Wema Targets N200bn Fresh Capital, Seeks Tier-1 Status

By Adedapo Adesanya

Wema Bank Plc has announced plans to raise N200 billion in fresh capital to meet the Central Bank of Nigeria (CBN) new capital requirement for banks operating in the country.

At the virtual Annual General Meeting (AGM) held on Tuesday, the management received a commendation from shareholders for a profitable 2023 financial performance that led to a 50 Kobo per share dividend payout.

Recall that the CBN in March unveiled new minimum capital requirements for banks attainable by March 2026, pegging the minimum capital base for commercial banks with international authorisation at N500 billion.

The new minimum capital base for commercial banks with national authorisation was pegged at N200 billion while the new requirement for those with regional operations is N50 billion. The new minimum capital for merchant banks was put at N50 billion, while the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion, respectively.

Wema Bank’s MD/CEO, Mr Moruf Oseni, disclosed the bank’s progress towards realising the recapitalisation minimum target of N200 billion, set by the apex bank

“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 soon. At a minimum, Wema Bank will remain a national bank, we will keep working tenaciously to become a Systematically Important Bank, reattain Tier-1 status, and continue providing optimum value for every shareholder and stakeholder of Wema Bank,” Mr Oseni stated.

Shareholders at the event commended the bank on an exceptional 2023 financial performance as its financial report revealed a 196 per cent increase in Profit Before Tax (PBT) from N14.75 billion to N43.59billion, 220.4per cent increase in Profit After Tax (PAT) from N11.21 billion to N33.66 billion, 70.63per cent increase in Gross Earnings from N132.30 billion to N225.75 billion, 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.

Exercising their voting rights, the bank’s shareholders unanimously approved a 50 Kobo dividend for the year ended December 31st, 2023, as well as the appointment of two new Non-Executive Directors of the Bank—Mrs Yewande Zaccheaus and Mr Yusuf Kazaure, and the new Executive Director, Mr Segun Opeke, as new additions to the Wema Bank Board of Directors.