Recapitalisation: Wema Bank’s N40bn Capital Injection Awaits Regulatory Approval

Wema Bank said it is awaiting regulators’ final verification of its N40 billion Capital raising exercise results amid the planned banking industry recapitalisation exercise recently announced by the Central Bank of Nigeria (CBN).

The managing director/CEO of the bank, Moruf Oseni, who disclosed this at the weekend, while reflecting on the bank’s Full Year 2023 Audited financial statement, at the weekend, stated that the exercise actively positioned his financial institution for the new capital licensing requirements of the Central Bank of Nigeria. Wema Bank, he added, will accelerate its capital management plans and ensure it embarks on the journey to raise the required capital as quickly as possible.

Stating that 2023 showcased a revitalised Wema Bank as evidenced by the considerable improvements in its numbers, he said, the performance is headlined by impressive improvements in Profit before Tax which grew strongly by 196 per cent from N14.75 billion to N43.59 billion while total Assets grew from N1.43 trillion in 2022 to N2.24 trillion in 2023, representing 56 per cent growth within the period under review.

Moreover, he said, the bank recorded deposit growth of 60 per cent to N1.86 trillion from N1.16 trillion reported in FY 2022, noting that its earnings per share at 279.5 kobo shows the core improvements to its balance sheet.

Disclosing that the bank will be proposing a dividend per share of 50 kobo to its shareholders at the next annual general meeting (AGM) which is an improvement from 30 kobo it declared in 2022, this, he stressed, is in line with the bank’s capital conservation strategy and to ensure that it continues to provide returns to its shareholders in anticipation of additional capital raises scheduled for later this year.

According to Oseni, “we are satisfied with the bank’s performance in the first year of the new leadership team, as we move in a strong growth trajectory. Our target remains clear, we want to become a Top-Tier Bank in the industry powered by Digital excellence, we have carved a niche for ourselves with ALAT as a Retail platform, but we are now positioning the enterprise as the Intelligent platform for all financial services.”

In the months ahead, he said, the bank would be developing platforms and supporting initiatives that prioritise the needs of its customers, leveraging technology in solving problems across all sectors, even as he disclosed that his financial institution has partnered the federal government on upskilling 2 million Micro, Small and Medium Enterprises (MSMEs), provided engagement platforms for all National Youth Service Corps(NYSC) members and now implementing partnerships in Health, Education, Women empowerment and in the green economy.