Wema Bank’s AMCON levy increase by 56% in Q2 2016
By Kayode Ogunwale

With slight improvement in its earnings for unaudited second quarter ended 30 June 2016, Wema Bank Plc levy paid to Asset Management Corporation of Nigeria (AMCON) increased by 56.03 per cent.

The lender earnings which rose by 15.20 per cent during the period of 2016 second quarter paid increment of 56.03 per cent as AMCON levy when compared with what it paid during the same period of 2015.

Wema Bank interest income stood at N20.157 billion at the end of second quarter 2016 from N17.497 billion it made in the same period of 2015. However, the bank paid N579.215 million as AMCON levy in 2015 second quarter rose to N903.756 million at the end of 30 June, 2016.

AMCON was created in 2010 to be a key stabilizing and re-vitalizing tool established to revive the financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy.

Many shareholders were not happy with huge amount of money charged bank’s by the corporation especially when it increased the levies from 0.3 per cent to 0.5 per cent.

Meanwhile, Wema Bank’s interest expenses significantly increase from N8.433 billion in 2015 second quarter to N11.635 billion during the same period of 2016, represented N3.202 billion or 37.97 per cent.
The bank’s profit after tax increased by N105.791 million (10.61 per cent) at the end of second quarter of 2016 to N1.103 billion from N997.209 million it retained as profit in second quarter 2015.