Wema Bank, leading the charge as the first Nigerian bank to bolster its capital this year, is set to embark on a share sale or public offer to fortify its position in anticipation of an impending industry-wide recapitalization mandate.<\/p>\n
This strategic move follows Wema’s successful mobilization of N40 billion ($50.7 million) earlier this month, elevating its shareholder funds to an impressive N160 billion ($202.79 million). The anticipated share sale is scheduled to conclude on December 29th.<\/p>\n
The decision aligns with the recent directive from the Central Bank of Nigeria, mandating banks to augment their capital to support economic expansion, as reported by Reuters. “Depending on the capital order, we can decide to do a special placement or a public offer,” stated Tunde Mabawonku, Wema’s Chief Finance Officer.<\/p>\n
With the infusion of additional capital, Wema Bank’s capital adequacy ratio is poised to reach 20% by year-end, a significant uptick from 16% in September. The bank foresees its pre-tax profit more than doubling to 75 billion naira ($95.1 million) in the coming year, compared to the 30 billion naira recorded this year.<\/p>\n
Anticipating a loan growth of 60% in the next year, Wema remains undeterred by the challenging currency devaluation environment. Mabawonku emphasized, “With more capital, our limit on lending is enhanced so we would be able to (boost loans).”<\/p>\n","protected":false},"excerpt":{"rendered":"
Wema Bank, leading the charge as the first Nigerian bank to bolster its capital this year, is set to embark on a share sale or public offer to fortify its position in anticipation of an impending industry-wide recapitalization mandate. This strategic move follows Wema’s successful mobilization of N40 billion ($50.7 million) earlier this month, elevating […]<\/p>\n","protected":false},"author":11,"featured_media":11945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[],"class_list":["post-11935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/11935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=11935"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/11935\/revisions"}],"predecessor-version":[{"id":11955,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/11935\/revisions\/11955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/11945"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=11935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=11935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=11935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}