Wema Bank Plc it will raise N19.7bn ($100m) in fresh Tier 2 capital in a bid to position itself for growth after obtaining a national banking licence from the Central Bank of Nigeria last week. The CBN had granted Wema Bank an approval to convert its licence from a regional bank to a national bank.
The nation’s oldest indigenous lender, in a statement on Sunday, said it would embark on the proposed capital raising exercise during the first quarter of next year.
Speaking on the plan, the Chief Executive Officer, Wema Bank, Mr. Segun Oloketuyi, was quoted as saying, “To ensure that this approval is leveraged appropriately, we are already in the process of raising (N19.7bn) $100m in Tier 2 capital and will commence a Tier 1 capital raise in Q1 2016.
“This will further position the bank to pursue its growth strategy. The bank remains on course in its turnaround programme as evidenced by its robust balance sheet and sustained profitability, which will be maintained through its national authorisation.”
The Wema CEO stated that the new licence had created opportunities to scale up growth, adding that the bank would continue to strategically select its business locations across the country with focus on areas where return on investment would be maximised and shareholder value enhanced over the medium to long term.
Wema Bank had in 2010 limited its business operations to only the South-South, South-West and the Federal Capital Territory, Abuja.
The bank, which currently has a capital base of N43.8bn, said it had met the regulatory requirements for a national banking licence as stipulated by the CBN.
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