Wema Bank raises N40bn ahead of recapitalisation exercise

Wema Bank announced that it raised N40 billion earlier this month, ahead of a possible banking industry recapitalisation exercise.

According to the announcement by the bank’s CFO, the bank is also seeking to raise more funds through a share placement or public offer.

The bank’s CFO, Tunde Mabawonku, revealed that the ongoing share sale is set to conclude on December 29. He highlighted that this sale would significantly boost shareholder funds, escalating it to N160 billion naira, combining retained earnings, up from the current N90 billion.

Mabawonku mentioned that after the rights issue concludes, the bank’s capital level is projected to reach 20 percent, up from 16 percent recorded in September.

This significant rise is an appreciation from the 12 percent recorded in 2021.

He noted, “We would have capital to do more next year. With more capital, our lending limit is enhanced so we would be able to (boost loans).”

Mabawonku projected that the bank’s earnings per share will hit N1 in 2023, while pre-tax profits are also projected to hit N75 billion in 2024.

He also projected a 60 percent growth in the bank’s loan book in 2024, higher than the 40 percent growth recorded in 2023.