In a quest to boost its capital adequacy above its internal guidance of 15% from 14.3%, Wema Bank Plc announced plans to raise N20 billion through bond offering in August, 2018. The announcement was made by the commercial bank’s Acting Chief Executive, Ademola Adebise who confirmed that the bank is in the process of raising Tier II.
This will be the second tranche of the bank’s plans to raise N50 billion raise N50 billion Tier II capital through bonds to enable it deepen its market penetration and profitability.
Recall that Wema Bank in November, 2017, informed the Nigerian Stock Exchange (NSE) about its banking license upgraded to National Authorisation by the Central Bank of Nigeria (CBN).
The bank had issued a N20 billion bond in August 2016 to expand its branch network; in same vein, the bank issued local currency bonds after scrapping plans to issue a $100 million seven-year dollar bond because of currency risks.
Wema bank is yet to end its dividend drought, though the bank’s Group Managing Director, Segun Oloketuyi, had promised shareholders that the bank will pay dividend soon.
The bank recently released its results for the half year ended June 2018. Interest income dipped slightly from N25.4 billion in 2017 to N25.3 billion in 2018. Profit before tax however rose from N1.4 billion in 2017 to N1.8 billion in 2018. Profit after tax also increased from N1.2 billion in 2017 to N1.5 billion in 2018.
Wema Bank is currently trading at N0.68 per share in trading session on the Nigerian Stock Exchange (NSE). Year to date, the stock is up 1.47%.
About Wema Bank Plc
Wema Bank was incorporated in 1945 under the name Agbonmagbe Bank Limited. It was later became a public limited liability company in April 1987 and was listed on the NSE in January 1990.
The bank was granted a universal banking licence in 2001 but soon had to step down to a regional licence after facing operational challenges. SW 8 investments took control of the bank in 2009. In 2015, it obtained a national licence.