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Tag: Wema Bank

  • Wema Bank ED joins Lagos Economic Advisory Committee

    Wema Bank ED joins Lagos Economic Advisory Committee

    Wema Bank’s Executive Director (ED) in charge of North & Retail Directorate, Moruf Oseni has been appointed as a member of the Lagos  State Economic Advisory Committee. He was named part of the 12-member committee that has representatives from both the public and the private sectors in January.

    He will be advising the government under the fourth strategic 2012 to 2025 Lagos State Development Plan (LSDP).

    A statement by the state government confirmed the rationale behind its decision to select Moruf as a member of the elite team.

    The Secretary to the State Government (SSG), Tunji Bello, noted that the Wema Bank Executive Director and other members of the committee were selected based on their track record of integrity, independence of thought and outlook, as well as diverse industry experience.

    Moruf joined Wema Bank in 2012 after years at global investment banks, such as Citigroup, Salomon Brothers and Renaissance Capital.

    He holds an MBA from the prestigious Institut European d’Administration des Affaires (INSEAD) in France, a Masters in Finance (MiF) from the London Business School, London and a B.Sc. degree in Computer Engineering from ObafemiAwolowo University (OAU), Ile-Ife, Nigeria. He is also a product of King’s College, Lagos.

     

  • Wema Bank gets new DMD

    Wema Bank gets new DMD

    The Board of Directors, Wema Bank Plc has appointed Ademola Adebise as the bank’s Deputy Managing Director (DMD).

    The board, which announced the appointment at a retreat in Lagos, said the Central Bank of Nigeria (CBN) has approved the appointment. In a letter to the bank, the CBN said it had no objection to the appointment.

    As DMD, Adebise will oversee Wema Bank’s Corporate and Business Directorate covering Corporate Banking, Treasury & Financial Institution, South Business Group (Southsouth and Southeast) and Business Support Division.

    Prior to his appointment, Adebise was the Executive Director in charge of Corporate & South Directorate.

    Adebise has over 28 years experience in the banking industry (inclusive of four years in management consulting), and has worked in various capacities in Information Technology, Financial Control & Strategic Planning, Treasury, Corporate Banking, Risk Management and Performance Management.

    Before joining Wema Bank, he was Head, Finance & Performance Management Practice at Accenture (Lagos Office) where he led various projects for banks in Business Process Re-engineering, Information Technology and Risk Management.

    He is an alumnus of the Advanced Management Program (AMP) of the Harvard Business School and a Bachelor’s degree holder in Computer Science from the University of Lagos. He obtained a Master’s degree in Business Administration (MBA) from the Lagos Business School.

    Adebise is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). He is also an Associate of the Chartered Institute of Taxation and Computer Professionals (Registration Council of Nigeria). He is an honorary Member of the Chartered Institute of Bankers of Nigeria (HCIB)and a member of the Institute of Directors. He equally serves on the board of AIICO insurance Plc, AIICO pensions management Limited and Financial Institutions Training Centre (FITC).

  • Wema Bank completes N50b bond listing

    Wema Bank completes N50b bond listing

    Wema Bank Plc yesterday completed the final stage of its N50 billion Bond Issuance process on both the FMDQ and Nigeria Stock Exchanges.

    A report released by the lender announced the dual listing of its series (1) seven-year Bond under the N50 billion Wema Funding SPV Plc Debt Issuance Programme. The bond tenure is seven years (due 2023) at 18.50 percent fixed rate.

    In a review note, the bank’s Managing Director, Segun Oloketuyi said: “Today (yesterday), Wema Bank completed the final stage of the Bond issuance process – the listing of Wema Bank’s series 1 (N6,295,000,000) seven-year Bond on both the FMDQ and NSE Exchanges. This is to ensure enough liquidity for the instrument and invariably increase the pool of potential investors”.

    With regards to the proceeds from the Bond issuance, he explained that despite the current economic environment, there are indeed opportunities for growth, with the government, individuals and corporates now focused on the primary and/or value chain industries. As such, the proceeds would be used in growing the SME portfolio of the Bank’s business.

    According to the subscription prospectus, the bonds are guaranteed and are direct, unsecured and unsubordinated obligation of the issuer and rank side by side without preference among themselves and equally with the claims of all holders of unsubordinated indebtedness as provided for in the Series 1 Trust Deed.

    It said in a case of the winding-up of the issuer, the claims of the trustee and the holders of unsubordinated notes against the issuer for payment of principal and interest in respect of the unsubordinated notes would be senior to the subordinated indebtedness of the issuer.

    It added that the bonds are backed by an undertaking issued by Wema Bank in favour of the trustee for bondholders supporting all the obligations of the Issuer under the programme. Besides, the bonds are exempted from taxation in accordance with the Companies Income Tax (exemption of bonds and short-term government securities) Order 2011, the Value Added Tax (exemption of proceeds of the disposal of the government and corporate securities) Order 2011 and the Personal Income Tax (Amendment) Act 2011. As such, all payments made to bondholders shall be free without deductions.

    Oloketuyi said the bank has witnessed a turnaround since the new management took over in June 2009, adding that before the coming of the new management, the lender had a negative capital position of N45 billion, with the lender virtually on its knees. He said the new management had grown the bank’s shareholders’ funds to N46 billion.

    He said the lender previously had less than one percent market share, and ran on obsolete technology, while Non-Performing Loans stood at 89 per cent. But with the new management, the NPLs have dropped to 2.9 percent while profitability has risen to new heights.

    “So, we had to start to look at what to do with the bank and, therefore, developed a containment strategy focusing on how to stabilise the bank. The periods of 2010 to 2014 was largely used to give life back to the bank. So, the first major assignment we had to do were to secure the regulatory capital. We had to recapitalise the bank, which we did,” he said.

  • National banking licence: Wema Bank opens new branch in Abuja

    National banking licence: Wema Bank opens new branch in Abuja

    Wema Bank Plc has opened a new branch on Dunukofia Street, Area 11 part of Garki, Abuja as it continues its strategic expansion following Central Bank of Nigeria’s (CBN’s) approval of its national licence.

    The license, approved in 2015, allows the lender to operate in all parts of the country.

    The new branch is expected to further strengthen the lender’s business in the Federal Capital Territory (FCT) in line with its growth plan.

    The bank’s Regional Operations Executive, South West & Abuja, Adeyemi Oshundiya said: “When we reopened our branch in Minna in September, I emphasised that Wema Bank, in its quest for growth, will only expand to places where there are compelling business opportunities. The bank’s position on this has not changed.”

    He explained that the new Dunukofia Branch used to operate from the Le Meridien Hotel. “The need to move to a bigger and more strategic location which will help us serve our customers better necessitated the opening of the new branch,” he said.

    In addition to expanding strategically, Wema Bank is also using technology to improve how it serves its customers. One such is the recent launch of Wema EasySavers, an account that can be opened with the unique code *945*10#, launched in partnership with youth-friendly telcoEtisalat. Wema EasySavers is available to all Etisalat subscribers. Its unique code *945*10# is layered on Wema Bank’s USSD banking code *945# launched earlier in the year. Wema Bank has been able to onboard more customers and has provided easier ways of banking through this service, as the code gives everyone with access to a GSM network the opportunity to bank on their mobile phones.

    Wema Bank has continued to show strength in the face of economic challenges in the country, opening new branches when people expect banks to downscale. Its strength and good standing in the Nigerian banking industry was recently validated by respected global ratings agency Fitch which affirmed Wema Bank’s Long-term National Rating and the Long-term Issuer Default Ratings (IDR) despite downgrading some bigger banks. The bank also raised N20 billion from the bond market recently to fund its expansion plans.

  • Wema Bank marks World Savings Day, adopts schools

    Wema Bank PLC marked this year’s World Savings Day with the adoption of five secondary schools in different states in the country.

    The lender also held financial education sessions with students of the adopted schools, with more than 500 students participating in different schools.

    The bank said the low level of financial inclusion in the country has led to only 35 per cent of the adult population owing savings accounts.

    The lender said savings is more of a habit formed over time than availability of structures encouraging it.

    Its Head, Brand & Marketing Communications, Charles Udoh, said: “This year’s World Savings Day celebration presented another opportunity to educate Nigerians about the importance of saving.

    “We have taken advantage of this opportunity to teach young people about the importance of having a savings culture. We hope we have been able to impart knowledge to these students through the financial literacy sessions we organised in schools across Nigeria. Hopefully, they will grow up with a savings habit which will help them navigate life and economic challenges.”

    Some of the students in the beneficiary schools gave their thoughts on savings. Asked why kids should save, Ugwuogbe Chidahe, a Junior Secondary School student at Olomu Community Junior Secondary School, Ajah said: “Savings among kids is an essential part of learning and growing up which should be encouraged very early in life. Savings can help kids to keep their parents out of financial trouble in emergency. Even though they are kids, it is important to have an emergency fund set aside to cover unexpected expenses.

    “Their little savings can go a long way to assist their parents, especially during a recession. For instance, such savings can be used to help their parents pay part of their school fees or assist in buying some essential things they need that their parents are unable to buy for them.”

  • Wema Bank posts N37.89b gross earnings in Q3

    Wema Bank posts N37.89b gross earnings in Q3

    Wema Bank Plc has announced a 16.36 per cent growth in gross earnings  for the third quarter ended September 30, this year. The figure, N37.89 billion, is an improvement on N32.57 billion recorded in the same period last year.

    The bank’s nine-month figure was driven by a 20.12 per cent and 16.79 per cent growth in interest, income, fees and commission  respectively.

    Its Managing Director/Chief Executive Officer, Segun Oloketuyi, said the lender’s third quarter result showed modest improvement in operating indices, despite the slowdown in the operating environment.

    He also gave further insight into the numbers, adding that the domestic environment remained largely strained, as the country’s August 2016 manufacturing and non- manufacturing purchasing managers’ index (PMI) data continued to show underperformance(s) at 42.1 index points and 43.7 index points respectively.

    He said inflation maintained an upward trend from 17.6 per cent (August 2016) to 17.9 per cent (September 2016), though at a slower pace (May to September 2016), as rising interest rate and foreign exchange illiquidity continue to impact prices.

    “Despite the harsh operating environment, Wema Bank continues to record growth, as gross earnings increased by 16.36 per cent to N37.89 billion from N32.57 billion in the same period last year. The bank optimised its balance sheet, as loans to customers rose by 20.78 per cent to N177.01 billion with interest income expanding by 20.12 per cent to N31.93 billion compared to last year while fees and commission increased by 16.79 per cent to N4.41 billion,” he said.

    According to Oloketuyi, the bank maintained its commitment to innovation, introducing *945# and other digital initiatives.

    “These efforts continue to engender confidence with our customers, leading to a growth in savings deposits by 18.10 per cent from N35.58 billion as at December 2015 to N42.02 billion as at the end of the period. The streamlining of our processes and the leverage on technology, led to improving efficiencies and cost optimisation, with operating expense declining by 1.77 per cent year-on-year from N17.49 billion in September 2015 to N17.18 billion in September 2016 compared to a general inflation level of 17.9 per cent.

    “We will continue to seek opportunities to improve our cost-to-serve through alternative channels and continued strategic improvements of our business model without compromising our service quality,” he said.

    Continuing, he said the bank’s prudent risk management model continued to enable us deal with the industry-wide spikes in loan defaults and attendant rise in Non-Performing Loans (NPL). He said the NPL ratio for the bank stood at 2.99 per cent as at third quarter 2016, which is below the regulatory threshold of five per cent. The coverage ratio for the Bank remained adequate at 124.82 per cent.

    “Going into the final quarter of the year we do not envisage any material improvement in the operating environment. Rather, we expect the gains of the fiscal and monetary policies to impact between first quarter and second quarter of 2017,” he said.

    “However, we believe we would close the year with improved performance. On the capital front, we are pleased to announce that we just concluded a Tier II capital raise of N20 billion. This will boost our Capital Adequacy Ratio (CAR), currently at 13.36 per cent (pre-capital raise) and support our medium term growth

  • Wema Bank grows Q3 gross earnings by 16% to N38b

    •Raises N20b new capital

    Wema Bank Plc grew top-line earnings by 16.3 per cent in the third quarter as the bank strengthened its capital base with a N20 billion tier 11 capital.

    Key extracts of the nine-month report of Wema Bank for the period ended September 30, 2016 showed that gross earnings rose to N37.89 billion by September 2016 as against N32.57 billion recorded in comparable period of 2015. Interest income had improved by 20.1 per cent from N26.58 billion to N31.93 billion while non-interest income was almost flat at N5.96 billion third quarter 2016 as against N5.99 billion in third quarter 2015. Operating expenses improved marginally from N17.49 billion to N17.18 billion. Profit before tax however dropped marginally from N1.53 billion to N1.49 billion while profit after tax also decreased slightly from N1.30 billion to N1.27 billion.

    Managing director, Wema Bank Plc, Mr. Segun Oloketuyi, said the results showed the resilience of the bank against the harsh operating environment.

    He noted that the bank had maintained its commitment to innovation and other digital initiatives, which have continue to engender confidence with customers, leading to a growth in savings deposits by 18.1 per cent from N35.58 billion as at December 2015 to N42.02 billion as at the end of the period.

    According to him, the streamlining of the bank’s processes and the leverage on technology, led to improving efficiencies and cost optimization.

    “We will continue to seek opportunities to improve our cost-to-serve through alternative channels and continued strategic improvements of our business model without compromising our service quality,” Oloketuyi said.

    He added that the bank’s prudent risk management model continues to enable it to deal with the industry-wide spikes in loan defaults and attendant rise in non-performing loans (NPL) as the bank’s NPL stood at 2.99 per cent by third quarter 2016, below the regulatory threshold of 5.0 per cent. Meanwhile, the coverage ratio for the bank remained adequate at 124.82 per cent.

    He said the bank have just concluded a Tier II capital raising of N20 billion, which will boost its capital adequacy ratio (CAR), currently at 13.36 per cent, adding that the new capital will support the bank’s medium-term growth plan.

  • Wema Bank celebrates customers

    Wema Bank celebrates customers

    • Branch transformation begins

    Wema Bank Plc joined other service organisations worldwide in celebrating the 2016 International Customer Service Week. The bank kicked off the celebration at one of its newly remodeled branches on Admiralty Road, Lekki, Lagos where the Managing Director, Segun Oloketuyi, joined some staff and customers for a health and fitness walk.

    Customer Service Week is an annual international event devoted to recognising the importance of customer service and honoring the people who serve and support customers with the highest degree of care and professionalism. This year’s event held from October 3 to 7.

    “At Wema Bank, fulfilling customer experience has over the years remained the focal point of our business strategy. Indeed, it is the only way we seek to differentiate ourselves in the market place. Our brand is built essentially by meeting and surpassing the expectations of our customers every time, everywhere and with every contact,” Oloketuyi said.

    To further underscore the bank’s passion for delivering superior customer experience and in pursuance of its newly acquired national banking licence, Wema Bank recently began the implementation of a brand transformation initiative focused on a phased branch network expansion and upgrade, as well as service delivery driven by innovation and technology. The Admiralty road, Lekki branch is one of the pilot branches showcasing the new face of Wema Bank.

    According the bank’s Head of Brand and Marketing Communication, Mr. Charles Udoh, “Our resolve to be a part of the annual international customers’ service week is a manifestation of our commitment to sustaining and ultimately surpassing our individual and collective abilities to delight our customers. Indeed, our ultimate goal is to build a brand that is a reference point in offering innovative customer experience driven by technology”.

  • Wema Bank, Bank of Uganda partner

    Members of staff of Bank of Uganda (BoU) visited Nigeria to learn about Wema Bank’s Balanced Score Card implementation programme on performance management.

    Wema Bank hosted them on a week-long knowledge and skills sharing session on Balanced Score Card and Performance Management.

    Speaking on the BoU’s decision to take a cue from Wema Bank’s Performance Management System, Mrs Agnes Kamya Kijjambu, who led the delegation from Uganda, said the BoU decided to partner Wema Bank after an extensive research.

    “While making our findings, Wema Bank was recommended to us by the Balanced Scorecard Institute, Washington. The Institute assured us that Wema Bank is one of the leaders in the Nigerian banking industry in terms of best practices in strategy and performance management,” Kijjambu said.

    Wema Bank’s Performance Management System was overhauled in 2013 with the adoption of the Balanced Scorecard methodology, in partnership with Balanced Scorecard West Africa. This is in line with the Bank’s Project LEAP growth strategy that seeks to propel the Bank to be a leading player within the Retail & Digital Banking landscape.

  • Wema Bank divests 75% GNI equity stake in N3.24b deal

    Wema Bank divests 75% GNI equity stake in N3.24b deal

    Wema Bank Plc has transferred its majority equity stake in the 56-year-old Great Nigeria Insurance (GNI) Plc to Insurance Resourcery and Consultancy Services Limited in a deal worth N3.24 billion.

    A transaction document obtained by The Nation at the weekend showed that the divestiture was concluded last week with the transfer of Wema Bank’s shares to Insurance Resourcery through a special purpose window of the Nigerian Stock Exchange (NSE).

    The report showed that a total of 2.87 billion ordinary shares of 50 kobo each of GNI were crossed in a single deal to Insurance Resourcery at N1.13 per share through the negotiated cross deal window of the Exchange.

    The cross deal, which was done through the off-market, negotiated cross deals window, was not subjected to the dynamics of price discovery for the particular period as off-market trade implies that the deal was sealed outside the floor of the NSE.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    At N1.13 per share, the transaction cost represents 126 per cent increase on the current market value of GNI, which has stagnated at its nominal value of 50 kobo per share. GNI currently has total paid up capital of 3.827 billion ordinary shares of 50 kobo each with a market capitalisation of N1.91 billion.

    A market pundit said the transaction cost further underlined the undervaluation of several stocks at the Exchange, coming after recent audit showed that Conoil’s net asset per share was higher than its market price.

    The Nation had reported earlier that authorities at the NSE, where both Wema Bank and GNI are listed, had approved the divestment.

    GNI started operations in 1960 and its businesses include general and life insurance.

    Following Central Bank of Nigeria (CBN)’s banking regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Wema Bank had opted to divest from its non-core banking businesses including GNI. The bank had since divested from Wema Insurance Brokers Limited, Wema Registrars Limited, Independent Securities Limited and Whyte Cleon Limited. It also integrated operations of four subsidiaries into its core banking business including Wema Asset Management Limited, Wema Securities and Finance Plc, Wema Homes (Savings and Loans) Limited and Wise Properties Limited. Wema Bank had 100 per cent equity stakes in the trio of Wema Registrars, Wema Insurance Brokers and Whyte Cleon Limited while it had 94.7 per cent stake in Independent Securities and 75 per cent in GNI.

    Meanwhile, the new core investor, a relatively unknown firm, will be required to restructure GNI’s issued share capital to dilute the existing concentrated shareholdings of the core investors and allow more investments from the general investing public.

    In the latest report on public shareholding status in quoted companies obtained by The Nation, the NSE indicated that GNI and 10 other companies were in violation of the listing requirement, which compels companies quoted on the main board of the NSE to ensure that a minimum of 20 per cent of its issued shares is in the hand of the general investing public.

    Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. The free float requirement for companies on the main board is 20 per cent while companies on the second board, otherwise known as Alternative Securities Market (ASEM) are required to have 15 per cent free float.