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Wema Bank raises N40b new capital

By The Rainbow
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Wema Bank Plc, successfully raised N40 billion from the capital market, the bank's Managing Director, Mr Segun Oloketuyi, has sid.

Oloketuyi said in a statement in Lagos that the N40billion capital inflow was successfully realised from a mixture of private and institutional investors.

According to him,  the recapitalisation exercise is currently awaiting final approval by the regulators.

The managing director said that the capital raising would further bolster the bank's return to profitability and top performance in 2013 financial year.

The bank also announced its audited results for the financial year ended December 31, 2012 and also, its half year unaudited results for the period ended June 30, 2013. The Bank's results show an 18.3% increase in total deposits to N174.3billion in 2012 and a return to profitability in its 2013 half year results.

Oloketuyi said, 'Wema Bank has returned to profitability and with the new capital inflow, the bank is expected to meet its 2013 performance targets.''

Commenting on the results, Segun Oloketuyi, MD/CEO of Wema Bank stated he is pleased with the bank's performance and return to profitability as at June, 2013 which is in line with the Bank's projection. He further stated that despite the capital constraints experienced in 2012, Wema Bankwas able to record considerable growth in Total Deposits and Net Interest Income, while capitalizing on existing business relationships to generate impressive growth in Fees and Commission Income.

Oloketuyi also stated that while the Bank closed with a loss position in 2012 due to additional impairment charges on legacy loans, the books are now clean and its Non-Performing Loans ratio had dropped to 3.39% by June 30, 2013. Wema Bank has returned to profitability and with the new capital inflow, the Bank is expected to meet its 2013 performance targets.

Established in 1945, Wema Bank currently offers a range of products and services in corporate banking, retail banking, e-banking, Trade services, treasury, SME banking and financial advisory to its numerous customers.