Infostride News reported that Wema Bank recently concluded a successful fund-raising venture, securing an impressive N40 billion earlier this month. This strategic move comes amidst anticipation within the banking sector of a potential recapitalization exercise. The bank, however, doesn’t plan to stop there, as it now eyes additional funds through either a share placement or a public offer.
Tunde Mabawonku, the Chief Financial Officer of Wema Bank, disclosed that the ongoing share sale is scheduled to conclude on December 29. He emphasized that the outcome of this sale would be instrumental in significantly bolstering shareholder funds, projecting a remarkable increase to N160 billion. This includes retained earnings, marking a substantial surge from the current standing of N90 billion.
In a statement captured by Reuters, Mabawonku underscored that, following the conclusion of the rights issue, the bank’s capital level is poised to reach 20%. This marks a notable upswing from the 16% recorded in September and a commendable leap from the 12% reported in 2021.
“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 remarked, expressing optimism about the bank’s expanded financial capabilities.
Looking ahead, Mabawonku outlined ambitious projections for Wema Bank’s financial performance. He estimated that the bank’s earnings per share would surge to N1 in 2023, demonstrating a positive trajectory. Furthermore, pre-tax profits are anticipated to reach an impressive N75 billion in 2024, reflecting the bank’s strategic planning and growth initiatives.
One of the key indicators of Wema Bank’s robust performance is its projected 60% growth in the loan book for the year 2024. This forecast surpasses the already noteworthy 40% growth recorded in 2023, showcasing the bank’s commitment to expanding its lending activities and contributing to economic development.
It is noteworthy that in the first three quarters of 2023, Wema Bank exhibited a stellar financial performance, reporting a pre-tax profit of N22 billion. This figure represents a remarkable year-on-year growth of 133.9% compared to the corresponding period in 2022. The bank’s ability to sustain such robust growth positions it favorably within the competitive banking landscape.
As Wema Bank strategically positions itself for the future, the successful capital raise and optimistic projections underscore its commitment to not only meeting regulatory requirements but also surpassing them. The bank’s enhanced capital base is expected to provide a solid foundation for increased lending activities, fostering economic growth and creating value for its shareholders.
In conclusion, Wema Bank’s recent financial maneuvers, as reported by Infostride News, showcase a proactive approach in navigating the evolving landscape of the banking industry. With a successful fund-raising initiative and ambitious growth projections, the bank appears well-positioned to capitalize on emerging opportunities and contribute meaningfully to the economic landscape in the coming years.
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