Wema Bank Gets Approval To Operate as National Bank
Wema Bank on Thursday said it had been granted a national banking license by the
Central Bank of Nigeria.
Its Managing Director, Segun Oloketuyi, was quoted as saying: “This approval represents a milestone for the bank in the delivery of its project LEAP commitments.
We took advantage of the new licensing regime and applied for a regional authorization with a pledge to expand in the near future once the turnaround project was completed.”
“This will further position the bank to pursue its growth strategy.
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Wema Bank said in a statement in Lagos that the development would upgrade it
from its current regional bank status.
The News Agency of Nigeria recalls that Wema Bank down-scaled to a regional
bank in 2010 to operate only within core areas of business in South South,
South West and the FCT, Abuja.
The bank said it got the new license because its capital base currently stood
at N43.8 billion and having met the regulatory requirements for the national
banking license as stipulated by the CBN.
Its Managing Director, Segun Oloketuyi, was quoted as saying: “This approval represents a milestone for the bank in the delivery of its project LEAP commitments.
“Six years ago, we took a decision to refocus the bank’s operations on its
areas of strength and build a sustainable institution.
We took advantage of the new licensing regime and applied for a regional authorization with a pledge to expand in the near future once the turnaround project was completed.”
Oloketuyi said the bank’s transformation was implemented in three phases to
stabilise the bank, prepare the building blocks for growth and to go for
growth.
He said the bank was now within the third phase of the transformation project.
The bank chief said the new licence had created opportunities to scale up
growth, adding that the bank would continue to strategically select its
business locations across the country.
Oloketuyi also said the bank would focus on areas where return on investment
would be maximized and shareholder value enhanced over the medium to long-
term.
He said: “To ensure that this approval is leveraged appropriately, we are
already in the process of raising 100 million dollars in Tier 2 capital and
would commence a Tier 1 capital raise in Q1 2016.
“This will further position the bank to pursue its growth strategy.
“The bank remains on course in its turnaround programme as evidenced by its
robust balance sheet and sustained profitability which would be maintained
through its national authorization.”
The bank boss expressed gratitude to stakeholders, stating that its
transformation project had succeeded largely due to the great support received
from customers and shareholders.
“Our priority remains delivering delightful and memorable service to our
customers,” Oloketuyi said.
The bank, in 2012, applied for a regional license following the reforms that
outlawed universal banking.
The CBN later announced new minimum capital requirements for a regional bank
(N10 billion), national bank (N25 billion) and international bank (N50
billion).
As regional bank, Wema Bank could only operate in a maximum of 12 of Nigeria’s
36 states (bordering two neighboring geopolitical zones) and Abuja.
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