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WEMA seeks to regain national bank status

By on March 18, 2013

Wema Bank Plc, has disclosed that it will raise a 35 billion naira ($220 mn) private share placement to some investors by the end of April and apply to regain national bank status.

Wema was one of the banks forced to recapitalise its operations by the Central Bank of Nigeria (CBN) in the wake of some financial woes that nearly sank it and eight other banks. It decided to meet tougher requirements by scaling down its business by becoming a regional bank in the 2009.

“We expect all arrangements to be concluded by the end of April 2013,” spokes person of Wema Bank, Kemi Aina told Reuters, adding that the new capital will enable them seek a national license.

Regional banks can only operate in 6-12 of Nigeria’s 36 states. They only need a 10 billion naira to meet the minimum capital base requirement, compared with 25 billion naira for national banks.

Wema Bank shares traded flat to close at 1.21 naira on Thursday, but they have risen 133 percent just this year, giving it a market capitalisation of about 15.13 billion naira ($95 mn).

In November, Wema Bank said it was at an advanced stage in raising capital and that it had secured commitments for 15 billion naira from core investors, which it aimed to finalise by the end of 2012