The shareholders of Wema Bank Plc, have approved the bank’s request for a capital increase of N200 billion.
Also, the shareholders approved the dividend of 50 kobo per share for the financial year ended December 31, 2023, recommended by the Management Board, according to Nairametrics.
This was disclosed at the group’s annual general meeting (AGM) held electronically on Tuesday.
The bank said it intends to raise N200 billion through various means such as public offer, rights issue, or private placement to comply with the Central Bank of Nigeria’s directives on recapitalisation for a nationally licensed bank and meet its business needs
In addition, shareholders approved an increase in the issued paid-up share capital of the company from N6.429 billion to N25 billion by the creation of an additional 37.14 billion ordinary shares, each of which is valued at 50 kobo, which will have equal footing with the existing ordinary shares of the company.
The Chairman of the Board of Directors, Mrs. Oluwayemisi Olorunshola said that in the course of a three-year strategy to 2023, the bank has closed out its digital dominance.
olorunshola underlined that this has now been replaced by the top tier in a year plan aimed at driving the bank’s growth to one of the largest banks in the sector over the next three years over the next three years.
She said “We will continue to work towards becoming a leading bank and also continue with our ongoing efforts to strengthen our corporate and commercial play.
In addition, we will continue our aggressive strategy to improve our lending business alongside trade and other revenue lines, as well as work to drive growth through digital capabilities in the long term.”
Olorunshola noted that the bank raised N21 billion in additional tier 1, Quasi-Equity capital during the year and also completed an N40 billion Rights issue at the end of the year which shows investors’ confidence in the enterprise.
In addition, she said that the bank partnered with ECOWAS Bank for Investment and Development (EBID) to secure $50m in funding to boost business in the Agric and SME segments.
Meanwhile, the Managing Director/CEO of Wema Bank Plc, Moruf Oseni disclosed the Bank’s progress towards realising the recapitalisation minimum target of N200 billion, set by the Central Bank of Nigeria (CBN).
Oseni pointed out that, as a bank, it is privileged and lucky to have enjoyed the support of its shareholders and stakeholders, especially in recent years.
He said “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, and my colleagues in Executive Management.
“Our customers 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 that 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 us to achieve greater and supported us. As always, we will continue to rise to the occasion.”
He explained that the bank has shared its plans with the CBN and 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”, Oseni concluded.
