Wema Bank has denied a rumour circulating across social media that the bank, alongside some financial institutions, will lose their operational licences.
Recent industry occurrences have given rise to an influx of false information and propaganda targeted at causing unrest in the Nigerian financial services industry, as a WhatsApp message was circulating, alleging that a number of commercial banks stand at risk of losing their banking licence and being closed.
In a statement allegedly signed by the national secretary of the Nigeria Union of Pensioners/Federal Civil Service Pensioners (NUP/FCSP), Abuja Branch, Wema Bank was mentioned as one of the commercial banks slated for impending licence seizure by the CBN, while urging pensioners and by extension the public, to relinquish their Wema Bank accounts and adopt other banks not listed in the statement, as a ‘proactive step against being caught in the web of the impending closure of the mentioned banks.’
A statement from the bank and made available to LEADERSHIP, said, ‘Wema Bank is of sound financial health and at no risk of licence seizure or closure. Our financial performance showcases financial strength and stability, as validated by stakeholders and auditors at our 2023 Annual General Meeting (AGM); a feat we have achieved despite Nigeria’s economic fluctuations.
“In addition, we are moving ahead to meet the N200 billion minimum capital requirement stipulated by the Central Bank of Nigeria for a commercial bank licence with national authorisation. We have raised an additional N40 billion in fresh capital over the past months and are on the path to meet the target within 18 months.”
Stating that it’s financial strength is evident not only in its 2023 financial report and Q1 2024 financial results, it added that, “our growth trends over the past years ascertain that we are equipped to continue thriving. As reported in our FY 2023 Audited financial results, our financials grew strongly in the past year with 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 N33.66bn, 70.63 per cent increase in Gross Earnings from N132.30 billion to N225.75, 53.64 per cent increase in Loans disbursed from N521.43 billion to N801.10 billion, 26 per cent increase in Capital Adequacy Ratio from N12.74 billion to N16.04 billion and a remarkable 220.53 per cent increase in Earnings per share from N87.2 to N279.5, among other successful upturns. Our non-performing Loan rate also stands at 4.31 per cent, one of the lowest in the industry.”
Furthermore, its stressed that, stable financial future has been recently verified by the Pan-African rating agency Agusto & Co, who recently upgraded its rating to Bbb+ with ESG Score of 2 and confirmation of stable outlook.
“With confidence in our financial standing and stable outlook, we have petitioned the security officials to invite NUP for questioning and will be taking legal action on the perpetrator(s) of this libellous statement. Wema Bank is firm in its commitment to providing optimum returns for every stakeholder, and we will not condone the circulation of false information that could potentially cause panic in the country,” it noted.
