The Nation Newspaper

Tag: Wema Bank

  • Wema Bank gets ISO certifications from BSI

    Wema Bank gets ISO certifications from BSI

    Wema Bank has been awarded two International Organization for Standardisation (ISO) Certifications by the British Standard Institute (BSI). The BSI is a leading organisation in Audit Management Systems and Processes. The certifications, the bank said, are the world’s highest accreditation for Information Security and Service Management.

    The ISO/IEC 20000-1:2011 (IT Service Management System) certification indicates that Wema Bank has designed, developed and established and implemented a template for improved IT services for both its internal and external customers.

    Also, the ISO/IEC 27001:2013, Information Security Management System certification attests to the lender’s commitment to security of both customer and data.

    Speaking on the award of the Certifications, the Head of Programme Management Office of Wema Bank, Mrs. Nike Makanjuola said the feedback from the auditors showed that compared to other banks audited in Nigeria, Wema Bank’s internal processes ranks among the  best in the industry.

    “We will however like to mention that continuous adherence to the processes, policies and procedures put in place during the implementation of the project are critical for us to continuously improve on Information Security and Service Management practices,” she said.

    The certifications are in line with the bank’s value proposition to be an institution of choice in service delivery and superior returns. It is a confirmation of the bank’s commitment to improving its systems and processes with a view to remain competitive, sustain its leadership position and meet the changing demands of different generations of customers.

    The Managing Director, Segun Oloketuyi said this came at a time the bank just secured its National Banking License and it further emphasizes the resolution of the Bank to always abide by its philosophy of service excellence and customer focus across all service points.

    He reiterated the commitment of the bank to continually improve its services using top notch technology for the benefit of its customers, adding that service innovation would continue to be a major component of the bank’s value delivery to its customers.

  • AMCON divests from Wema Bank, transfers shares to new investor

    AMCON divests from Wema Bank, transfers shares to new investor

    The Asset Management Corporation of Nigeria (AMCON) has sold its equity stake in Wema Bank Plc.

    Sources in the know told The Nation at the weekend that the divested shares were part of the large volumes of shares recorded by the bank at the Nigerian Stock Exchange (NSE) in the last two trading sessions.

    A regulatory source confirmed that the divestment has been approved by financial services regulator. Upon the divestment, the director representing AMCON on the board of Wema Bank, Mr Babatunde Kasali, has been recalled. Wema Bank has already filed necessary notifications of the divestment and the resignation of the AMCON-appointed director with the financial services regulators.

    Not less than three billion ordinary shares of 50 kobo each of Wema Bank have been transferred in cross deals in the last two trading sessions. Cross deal implies that the transaction had been pre-arranged and the buyer and seller matched ahead of the formal transfer of holding at the NSE.

    A dealer on the NSE said the transfers were being done through Global Asset Management Nigeria Limited. The deals helped to place Global Asset Management Nigeria Limited as the securities firm with the largest volume of trade and second largest value at the stock market last week.

    AMCON had amassed large shareholding in Wema Bank, the oldest surviving indigenous bank, through acquisition of bad loans and subsequent private placement.

    In 2013, Wema Bank had issued shares to AMCON in a cash-for-equity private placement that involved some 14 billion ordinary shares.

    The investor that bought over AMCON’s equity stake cannot be confirmed as at press time. Other major investors in the bank included SW8 Investment Company Limited and Odua Investment Company Limited.

    Weekly summary of activities at the NSE indicated that a total of 3.59 billion ordinary shares of 50 kobo each of Wema Bank valued at N3.47 billion was traded in 85 deals last week, the largest by any quoted company during the period.

    Global Asset Management Nigeria Limited was atop the activities chart with 7.18 billion shares, representing 74.08 per cent of total turnover during the week. It ranked second with turnover value of N6.94 billion, representing 27.5 per cent of total turnover value.

    Total turnover at the NSE stood at 5.087 billion shares worth N18.487 billion in 16,711 deals as against a total of 1.133 billion shares valued at N9.463 billion traded in 16,680 deals in the previous week. Wema Bank’s financial services sector accounted for 4.9 billion shares valued at N11.4 billion in 9,840 deals; representing 96.25 per cent and 61.64 per cent of the total equity turnover volume and value respectively. Wema Bank alone accounted for 70.6 per cent of total turnover volume.

    The Asset Management Corporation of Nigeria (AMCON) has sold its equity stake in Wema Bank Plc.

    Sources in the know told The Nation at the weekend that the divested shares were part of the large volumes of shares recorded by the bank at the Nigerian Stock Exchange (NSE) in the last two trading sessions.

    A regulatory source confirmed that the divestment has been approved by financial services regulator. Upon the divestment, the director representing AMCON on the board of Wema Bank, Mr Babatunde Kasali, has been recalled. Wema Bank has already filed necessary notifications of the divestment and the resignation of the AMCON-appointed director with the financial services regulators.

    Not less than three billion ordinary shares of 50 kobo each of Wema Bank have been transferred in cross deals in the last two trading sessions. Cross deal implies that the transaction had been pre-arranged and the buyer and seller matched ahead of the formal transfer of holding at the NSE.

    A dealer on the NSE said the transfers were being done through Global Asset Management Nigeria Limited. The deals helped to place Global Asset Management Nigeria Limited as the securities firm with the largest volume of trade and second largest value at the stock market last week.

    AMCON had amassed large shareholding in Wema Bank, the oldest surviving indigenous bank, through acquisition of bad loans and subsequent private placement.

    In 2013, Wema Bank had issued shares to AMCON in a cash-for-equity private placement that involved some 14 billion ordinary shares.

    The investor that bought over AMCON’s equity stake cannot be confirmed as at press time. Other major investors in the bank included SW8 Investment Company Limited and Odua Investment Company Limited.

    Weekly summary of activities at the NSE indicated that a total of 3.59 billion ordinary shares of 50 kobo each of Wema Bank valued at N3.47 billion was traded in 85 deals last week, the largest by any quoted company during the period.

    Global Asset Management Nigeria Limited was atop the activities chart with 7.18 billion shares, representing 74.08 per cent of total turnover during the week. It ranked second with turnover value of N6.94 billion, representing 27.5 per cent of total turnover value.

    Total turnover at the NSE stood at 5.087 billion shares worth N18.487 billion in 16,711 deals as against a total of 1.133 billion shares valued at N9.463 billion traded in 16,680 deals in the previous week. Wema Bank’s financial services sector accounted for 4.9 billion shares valued at N11.4 billion in 9,840 deals; representing 96.25 per cent and 61.64 per cent of the total equity turnover volume and value respectively. Wema Bank alone accounted for 70.6 per cent of total turnover volume.

     

  • Wema Bank’s Capital Adequacy Ratio strong, says management

    Wema Bank’s Capital Adequacy Ratio strong, says management

    Wema Bank Plc yesterday said its Capital Adequacy Ratio (CAR) is 18.6 per cent based on September 2015 results, which is significantly higher than the 10 per cent required by the Central Bank of Nigeria (CBN) for regional and national bank.

    The CAR is the ratio of a bank’s capital to its risk. The CAR for banks’ with offshore subsidiaries is 15 per cent minimum requirement (which rose to 16 per cent by March 1, 2015 for systemically important banks). The CAR for banks operating only in Nigeria is 10 per cent.

    In a statement, the lender said it has existing shareholders funds of N44 billion; significantly higher than the N25 billion shareholders funds required for national banks, prompting it to apply for national license, which has been approved by the CBN.

    The lender said it is not part of the banks required to re-capitalise by the CBN, otherwise, the apex bank would not have granted it national license

    “The bank’s decision to go national is largely for us to be able to take advantage of any opportunities where they exist. Our approach to the implementation of a national banking expansion will be a phased roll-out of branches,” the statement said.

    It added: “We will quickly open branches in locations where we already have existing infrastructure and captive business to ensure that we take immediate advantage of the latent business opportunities in those locations. Subsequently, we will take a cautious approach to expansion and only deploy resources to areas that have been assessed as commercially viable.”

    The statement further said: “Going by the encouraging and growing level of electronic banking penetration in the country, our new branch builds will be very cost effective as the space required to serve will continue to get relatively smaller as it obtains today in more advanced financial systems.”

    It added: “The bank requires additional capital largely to grow its business in the new year and to also provide additional buffer to cushion against economic shocks.

  • Wema Bank secures national banking licence

    Wema Bank secures national banking licence

    • Capital base hits N43.8b

    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 regionalbanking authorisation, 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, downscaled 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 licencing regime and applied for a Regional authorisation 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 stabilise 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 licence 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 authorisation.”

    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.

  • Wema Bank records N20.87b gross earnings

    Wema Bank records N20.87b gross earnings

    Wema Bank’s unaudited financial results for the period ended June 30, 2015, showed that it recorded  gross earnings of N20.87 billion, up from N20.82 billion in first quarter of last year.

    Its Net Interest Income stood at N9.06 billion, down from N9.71 billion in first quarter of last year while Profit Before Tax dropped to N1.17 billion, from N1.70 billion in the first half of 2014.

    The bank’s Managing Director/CEO, Segun Oloketuyi, said: “Given the tough operating environment in the first half of 2015 attributable to economic headwinds, regulatory restrictions and political uncertainty, the bank has been able to sustain its financial performance, albeit, on a lower level compared to the same period in 2014”.

    He said the first quarter of the year was characterized by election-related activities and political maneuverings with limited emphasis on economic matters, while the second quarter was largely characterized by the continued pressure on the currency, the tight monetary policy conditions and the low level supply of petroleum products. All these issues affected consumer discretionary spending and indeed the growth in our Retail volumes.

    He said the Cash Reserve Ratio (CRR) harmonisation has reduced liquidity with significant impact on   margins from money market investments. “We are confident that as the new administration settles into office, its policy thrust will become clearer, hence, enabling us to continue to make well informed lending decisions mitigate risk exposures and further expand our customer base.”

    The bank’s Chief Finance Officer, Tunde Mabawonku, said: “Operationally, the bank has continued to efficiently deploy its assets. Our loans to deposits ratio has moderated to 57.1 per cent, compared to 57.6 per cent as at December 2014, through a cautious approach to our lending, pending policy clarity from the new administration.

    The liquidity squeeze and tight monetary policy conditions affected our yields from money market investments. Technically, banks can only lend 39 per cent of available resources, as CRR is 31 per cent and liquidity remains 30 per cent. We therefore used the first few months of the financial year to streamline our mix of deposits and funding sources. This has resulted in slightly smaller deposit liabilities volumes but a better cost of funds.

  • Ondo community smiles again as WEMA bank makes a return

    It was a fun-filled Monday morning for indigenes and residents of Irun Akoko in Akoko North West Local Government Area of Ondo State, as the WEMA bank plc temporarily relocated its corporate headquarters to the ancient town for the inauguration of its newest branch. 

    The people had good reasons to be happy. For years, they have had to travel some distance for banking services. Although the town had hosted a branch of the bank in the past, but it was moved away due to restructuring in the banking sector some years ago.

    The joy of the indigenes and other residents knew no bounds, as they trooped out for the occasion, which understandably was turned in to carnival, as indigenes temporarily relocated to the town from their various places of work to be part of history.

    Residents from the various numerous farm settlements around the town shelved whatever farm activity they had to participate in the opening of accounts immediately after the commissioning.

    Top executives of the bank, led by the Managing Director/Chief Executive, Mr. Segun Oloketuyi, who incidentally is also a son of the soil, could not hide their joy, as they were treated to warm reception by the very appreciative people, who promised that the branch will rank among the best in the country.  Mr. Oloketuyi urged the people to maintain a high sense of patronage, saying the bank has marked the turning point in the development of the town.

    Accompanied by the high chiefs in the town, the regent, Princess Oluremi Obideyi, while cutting the tape of the new bank, expressed appreciation to the authority of WEMA bank for the imposing structure, which she said has brought relief to the town and its neighbouring communities.

    The regent, who could not hide her joy in the face of various heart-warming display by traditional dancers, masquerades, age groups and particularly, members of the Anglican Church Irun Akoko, encouraged Mr. Oloketuyi to continually champion the cause of human and physical development of the town.

    On request by various speakers on the occasion, the Managing Director/ Chief Executive of WEMA bank promised to consider the extension of the ATM services to other parts of the town.  

     

  • Wema Bank, Shelter Afrique sign $10m facility

    Wema Bank, Shelter Afrique sign $10m facility

    Wema Bank Plc has secured a $10 million development finance loan to support the real estate sector for Shelter Afrique, a Pan-African development finance institution focused on financing affordable housing in Africa.

    Speaking at the signing ceremony in Lagos, yesterday, the bank’s Managing Director/CEO, Segun Oloketuyi, said the facility underscores the confidence of local and international partners in the lender’s capacity to handle such transactions.

    He said Wema Bank is deeply committed to supporting the growth of real estate and affordable housing financing in the country, by providing access to loans as well as other value-added services, including financial advisory from its expert team of corporate banking professionals.

    Oloketuyi said Wema Bank remains a premier financial institution and Nigeria’s longest surviving lender with branches spread across 125 locations, adding that the bank provides a host of corporate banking, retail banking, electronic banking, treasury and trade services to its customers.

    The Managing Director, Shelter Afrique, James Mugerma, said his organisation remained committed to providing affordable housing in Africa, stating that the partnership with the bank through the grant of this facility, is another step in the right direction.

    He said strong mechanisms have been put in place to ensure that the viable projects get access to this fund. He also praised the unique nature of this transaction which not only provides project funding but also includes mortgage financing.

  • Stakeholders laud Wema Bank’s forum

    Stakeholders laud Wema Bank’s forum

    FOR stakeholders who graced the Wema Bank’s trade forum, the bank deserves commendation.

    According to a cross-section of participants at the forum, the interface and discussion session were not only enriching but opened new vista of opportunities in the major commanding heights of the economy.

    Justifying the need for the event, Mr. Segun Oloketuyi, Managing Director of Wema Bank plc, said the trade forum was part of efforts aimed at sensitising stakeholders on developments within the sector as well as bring various parties – stakeholders and regulators together to discuss issues, challenges and chart a way forward for future development and policy formulation.

    Oloketuyi also said that as part of the ongoing positive transformation at Wema Bank, the bank was well poised to support businesses in the areas of trade and structured finance. He further disclosed that in recent times, Wema Bank has attracted over USD100million in lines of credit for foreign trade and another USD50million in structured finance lines from various institutions.

    The Deputy Comptroller of the Nigeria Customs Services, Aber T Benjamin spoke on the Pre-Arrival Assessment Report (PAAR) scheme, which was introduced by the Nigerian Customs Service in 2013 to fast-track the clearance of cargo and reduce costs at the nation’s ports. He also went ahead to introduce the new web-based trade portal of the Nigeria Customs Services to handle a customer’s end-to-end trade needs.

    Echoing similar sentiments, Onyinye Ahuchogu, Deputy Director, Trade & Exchange Dept, Central Bank of Nigeria commended Wema Bank for the strides it has made in the past four years.

    She also implored all stakeholders. She also spoke of the CBN’s partnership with other relevant institutions in making the international trade process simple and effective in Nigeria.

    One of the initiatives that came into being as a result of this partnership is the electronic form M.

    In recent times, Wema Bank has invested significantly in IT infrastructure to boost service delivery to its customers and provide excellent, value-adding services.  It was also disclosed at the forum that the bank has recently completed a web-based poertal to enable its customers conduct their international trade transactions from the comfort of their offices with minimal interactions with the branches.

    Established in 1945, Wema Bank is Nigeria’s longest surviving indigenous financial institution. The Bank offers a range of corporate, retail, SME, electronic banking and financial advisory services to its numerous customers.

     

  • WEMA Bank boosts Mega Trade Fair

    The Mega Trade Fair has received a boost from Wema Bank Plc, with the financial institutions being signed on as the Official Bank of the 10-day marketing event.

    According to the deal sealed between SNX Media, organizers of the Mega Trade Fair, and the bank, Wema Bank will sponsor the event, which runs from October 3rd through October 12th at the Oyo State Permanent Trade Fair Complex (EXPOYO), Samonda, Ibadan.

    The sponsorship grants Wema Bank exclusivity as a financial institution during the trade fair while the bank will brand the programme and have exclusive right over the “Making of 10,000 CEOs” component of the programme.

    Speaking during a courtesy visit to the Zonal office, the Zonal Manager said the bank was willing to partner with SNX Media in re-inventing EXPOYO, the venue of the trade fair and making Ibadan a true commercial hub of the inner South West.

    Speaking earlier, Mr. Delight Owoyemi, said the choice of Wema Bank as the official bank of the trade fair was strategic in view of the financial institution’s pre-eminence in helping businesses grow.

    In another development, Carmudi online automobile platform has been signed on as the Official Automobile Marketer for the trade fair.

    According to the deal, Carmudi will coordinate the automobile dealers and mobilise them to the event.

    The agreement between Carmudi and the Mega Trade Fair was signed by the public relations manager of Carmudi, Vivian Iweha and Mr Delight Owoyemi.

    WhatUpIbadan, another online platform, has been signed as the official Social Media Partner for the Mega Trade Fair.

  • Wema Bank records N1.7b profit

    Wema Bank records N1.7b profit

    Wema Bank Plc yesterday announced its half year 2014 unaudited financial results, with a 266 per cent increase in Profit Before Tax (PBT) to N1.7 billion.

    This, the lender said, demonstrates  the impact of efficiency gains it achieved in the last six months.

    Speaking in Lagos,  the bank’s Managing Director/CEO, Segun Oloketuyi,   said: “We are pleased to announce that WEMA Bank continuedto demonstrate strong improvements in profitability and balance sheet efficiency in the first half of 2014.

    Our Profit Before Tax leapt 266 per cent to N1.7 billion and the Bank’s Net Interest Margin has improved to 7.7 per cent reflecting a more efficient restructuring of our deposit mix in favour of cheaper funds. We continued the process of redeploying our resources into higher yielding assets while keeping a close eye on operating expenses. Loans and advances grew by 17 per cent from December 2013 whilst our cost of funds continues to reduce.

    He said the lender had secured trade lines from foreign correspondent banks and development finance institutions to support our trade finance, the real estate sector and SME lending.

    Oloketuyi said the Project LEAP, is the lender’s strategic transformation agenda, and has continued to provide it with efficiency gains.

    These, he added, have led to  improvements throughout the second half of the year putting the bank on course to produce better performance and commensurate returns to shareholders by the end of the year.

    “The goal is to continue our organic expansion programme and establish presence in areas that have significant growth potential, while making significant investments in alternative channels and diversifying the Bank’s product offerings.“