Wema Bank has been granted a national banking license by the Central Bank of Nigeria (CBN). The bank said in a statement in Lagos that the development would upgrade it from its current regional bank status.
Wema Bank downscaled to a regional bank in 2010 to operate only within core areas of business in South-South, South-West and FCT Abuja. CBN approved the new license because Wema Bank’s capital base currently stood at N43.8 billion in addition to meeting other regulatory requirements for the national banking license.
Managing Director, Mr 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 licensing regime and applied for a regional authorisation with a pledge to expand in the near future once the turnaround project was completed.”
Oleketuyi said that the bank’s transformation was implemented in three phases to stabilise the bank, prepare the building blocks for growth and to go for growth adding that the bank was now within the third phase of the transformation project. The new license has created opportunities to scale up growth as the bank would continue to strategically select its business locations across the country.
Oleketuyi also said that the bank would focus on areas where return on investment would be maximised and shareholder 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 dollars in Tier 2 capital and would commence a Tier 1 capital raise in Q1 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 authorization. Our priority remains delivering delightful and memorable service to our customers,” Oloketuyi said.
In 2012, Wema Bank applied for a regional license following the reforms that outlawed universal banking. CBN later announced new minimum capital requirements for a regional bank (N10 billion), national bank (N25 billion) and international bank (N50 billion). As regional bank, Wema Bank could only operate in a maximum of 12 of Nigeria 36 states (bordering two neighbouring geo-political zones) and Abuja.
