The Nigerian financial services industry has been plagued by a surge of misinformation and propaganda, aiming to incite unrest among the public. Among these falsehoods is a WhatsApp message alleging that several commercial banks, including Wema Bank, are at risk of losing their banking licenses and facing closure.
Wema Bank has categorically refuted this claim, affirming the institution’s solid financial footing.
The Facts: Wema Bank’s Financial Stability
Contrary to the baseless rumors, Wema Bank remains in excellent financial health with no threat of license revocation or closure. The bank’s recent financial performance underscores its strength and stability. This was validated by stakeholders and auditors during the 2023 Annual General Meeting (AGM), despite the economic fluctuations in Nigeria. Wema Bank is also on track to meet the N200 billion minimum capital requirement set by the Central Bank of Nigeria for a commercial bank license with national authorization. Over the past few months, the bank has successfully raised an additional N40 billion in fresh capital and is poised to meet the target within the next 18 months.
Impressive Financial Performance
Wema Bank’s financial robustness is evident from its 2023 financial report and Q1 2024 results. Highlights from the FY 2023 Audited financial results include:
– A 196% increase in Profit Before Tax (PBT), from N14.75 billion to N43.59 billion.
– A 220.4% rise in Profit After Tax (PAT), from N11.21 billion to N33.66 billion.
– A 70.63% increase in Gross Earnings, from N132.30 billion to N225.75 billion.
– A 53.64% surge in Loans disbursed, from N521.43 billion to N801.10 billion.
– A 26% increase in Capital Adequacy Ratio, from N12.74 billion to N16.04 billion.
– A remarkable 220.53% jump in Earnings per Share, from N87.2 to N279.5.
Moreover, Wema Bank boasts a Non-Performing Loan rate of 4.31%, one of the lowest in the industry. The bank’s stable financial future has been further validated by Pan-African rating agency Agusto & Co, which recently upgraded Wema Bank’s rating to Bbb+ with an ESG Score of 2, confirming a stable outlook.
Despite facing financial headwinds, Wema Bank’s Q1 2024 results indicate the bank is on track to equal or surpass its 2023 achievements by the end of 2024.
Measures Against False Information
In response to these unfounded rumors, Wema Bank has taken decisive action by petitioning security officials to investigate and question the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) officials allegedly involved in spreading the false information. The bank is also pursuing legal action against those responsible for the libelous statements.
Wema Bank remains steadfast in its commitment to providing optimal returns for its stakeholders and will not tolerate the dissemination of false information that could potentially cause panic. As the bank takes stringent measures to hold the creators of these allegations accountable, it reassures customers and stakeholders of its continued strength and capacity to serve as a reliable commercial bank with national authorization.
The bank is dedicated to maintaining its positive financial trajectory and expanding its reach, ensuring optimum returns for shareholders and stakeholders alike.
