Wema Bank has introduced plans to boost N50 billion via a non-public placement, as a part of its technique to satisfy the N200 billion minimal capital requirement set by the Central Bank of Nigeria (CBN) for banks with nationwide authorization.
The {bank} says its preliminary N150 billion Rights Problem window had ended on Might twenty first, 2025.
At its Annual Basic Assembly (AGM), held electronically on Thursday, Might 22, 2025, the {bank} formally adopted a decision to safe further capital, reinforcing its dedication to assembly regulatory necessities whereas making certain sustainable progress.
The CBN’s newest recapitalization framework mandates that industrial banks with worldwide authorization should keep a minimal capital base of N500 billion, whereas banks with nationwide authorization, together with Wema Bank, should meet a N200 billion threshold.
With its present authorization, Wema Bank falls inside the nationwide class and should strengthen its {financial} place accordingly.
In its official assertion, signed by Firm Secretary, Johnson Lebile, Wema Bank outlined the capital-raising initiative.
“It was unanimously resolved that the {Bank} raises further capital within the sum of N50,000,000.00 (Fifty Billion Naira) solely by means of Personal Placement to satisfy a portion of the minimal recapitalization requirement for a Nationwide licensed {bank}.”
Moreover, shareholders accredited a dividend cost of N1 per share, representing a considerable enhance from earlier years’ payouts.
“It was unanimously resolved that the Administrators be licensed to pay a dividend of N1.00 every on Might 22, 2025, from the revenue of the {Financial} Yr Ended December 31, 2024, to members on the register of the {Bank} on the shut of enterprise on Might 1, 2025, topic to the deduction of acceptable Withholding Tax,” the assertion added.
Wema Bank recorded its most spectacular {financial} leads to at the least 5 years, delivering substantial progress in each income and profitability.
Gross earnings soared to N433.43 billion, pushed by sturdy curiosity revenue and strategic asset growth.
Revenue earlier than tax surged by 141% to N102.5 billion, marking a record-breaking milestone for the {bank}. Loans and investments shaped the spine of its income streams, contributing considerably to total efficiency.
The {bank}’s earnings had been primarily derived from mortgage disbursement and investments in authorities securities.
On the funding facet, the {bank} held N712 billion in Federal Authorities Bonds and N111.11 billion in Treasury Payments, providing a safer different in comparison with direct loans.
The CBN has emphasised that every one banks should meet the minimal capital requirement inside 24 months, commencing from April 1, 2024, and terminating on March 31, 2026.
The brand new capital requirement will consist solely of paid-up capital and share premium. This implies Shareholders’ Fund is not going to be thought of.
With its recapitalization drive effectively underway, Wema Bank is poised to strengthen its place inside Nigeria’s {financial} sector.
The deliberate N50 billion personal placement, alongside strong {financial} progress, displays a powerful dedication to compliance, profitability, and shareholder worth creation.
As market dynamics proceed to evolve, Wema Bank’s strategic {financial} choices will play a pivotal position in shaping its future trajectory within the Nigerian banking trade.
