Proshare Logo
   Market Date: 17-04-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs STOCKPICKS Taxation Telcos Travel & Tours Unlisted Stocks World of Business

Wema Bank to Raise N20bn Fresh Capital

Category: Capital Market


  Read (2651)
Wema Bank to Raise N20bn Fresh Capital

 

Wema Bank is to raise N20 billion fresh capital to boost its shareholders’ fund not later than June this year, as directed by the Central Bank of Nigeria (CBN).

 

 

The CBN had consequent upon the release of the examinations on Wema Bank, done in conjunction with the Nigerian Deposit Insurance Corporation (NDIC), given the bank up till the end of the first half of this year to recapitalise.To pave the way for the recapitalisation, shareholders of the bank last weekend approved an increase in the authorised share capital from 20 billion ordinary shares of 50 kobo each to 40 billion ordinary shares of 50 kobo each by way of rights to existing shareholders.

 

 

The approval was achieved in a special resolution at the 2009 Annual General Meeting (AGM) held in Lagos to chart a way forward for the 60 year old institution.The Group Managing Director of the bank, Mr. Segun Oloketuyi, said Wema Bank is adopting recapitalisation strategy defined along the parameters of loan recovery and capital raising. 

 

 

The Chairman of the bank, Chief Samuel O. Bolarinde, said prior to the crisis in the industry, the bank was already engulfed in board and management issues that necessitated the appointment of an interim management team by the regulatory authority, adding that the impact of the crises was significant on the performance of the bank.Bolarinde said the bank recorded gross earnings of N22 billion and N13 billion in 2008 and 2009 respectively. He explained that the massive decline in earnings in 2009 was a reflection of the extremely difficult operating conditions faced by the bank during the period under review.

 

 

“A loss after tax of N57 billion and N11 billion were also recorded for the same period. Huge losses were as a result of the provisions of N65 billion and N7 billion made during the periods,” he said.He assured the shareholders that the bank has reviewed its portfolio of investment as well as risk management structure to ensure effective self regulation and compliance. The bank, he added, has also set up recovery initiatives that have started to yield positive results.

 

(Source:ThisDay)



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint