction

Activities

6%

Other

Professionals

6%

Power

2%

Others

22%

2014

18 18

Non- Performing Loans

• The NPL volume was N5.02 billion; significant share of this relates to certain legacy loans being worked out with customers

• The Bank’s remedial assets function is making efforts to realise certain collaterals where applicable.

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Agric

1%

Other Sectors

21%

Hotel &

Leisure 38%

Personal &

Professionals

10%

General

Commerce 8%

Automobile

0%

Telecoms

4% Oil

Downstream

5%

Advertising

5%

Real Estate

Activities 8%

2015

Aluminium and

Allied

Products13%

Domestic Trade

10%

Fishing1%

Food

Processing

1%

Hotel & Leisure

26%

Oil –

Downstream

Marketing

3%

Other

Professionals

4%

Professional.

Services

5%

Power

Generation 4%

Real Estate

Construction 6%

Specialized

Construction

Activities9%

Steel Rolling 6%

Telecoms

7%

2014

19 19

Risk Management remains at the core of our business model

Impact of decline in Government Revenue on Credit Risk

Changing regulatory requirements on Risk Measurement

Technology related risks and operational threats

Exchange Risk and Trade Finance opportunities

• A continuous focus on strengthening the Bank’s footprint in the retail segment of the market. As the impact of the 2016 budget trickles into the economy, we expect that we will benefit from increased disposable incomes.

• The Central Bank has introduced changes to the Capital Adequacy computation of banks. This changes mainly affect credit risk mitigation and eligible Tier-1 capital

• The growth in electronic and alternative payments has also created a new risk space for banks. Additional controls and support framework have been put in place to protect both depositors and the bank in particular. We have appointed a Chief Information Security Officer to provide leadership in this segment.

• Macro-economic headwinds continue to pose risks to trade finance and non-interest income for the Bank.

• While Oil & Gas, General Commerce and Real Estate Sectors continue to hold the bulk of the loan book, all sectors remain within the regulatory limits of 20% of total portfolio.

• The inflation rate has continued to inch up steadily with its attendant impact on interest rates. We continue to position ourselves from the shift in the yield curve.

Managing Risk

Increasing Inflation Rate and Interest Rate

Credit Exposures to Sticky Economic Sectors

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2011 2012 2013 2014 2015

Net Interest Margin (%) 6.72 6.44 7.01 8.27 7.17

Cost of Funds (%) 3.07 5.42 5.87 5.21 5.65

Loan-to-Deposit Ratio (%) 40.81 42.31 47.02 57.65 65.59

Capital Adequacy Ratio (%) -13.50 -16.00 27.00 18.22 15.09

Liquidity Ratio (%) 64.0 64.53 76.61 32.80 33.57

Cost to Income Ratio (%) 140.19 142.56 95.15 87.72 88.50

Provisions for Loan Loss (₦'billion) 32.00 10.00 9.10 3.98 3.79

NPL Ratio (%) 52.97 13.83 14.20 2.49 2.67

Return On Average Equity (%) -37.65 -133.58 9.13 7.27 6.78

Cost of Risk (%) 35.24 8.08 5.98 2.01 1.70

Key Performance Metrics

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Year-on-Year Improvement in Balance Sheet Trends

12.4% CAGR in Assets, 16% CAGR in Deposits; 31% CAGR in Loans

100

200

300

400

500

2010 2011 2012 2013 2014 2015

Total Assets

Billio

ns

100

150

200

250

300

2010 2011 2012 2013 2014 2015

Total Deposits

Billio

ns

0

10

20

30

40

50

2010 2011 2012 2013 2014 2015

Total Equity

Bill

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s

0

50

100

150

200

2010 2011 2012 2013 2014 2015

Loans and Advances

Billio

ns

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section page

1 Overview of Operating Environment 4

2 Financial Highlights 10

3 Outlook 23

The Federal Government will embark on an expansionary fiscal policy in order to stimulate the economy as contained in the 2016 budget document.

Stabilisation and recovery are expected to characterise the international oil markets in 2016.

We expect the on-going geo-political dynamic to continue between OPEC members and non-OPEC members.

Foreign income augmentation will be a focal point in 2016 and the non-oil sector is expected to grow significantly.

Direct investments are expected in agriculture, infrastructure, solid minerals while clear policy directives will return investment to other areas especially financial services.

We expect a slow growth in the first half of the year as the various policy initiatives will take time to materialise.

We expect more pressure on interest margins and increased regulatory scrutiny.

2016 Budget

Oil price

Diversification

Macro-Outlook for 2016

23

Growth

Outlook for 2016

24

Grow the Franchise Improve Organizational Capability

• Significant growth in customer acquisition, conversion and retention.

• Deployment of small and efficient branches; Continuous use of alternative platforms.

• Grow our SME base through further partnerships with funding agencies.

• Continuous bank-wide learning and development.

• Enhance brand visibility and awareness.

• Cost containment through improved technology use and process enhancement

Enhance Asset Quality and Capital Transform Service Delivery

• Sustain focus on quality obligors with strong and sustainable fundamentals in stable growth sectors.

• Improve our capital structure to provide buffers for growth.

• Enhanced portfolio monitoring and consistent sensitivity to macro/industry variables to determine early warning signs and take proactive measures for safety.

• Implement Purple Rules (service delivery) Charter.

• Embed service standards across the

network.

• Continued deployment of alternative channels to reduce cost to serve.

• Continuous process reviews.

The Bank’s 2016 growth strategy is largely centred around 4 key objectives

Guidance

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Headlines 2015 2016 Comments

Customer Deposit Growth 10% 10-12% Deposit growth expected to remain double digits; largely from a realignment of volumes from institutional to retail and commercial sources

Retail Penetration – (Personal accounts - share of deposit)

14% 15-20% Improved retail volumes from campus storms, prepaid accounts, partnership with Telcos on agency and mobile banking

Loan Growth 25% 5-10% Slow and cautious loan growth; will pick up in H2, 2016

Growth in Non-Interest Income

10% 15% Increased fee income driven by transaction turnover and retail volumes

Cost to Income Margin 88.5% 75-80% Impact of further process improvements and growth in top line revenue

Net Interest Margin 7.17% 7.00% Expected improvement in cost of funds with improvement in branch network and retail growth

ADDITIONAL INFORMATION

26

27 27

Timeline T

IME

LIN

E

2015 2013 2005 1991

2014 2013 2001 2015

Incorporated in Nigeria;

longest surviving

indigenous bank

Listed on the Nigerian

Stock Exchange

Obtained Universal Banking License

Acquired National Bank of Nigeria Plc

Successfully completed

private placement; CAR

at 27%

Divestment from 7

subsidiaries in compliance with CBN regulations

Total Assets & Contingencies grew to N397

billion

Divestment from

Associated Discount House

• Celebrated 70 years of building successful

relationships and creating value for all stakeholders

• Obtained National Banking License

1945

27

28 28

Experienced, Skilled and Diverse Board

1 2 3 4 5 6

7 8 9 10

1. Adeyinka Asekun (Chairman) 2. Segun Oloketuyi (MD/CEO) 3. Ademola Adebise (ED) 4. Moruf Oseni (ED)

9. Samuel Durojaye (Non-Exec) 10. Tina Vukor-Quarshie (Independent) 11. Omobosola Ojo (Independent) 12. Abolanle Matel-Okoh (Non-Exec)

5. Wole Akinleye (ED) 6. Folake Sanu (ED) 7. Ade Adefioye (Non-Exec) 8. Abubakar Lawal (Non-Exec)

11 12

• Two Independent Directors

• Varied experience from Banking, Industry, Law and other relevant sectors

• Implementing strong governance and risk controls

28

29 29

Wema Bank has received final approval from the Central Bank of Nigeria to convert our Banking License from Regional Authorization to National Authorization

The Bank now operates as a full-fledged Commercial Bank in all geo-political Zones and the Federal Capital Territory.

The Bank is fully prepared to scale up its operations to cover locations in the North and Eastern parts of the country

We expect to re-open Five (5) branches in the next 3 months in Kaduna, Lokoja, Minna, Aba & Enugu

Geographical Coverage

Previous coverage area

New branches to be opened

29

New Branch Developments

Aminu Kano, Abuja Lekki-Ajah, Lagos Trans-Amadi, Rivers

Awolowo, Lagos Ifo, Ogun Ado-Badore, Lagos

30

Thank You