Wema Bank, on Tuesday, said it is set to raise N200 billion in capital within the 24-month timeline issued by the Central Bank of Nigeria (CBN).
Mr Moruf Oseni, Wema Bank’s Managing Director and Chief Executive Officer (CEO), said this at the 2023 Annual General Meeting (AGM) of the bank in Lagos.
Oseni said that the preparedness followed its shareholders’ and board’s approval.
According to him, the bank will achieve its goal through public placements and a public offering.
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The News Agency of Nigeria (NAN) reports that the CBN on March 29 directed commercial banks in the country with international authorization to shore up their capital base to N500 billion and national banks to N200 billion.
Similarly, non-interest banks with national and regional authorization will increase their capital to N20 billion and N10 billion, respectively.
The recapitalization exercise expected to commence from April 1 through March 31, 2026, is to help the country attain its one trillion-dollar economy target.
Oseni explained that the CBN had done its due diligence and approved the bank’s N40 billion rights issue, which is currently undergoing the Securities and Exchange Commission’s (SEC) approval to be listed on the Nigerian Exchange.
He said: “Our capital base now stands not at the current N15 billion, but with the rights issue, at N55 billion, which is a significant headway towards N200 billion.
“We are confident that we will achieve this before the timeline expires.
“We have shared our plans with the CBN, and are working assiduously to meet the balance of our capital base in the near future.
According to him, at a minimum, Wema Bank will remain a national bank but will keep working tenaciously to become a Systematically Important Bank and re-attain Tier-one status.
The managing director said that the bank would continue providing optimum value for its shareholders and stakeholders.
On the bank’s financials for the year 2023,
Oseni said the Bank reported a 196 per cent increase in Profit Before Tax (PBT) from N14.75 billion in the previous year to N43.59 billion in 2023.
He mentioned that the bank also posted 220.4 per cent increase in its Profit After Tax (PAT) from N11.21 billion in 2022 to N33.66 billion in the year under review.
The managing director stated that the bank reported 70.63 per cent increase in its gross earnings from N132.30 billion in the previous year to N225.75 billion in 2023.
According to him, the Bank also posted 53.64 per cent increase in Loans disbursed in 2022, from N521.43billion to N801.10 billion.
Wema Bank also recorded a remarkable 220.53 per cent increase in earnings per share from N87.2 to N279.5, among other successful upturns.
Oseni noted that the Bank’s performance has been stellar throughout the year and the figures testify to that.
“As a bank, we feel privileged and lucky to have enjoyed the support of our shareholders and stakeholders, especially in the past year.
“None of it could have been possible without the support of the Board, my colleagues in Executive Management, and our customers, who are extremely loyal and committed to helping us improve,” he said.
Meanwhile, the bank’s shareholders unanimously approved a $50,000 dividend for the year ended Dec. 31, 2023.
They also approved the appointment of two new non-executive directors of the bank, namely: Ms Yewande Zaccheaus and Mr. Yusuf Kazaure, and the new Executive Director, Mr Segun Opeke, as new additions to the Wema Bank Board of Directors.
Commending the exceptional results, Mr. Badmus Tunde, a shareholder of the bank, described the performance as overwhelming, adding that profitability has been maintained.
Tunde welcomed the new chairman on board, as well as the managing director, noting that they are very capable of steering the ship.
“I want to congratulate the bank for coming this far, 79 years is not a child’s play, and I pray God grants us a long life.
“Since 1945, Wema Bank has seen the good, bad, beautiful, and the ugly, and through thick and thin, it has gotten to where it is today,” he said.
(NAN)
