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Wema Bank Records N676m Q1 Profit


By Eromosele Abiodun  , 05.30.2010

Wema Bank Plc has announced a profit after tax of N676 million for the first quarter ended, March 31, 2010, compared to a loss after tax of N2.05 billion in the comparable period of 2009. The bank’s audited results released to the NSE showed that it posted a profit before tax of N795 million compared to a loss before tax of N2.03 billion in 2009.

Wema Bank in a statement made available to THISDAY, said it recorded a turnover of N8.43 billion indicating an increase of 4.41 per cent over N8.08 billion recorded in the comparable period of 2009. The bank in the statement stated that it has put plans in place to ensure full return to profitability in the years ahead.

The bank urged investors be optimistic as its management is doing everything within its ability to ensure adequate value for investors and stakeholders.Wema bank has also presented to the Exchange it plans to apply for a regional banking licence under the proposed abolition of universal banking and the re-licensing regime of the Central Bank of Nigeria (CBN). This, the bank added, is part its plans to meet up with the recapitalisation directive of the CBN.

The statement reads: “The Bank intends to apply for a Regional License under the proposed new licensing regime of the Central Bank of Nigeria (CBN) when the guidelines are released.  “Internal Recovery efforts are estimated to yield about N10 billion between January and May 2010. We are quite close in achieving the set target.”The bank also said that it plans to raise N49 billion from the capital market, via a special placing offer where N15 billion will be sought from selected strategic local investors while N34 billion will be gotten from a group of foreign investors.

It further stated that it intends to take advantage of the opportunity presented by N200 billion Small and Medium scale Enterprises (SME) Refinancing Fund and the soon-to-be established Asset Management Company of Nigeria (AMCON) to recover about N12 billion of its toxic assets.The statement said: “The Bank will also leverage on recent initiatives of the CBN to discount some provisioned assets with the Asset Management company (AMCON), where at least N10 billion would be recovered, about N2 billion of provisioned loans will be refinanced under the N200 billion SME Refinancing Fund established by the CBN and being managed by the Bank of Industry. 

“The bank plans to raise capital through a special placing offer, with N15 billion to be gotten from selected strategic local investors and N34 billion from identified foreign investors. “The Bank is optimistic that it will recapitalise within the time frame set by the Central Bank of Nigeria.



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