Wema Bank Decides to Maintain National Status, Plans Branch Expansion Into South East

Wema Bank Decides to Maintain National Status, Plans Branch Expansion Into South East

In a recent declaration made by the Managing Director/CEO of Wema Bank Plc, Moruf Oseni, it was confirmed that the bank has opted to retain its national banking license even beyond the 2026 recapitalization deadline. Addressing shareholders at the bank’s Annual General Meeting, Oseni emphasized the institution’s commitment to operating as a national bank and reiterated that there are no intentions to revert to a regional banking license.

Capital raise emerges as a critical focus for Wema Bank in its journey towards meeting the regulatory requirements. Oseni sought the support of shareholders, assuring them that the bank would make diligent efforts to secure the necessary funds for the capital raise. He stated, “Capital raise is a major one in front of us, but please be rest assured that your bank will do all we can to get the funds in. And in two years’ time, come 2026, Wema Bank will remain a national bank. We have no plans of going back to regional banking.”

Reflecting on the challenges faced during the 2008-2009 banking crisis, Wema Bank strategically transitioned from a regional banking license to a nationwide authorization in 2015, marking a significant milestone in its evolution.

Presently, Wema Bank’s paid-up share capital stands at approximately N15.1 billion, necessitating an additional infusion of about N184.1 billion to meet the mandated N200 billion minimum capital requirement for a national banking license. Notably, the bank recently raised around N40 billion through a rights issue in December 2023, which effectively reduces the required capital raise to N144.9 billion after accounting for this capital injection.

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Looking ahead, Wema Bank aims to raise N200 billion through a rights issue and other avenues, with plans to issue new 37.14 billion shares to bolster its financial position.

Expanding its footprint, Wema Bank has set its sights on increasing its branch network in the South-East region of Nigeria. Responding to queries regarding the scarcity of Wema Bank branches in the area, Oseni affirmed the bank’s commitment to establishing a more robust presence in the region. Describing the strategic appointment of Segun Opeke, a former Executive Director overseeing Polaris Bank’s Lagos operations, Oseni expressed confidence in the bank’s expansion efforts.

He highlighted, “We will situate branches where it is necessary, and where there is business. I have no doubt that there’s good business in the South-East. We have a new Executive Director in force right now.”

With 149 branches spread across 19 states and the FCT in Nigeria, Wema Bank currently lacks a presence in 17 states, including none in the South-East and limited coverage in the North-East. The bank’s established operations chiefly gravitate toward the South-West region, tracing back to its inception in 1945 as “Agbonmagbe Bank Limited,” primarily operating in areas now part of Ogun State.

The bank expanded its reach following acquisition by the Western Nigeria Marketing Board in 1969, leading to a rebranding to Wema Bank. Initially concentrating on the Western region, Wema Bank’s trajectory evolved with its listing on the Nigerian Stock Exchange in 1990. Although granted a universal banking license by the CBN in 2001, regulatory dynamics necessitated a shift back to a regional banking license in 2009.

As Wema Bank navigates the landscape of banking in Nigeria, its strategic decisions underscore a commitment to sustained growth, operational excellence, and nationwide presence. The forthcoming branch expansion into the South-East region heralds a new chapter in the bank’s quest for comprehensive coverage and enhanced service delivery across diverse geographical landscapes.

Stay tuned for more updates as Wema Bank continues its evolution and expansion into new territories, solidifying its position as a prominent player in Nigeria’s banking sector.

In this blog post, we have delved into the recent developments at Wema Bank, exploring its decision to maintain a national banking license, focus on capital raise, and plans for branch expansion into the South-East region. The post provides a detailed analysis of the bank’s trajectory, strategic decisions, and future outlook, catering to readers interested in the banking industry, regulatory compliance, and geographical expansion strategies.