IN growing the bank businesses, Wema Bank said, it is set to complete a $100 million Tier II capital raising exercise by the second quarter of this year.
The managing director of the bank, Mr. Segun Oloketuyi said this at the Bank’s fact behind its figure on the Nigerian Stock Exchange, NSE.
Oloketuyi said that the company is about to finalise tier 2 capital raise of $100 million to increase its capital position.
He added that the company had moved from negative capital position of N45 billion in 2009 to sufficient capital of N44 billion in shareholders’ funds, saying that in the period the bank moved from a distressed bank to a fully capitalised CAR of 18 per cent.
According to him, the bank will continue to implement it project LEAP in growing, low cost funding, efficiency, alternative platforms and performance.
Explaining further, Oloketuyi said, the bank will improve growth in retail deposits to keep cost of funds low and leverage on mobile solutions and technology as its competitive edge.
He pointed out that the bank aimed to drive better operating margins, achieve improved ROEs and grow foreign partnerships and syndications.
He noted that the bank would not be able to pay dividend until the retain earning move from negative to positive, adding that very soon the bank would reward its shareholders.
He added that the funds raised from the tier 2 market will enable the bank to achieve all this as it will have enough capital to work with.
Also, speaking the chief financial officer of the bank, Tunde Mabawonku said this offer will make the Bank’s capital ratio to top 25 percent next year, after the capital raising exercise from 18 percent now.
Speaking on the bank 2014 financial performance, he said gross earnings increased by 19.90 per cent between 2013 and 2014, saying that its profit before tax grew by 58.88 per cent to N3.1 billion from N1.9 billion in 2013.
He added that deposit from customers increased by 17 per cent while deposit from retail and commercial segment dominated total deposit in the year under review.
He pointed out the bank has continued to diversify its loan portfolio as the total loans as at 2014 was N149 billion, while non- performing loans was N3.79 billion as a result of aggressive loan recovery.