Wema Bank Nigeria Plc has disclosed that the Remedial Assets Management Group (RAM) of the bank, charged with the responsibility of recovering loan loss has recovered N21 billion of both delinquent and provisional loans for the bank.
This has propelled a net impact of N16.27 billion on the bank’s profit and loss account for 2009.Besides, the bank has concluded arrangements to obtain licence that would migrate it from operating as a national bank to a regional one.Addressing shareholders during the 21st yearly General Meeting of the bank in Lagos on Friday, the Group Managing Director of the bank, Mr. Segun Oloketuyi said the money recovered so far has significantly reduced the amount the bank is expected to raise to achieve its recapitalisation exercise.
He said, Central Bank of Nigeria (CBN) has mandated the bank to raise its shareholders’ fund to the regulatory minimum of N25 billion by June 2010. As a result the bank has commenced the process of recapitalization in line with the CBN’s directive.“Approvals to issue new shares and embank on a special; private placement have been obtained from the Board of Directors and ratified by shareholders at the last meeting of the bank. In line with these approvals, management has opened discussions with a number of prospective investors. These discussions are at an advanced stage and we are optimistic that the bank will achieve the recapitalisation objectives within the stipulated time frame.
He added, “we are happy to note that the significant loan loss recoveries made have reduced the amount we need to raise to achieve this goal. We will continue to sustain the aggressive recovery programme which is yielding very impressive results and cost optimisation initiatives will continue to be implemented to reduce our operating overheads,” he assured.Oloketuyi told shareholders that in line with the banks policy on risk management, the bank has put in place a robust risk management solution framework in the bank.
He said this would help fortify the existing procedures as well as improve the current processes that have been put in place to manage and control risk.Reviewing the financial performance of the bank earlier, the Chairman of the bank, Mr. Samuel Olaniyi Bolarinde explained that the bank’s gross earnings rose to N16.27 billion during the nine month period to December 2009, compared to a gross income of N12.9 billion for the 12 months period to March 2009 while the Group’s gross income, increased to N18.9 billion from N16.55 billion.The bank, according to him, also posted a loss after tax of N2.09 billion in the period under review, compared to a loss of N19.4 billion recorded during the 12 month period to March 2009.
To consolidate on the performance, the chairman said the bank would continue to embark on cost optimisation and improve on its infrastructure by investing on modern technology to enhance operations in the bank.He added that the bank would do everything within its powers to diversify its business activities and acquire strategic leverage through targeted investments in or to deliver good returns on investment to its shareholders.