Nigeria: Wema Bank Targets Tier-1 Status Amid Recapitalization Drive

Wema Bank’s Managing Director and Chief Executive Officer, Moruf Oseni, has announced the bank’s strategic plans to retain its national license and aim for tier-1 banking status following the fresh recapitalization of the banking sector.

Speaking on Tuesday at the bank’s Annual General Meeting, held virtually, Oseni outlined the progress towards meeting the Central Bank of Nigeria’s (CBN) recapitalization target of N200 billion.

“The apex bank has done its due diligence and approved our N40 billion rights issue, which is currently undergoing Securities and Exchange Commission 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 N200 billion,” Oseni stated.

Oseni assured shareholders that the bank is poised to meet the N200 billion target within the 24-month timeline through public placements and a public offer. “Following the shareholders’ and board’s approval, we are set to raise the N200 billion within the 24-month timeline. We are confident that we will achieve this 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,” he added.

He reaffirmed Wema Bank’s commitment to maintaining its national bank status while striving to become a systemically important bank. “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 affirmed.

During the AGM, shareholders approved a N0.50 dividend for 2023 and the appointments of two new non-executive directors, Yewande Zaccheaus and Yusuf Kazaure, along with new executive director Segun Opeke, to the Board of Directors.

Wema Bank’s 2023 financial performance was highlighted by a 196% increase in profit before tax, rising from N14.75 billion to N43.59 billion, and a 220.4% increase in profit after tax, from N11.21 billion to N33.66 billion. Gross earnings surged from N132.30 billion to N225.75 billion, marking a 70.63% increase.

Commending the bank’s performance, shareholder Mr. Badmus Tunde remarked, “Since 1945, Wema Bank has seen the good, the bad, the beautiful, and the ugly. 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.”