Wema Bank Gets National Bank Licence, to Raise $100m Tier 2 Capital

Wema Bank Plc on Thursday notified the Nigerian Stock Exchange (NSE)   that it has received a National Banking Licence from the Central Bank of Nigeria(CBN) to upgrade from its current regional banking authorisation after complying with the requirements.

According to Wema Bank, CBN gave the final approval  to convert its banking licence from a Regional Bank to a National Bank, through a letter dated November 17, 2015.

In 2010, Wema Bank downscaled to operate only within its core areas of business – South-South, South-West and Federal Capital Territory (FCT) Abuja.

Now, the bank with a capital base of N42.8 billion has met the regulatory requirements for the national banking licence  as stipulated by the CBN.

Speaking on the development , the Chief  Executive Officer of Wema Bank Plc, Mr. Segun Oloketuyi said: “This approval represents a milestone for the bank  in the delivery of its Project LEAP commitments. Six  years ago, we took a decision to refocus the bank's operations on its areas of strength and build a sustainable institution. We took advantage of the new licensing regime and applied for a Regional authorization with a pledge to expand in the near future, once the turnaround project was completed. The bank transformation was implemented in three phases; first to stabilize the Bank, second to prepare the building blocks for growth and third to go for growth. We are now within the third phase of the transformation project”

The CEO stated that the new licence has created opportunities to scale up growth, and added that the Bank will continue to strategically select its business locations across the country with focus on areas where return on investment will be maximised, and shareholder value enhanced over the medium to long term.

“To ensure that this approval is leveraged appropriately, we are already in the process of raising $100 million in Tier 2 capital and would commence a Tier 1 capital raise in quarter of 2016. This will further position the bank to pursue its growth strategy. The Bank remains on course in its turnaround program as evidenced by its robust balance sheet and sustained profitability, which would be maintained through its national authorisation," he said.

He expressed gratitude to the bank’s stakeholders, stating that the Wema Bank transformation project has succeeded largely due to the great support received from customers and shareholders.

“Our priority remains delivering delightful and memorable service to our customers,” Oloketuyi declared. The shares of the Wema Bank closed higher at N0.98 per share as investors reacted positively to the development .

However, the bear run at the stock market persisted yesterday with the NSE All-Share Index shedding six basis points to close at 28,203.20. This has brought the year to date decline to 18.6 per cent.

Bellwether stocks that contributed  the decline in included Nigerian Breweries Plc, Oando Plc and Guaranty Trust Bank Plc that she  0.5 per cent, 5.0 per cent and o.4 per cent in that order.