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The Managing Director/Chief Executive Officer of Wema Bank,Moruf Oseni, has stated that the bank intends to maintain its national licence and strive for tier-1 banking status following the new banking sector recapitalisation.
Oseni made this announcement during the bank's Annual General Meeting, which was conducted virtually on Tuesday.
He also revealed the progress made by the bank towards meeting the recapitalisation minimum target of N200bn set by the Central Bank of Nigeria.
Oseni mentioned that the apex bank has approved the bank's N40bn rights issue, which is currently undergoing Securities and Exchange Commission approval to be listed on the Nigerian Exchange.
With this rights issue, the bank's capital base has increased from N15bn to N55bn, making significant progress towards the N200bn target.
Oseni further explained that with the approval of shareholders and the board, they are on track to raise the N200bn within the 24-month timeline through public placements and a public offer.
He expressed confidence in achieving this goal before the timeline expires and assured that they have shared their plans with the CBN, and are committed to balancing their capital base in the near future.
"At the very least, Wema Bank will maintain its status as a national bank, and we will persistently strive to achieve the status of a systematically important bank, regain tier-1 status, and continue to deliver maximum value for all Wema Bank shareholders and stakeholders."
At the Annual General Meeting, shareholders have given their approval for a dividend of N0.50 for the year 2023. Additionally, the appointment of two new non-executive directors, Yewande Zaccheaus and Yusuf Kazaure, and the new executive director, Segun Opeke, have been welcomed as new members of the Wema Bank Board of Directors.
In 2023, Wema Bank saw a significant 196 percent rise in pre-tax profit, increasing from N14.75bn to N43.59bn, and a 220.4 percent surge in post-tax profit, rising from N11.21bn to N33.66bn.
The bank's gross earnings increased by 70.63 percent, rising from N132.30bn to N225.75bn.
Mr. Badmus Tunde, a shareholder, praised Wema Bank's 2023 results, acknowledging the bank's resilience since its establishment in 1945.
The bank's profitability has been consistently maintained, and the board and management were commended for their efforts.
Wema Bank, one of Nigeria's oldest banks, recently marked its 79th anniversary and is also known for launching Africa's first fully digital bank, ALAT, which has been operational for seven years.
