Wema Bank Set to Raise N200bn Fresh Capital, Shareholders Laud 2023FY Performance

Kayode Tokede

The management of Wema Bank Plc, yesterday announced plans to raise N200 billion fresh capital on the need to meet the Central Bank of Nigeria (CBN) new capital requirement for banks operating in the country.

At the virtual Annual General Meeting (AGM), the management received commendation from shareholders for a profitable 2023 financial performance that led to N0.50 dividend payout.

Expressing gratitude to the Bank’s stakeholders for their contributions to the tremendous results achieved, 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 CBN.

“As a Bank, we feel privileged and lucky to have enjoyed the support of our Shareholders and Stakeholders, especially in the past year. The Bank’s performance has been stellar throughout the year and the figures testify to that.

“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, but I think the most important ingredient of all is the followership of the 5000+ employees that I lead as the MD/CEO of Wema Bank.

“We have given them a purpose which has resonated with them, and they are working day and night to ensure that your Bank gets to the top. That is the reason you see the results you have seen”.

“To the owners of the Bank, our Shareholders, we are grateful. You have been relentless in your support of this administration and have constantly challenged to achieve greater and supported us.

“As always, we will continue to rise to the occasion. The apex Bank has done its due diligence and approved our N40billion Rights Issue, which is currently undergoing SEC approval to be listed on the Nigerian Exchange. Our Capital Base now stands not at the current N15billion but with the Rights Issue, at N55billion—significant headway towards N200billion. “

“Following the shareholders’ and Board’s approval, we are set to raise the N200billion 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 meet 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, reattain Tier-1 status, and continue providing optimum value for every shareholder and stakeholder of Wema Bank”, Oseni concluded.

According to shareholder testimonials, not only was the 2023 Wema Bank AGM allegedly the best AGM in the Bank’s history, the financial performance as captured in Wema Bank’s FY 2023 Annual Report, is also allegedly the Bank’s best so far.

Shareholders further commended the Bank on an exceptional 2023 financial performance as its financial report revealed a 196per cent increase in Profit Before Tax (PBT) from N14.75billion to N43.59billion, 220.4per cent increase in Profit After Tax (PAT) from N11.21billlion to N33.66billion, 70.63per cent increase in Gross Earnings from N132.30billion to N225.75 billion, 53.64per cent increase in Loans disbursed from N521.43billion to N801.10billion and a remarkable 220.53per 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 N0.50 dividend for the year ended December 31st, 2023, as well as the appointment of two new Non-Executive Directors of the Bank—Yewande Zaccheaus and Yusuf Kazaure, and the new Executive Director, Segun Opeke, as new additions to the Wema Bank Board of Directors.

Commending the exceptional results, a shareholder of the Bank, Mr. 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”.

Upon Shareholder approvals, Wema Bank is set to disburse the N0.50 dividend for FY 2023 to its shareholders by May 29, 2024. In view of the Bank’s financial progress over the past 5 years, it is predicted that Wema Bank’s 2024 financial performance will outdo its past accomplishments, including that of the year ended December 31, 2023. Following SEC approval, the Bank’s N40billion Rights Issue is set to be listed on the Nigerian Exchange.