Wema Bank Plc says that the capital raising exercise of N40 billion will hit the market in September, barring unforeseen circumstances.
The bank’s Deputy Managing Director, Mr Moruf Oseni, said this at the company’s Half Year 2021 investors/analysts presentation on Friday in Lagos.
Oseni said the capital raise would give the bank expanded base of business over the coming years to compete favourably in the industry.
He said the bank would boost its capital position with a rights issue in September having obtained shareholders’ approval in May.
“The rights issuance is expected to hit the market in September, this month of August is for us to have a court ordered meeting to get shareholders together and agree on the scheme of arrangement,” he said.
According to him, the bank will embark on a road show from next week to sensitise shareholder groups and associations on growth plan and capital raise.
Oseni said the bank would reduce its shares on issue before embarking on the rights issue to ensure enhanced growth for shareholders.
“Wema Bank today has a large number of shares in issuance, but before we float the right issue we need to get the shareholders to reduce the shares in issue and on the back of that we then issue those rights.
“This will not change the shareholding structure of the shareholders.
“We just want to manage the number of shares in issue and that will impact on our ratios.” It makes sense to have more efficient shares in issue before doing the rights issuance,” he said.
On merger and acquisition, he said that acquisition was part of the bank’s plan to ensure organic growth.
Oseni said the acquisition was not limited to the financial sector space.
“In organic growth, there is possibility of a combination; either you merge or you acquire and this acquisition is not limited to acquiring another financial player in this space or a Fintech.
“We are looking at all possible options, whether you like it or not no matter how efficient you are.
“In this game, we are playing skill to skill and we also have huge aspirations to scale up in the shortest possible time,” he added.
Oseni disclosed that the bank priority remains the digital banking play to drive improved performance.
He noted that the bank would sustain its digital offering and focus to meet the need of its customers.
“We are committed to playing in this digital space, we have positioned ourselves in the last four years as a bank of choice, and we will build the ecosystem together as they flourish, we will flourish.
“We are trying to make significant investment in technology on our side because we realised that for us to be partners for some of these Fintechs, reliability must be key,” he said.
Also speaking, Mr Tunde Mabawonku, Wema Bank Chief Finance Officer said that gross earnings in H1 increased by 4.9 per cent to N39.8 billion against N38.0 billion in H1, 2020.
Mabawonku attributed the growth to higher interest rate environment notably in loans and advances.
He noted that non-interest income declined by 7.9 per cent to N7.6 billion in contrast to N8.3 billion in 2020 due to 82.6 per cent decline in net trading income.
Mabawonku added that digital channels remain a priority in meeting customer needs and closing the financial inclusion gap.
He said that USSD recorded more than 37.8 million transactions, and transaction value of N220.0 billion, reaffirming its focus to grow change usage. (NAN)
APC PCC commends CBN, Buhari for extension of naira swap deadline
The All Progressives Congress (APC) Presidential Campaign Council has commended President Muhammadu Buhari, the Central Bank of Nigeria (CBN) and its Governor, Mr. Godwin Emefiele for extending the naira notes swap deadline.
Buhari on Sunday approved a 10-day extension for Nigerians to swap their old N1,000, N500 and N200 notes for the new ones.
Emefiele announced this after a meeting with the President in his Daura country home.
The extension followed complaints by Nigerians who experienced difficulties getting the new notes via ATMs and over the counter from banks.
The APC PCC, in a statement by its Director, Media & Publicity, Mr. Bayo Onanuga, praised the move.
It said: “We want to commend the Central Bank of Nigeria and Governor, Mr. Godwin Emefiele for listening to the voice of well-meaning Nigerians on the exigency of extending the deadline for change of old N200, N500 and N1000 naira notes to the new ones.
‘Following difficulties experienced by Nigerians from across the country from getting the new notes via ATMs and over the counter from Banks, many Nigerians especially requested an extension of the 31 January 2023 deadline.
“We welcome the 10-day extension of the deadline and the additional seven days of grace.
“This window will enable Nigerians especially those in rural and remote areas to have more time to change their old notes and avert the panic that would have followed.”
It said the President deserved “special commendation” for approving the extension “and for his leadership and statesmanship.”
The APC PCC added: “In the same vein, we praise our presidential candidate, Asiwaju Bola Ahmed Tinubu for his forthrightness in addressing the concerns of Nigerians at his campaign rally in Abeokuta last week.
“Asiwaju Tinubu didn’t take the easy road by shying away from what would have caused serious inconvenience for our teeming masses.
“Asiwaju showed leadership and compassion for the welfare of Nigerians, at the most appropriate time.”
ASSBIFI commends extension of validity of old Naira notes
The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) on Sunday in Lagos endorsed the extension of the validity of old naira notes from Jan. 31 to Feb. 10.
Its president, Mr Olusoji Oluwole, told the News Agency of Nigeria (NAN) that the CBN decision to extend the deadline was a step in the right direction.
CBN Governor, Mr Godwin Emefiele, in a statement on Sunday said the CBN added a 10-day extension of the deadline of Jan. 31 to Feb. 10, to allow for the collection of more old notes.
He also noted that Nigerians would still have grace period to deposit their old notes directly with the CBN until Feb. 17.
“It is a step in the right direction, especially in providing more time for the return of old notes after the actual date of invalidation.
“CBN, however, needs to proactively monitor and address sufficient availability and distribution of the new notes.
“It should also increase sensitisation of, and probably incentivising the general public on the cashless policy to reduce the pressure on cash,’’ Oluwole said.
Banks have been contending with increased number of customers rushing to beat the Jan. 31 deadline given by CBN for the return of old naira notes which would cease to be legal tender.
New N200, N500 and N1,000 notes became legal tender on Dec. 15, 2022 after they were unveiled by President Muhammadu Buhari in Abuja on Nov. 23, 2022.
Many bank customers, however, complained that the new notes were not readily available and have yet to circulate adequately four days to the expiration of the old notes.
New Naira Notes: CBN Extends Deadline Till February 10
The Central Bank of Nigeria (CBN) has extended the deadline for the use of the old notes till February 10.
CBN Governor, Godwin Emefiele, announced the extension in a statement signed on Sunday.
He explained that the apex bank has sought approval from President Muhammadu Buhari to extend the deadline for the use of the old notes by 10 days.
“Based on the foregoing, we have sought and obtained Mr President’s approval for the following: A 10-day extension of the deadline from January 31 to February 10 to allow for the collection of more old notes legitimately held by Nigerians,” the statement read.
“A 7-day grace period, beginning from February 10 to February 17, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender Status.”
The CBN Governor also solicited the cooperation of all Nigerians in ensuring a hitch-free process for the implementation of the policy.
Before the apex bank extended the use of the naira note, many Nigerians experienced difficulty in lodging their old banknotes.
The scramble by many Nigerians to meet the initial January 31 deadline has been chaotic as many of them flood banking halls with huge cash in old notes to exchange them with new ones.
Others are seen in long queues at the few ATM points having the new naira notes in different parts of the country to have access.
The naira redesign was greeted by criticism by some Nigerians, including the presidential candidate of the ruling All Progressives Congress (APC), saying the policy was intended to scuttle his presidential ambition.
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