Wema Bank is set to retain its national licence status in the ongoing banking industry recapitalisation exercise, hence, targeting N200 billion capitalisation.
The Central Bank of Nigeria (CBN) has recently issued a new recapitalisation guideline for the banking industry of which a bank with national licence is expected to recapitalise to N200 billion by 2026 deadline.
With Wema Bank operating with a national licence, it is expected to upgrade its capital base to a minimum of N200 billion.
At the bank’s 2023 Annual General Meeting (AGM) in Marina, Lagos yesterday, shareholders gave approval to the management of the bank to source for additional capital to make up the shortfall in a bid to meet the recapitalisation deadline.
Expressing gratitude to the bank’s stakeholders for their contributions to the tremendous results achieved in its 2023 financial year, Wema Bank’s MD/CEO, Moruf Oseni, disclosed the bank’s progress towards realising the recapitalisation minimum target of N200 billion set by the Central Bank of Nigeria (CBN).
“The apex bank has done its due diligence and approved our N40 billion Rights Issue, which is currently undergoing Securities and Exchange Commission(SEC)’s approval to be listed on the Nigerian Exchange. Our Capital Base now stands not at the current N15 billion but with the Rights Issue, at N55 billion—significant headway towards N200bn.
“Following the shareholders’ and Board’s approval, we are set to raise the N200 billion within the 24-month timeline through public placements and a public offer, which we are confident that we will achieve before the timeline expires. We have shared our plans with the CBN, and we will work assiduously to balance our Capital Base in the nearest future.
“At a minimum, Wema Bank will remain a National Bank, we will keep working tenaciously to become a Systematically Important Bank, retain Tier-1 status, and continue providing optimum value for every shareholder and stakeholder of Wema Bank,” Oseni pointed out.
The bank, in 2023, posted a 196 per cent increase in Profit Before Tax (PBT) from N14.75 billion to N43.59 billion; 220.4 per cent increase in Profit After Tax (PAT) from N11.21 billion to N33.66 billion; 70.63 per cent increase in Gross Earnings from N132.30 billion to N225.75 per cent; 53.64 per cent increase in Loans disbursed from N521.43 billion to N801.10 billion and a remarkable 220.53 per cent increase in Earnings per share from N87.2 to N279.5, among other successful upturns.
Commending the exceptional results, a shareholder, Badmus Tunde added, “I welcome the new chairman on board and our MD/CEO as well, it is evident that they are very capable of steering the ship. I want to congratulate the Bank for coming this far, 79 years is not child’s play and I pray God grants us long life. Since 1945, Wema Bank has seen the good, the bad, the beautiful and the ugly, and through thick and thin, it has gotten to where it is today. The results are overwhelming, and profitability has been maintained. Kudos to the Board and Management.”
