Tuesday, 1 December 2015

WEMA BANK SECURES NATIONAL BANKING LICENCE

Wema Bank Plc has been granted a national banking licence by the Central Bank of Nigeria (CBN) to enable the lender deepen its business reach across the country.

The bank, which before the approval, was operating with regional banking authorization, got the uplift after complying with the CBN’s requirements.

 “The Central Bank of Nigeria has granted a final approval to Wema Bank Plc to convert its banking license from a regional bank to a national bank,” the lender said in a statement released yesterday.
The bank was in 2010, down-scaled to operate only within its core areas of business – Southsouth, Southwest and Federal Capital Territory (FCT) Abuja.

The lender, which operates with a capital base of N43.8 billion has met the regulatory requirements for the national banking license as stipulated by the apex bank. “This historic event has made Wema Bank the first bank to be granted a National Banking License having previously operated with a Regional License,” the statement said.

The bank’s Chief Executive Officer (CEO), Segun Oloketuyi, said: “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. The bank’s transformation was implemented in three phases; first to stabilize the bank, second to prepare the building blocks for growth and third to go for growth. We are now within the third phase of the transformation project.”

Oloketuyi  said the new license has created opportunities to scale up growth, helping the lender to strategically select its business locations across the country with focus on areas where return on investment will be maximized, and shareholders’ value enhanced over the medium to long term.

“To ensure that this approval is leveraged appropriately, we are already in the process of raising $100 million in Tier 2 capital and would commence a Tier 1 capital raise in the first quarter of 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.”


He expressed gratitude to the bank’s stakeholders, stating that the lender’s transformation project has succeeded largely due to the great support received from customers and shareholders. “Our priority remains delivering delightful and memorable service to our customers,” he said.


Credit:   thenationonlineng.net

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