Wema Bank plc yesterday sought shareholders approval to enter into discussions, negotiations, and or agreement with any bank, financial or non-financial institution locally or internationally for the purpose of acquisition, merger, and equity investment in such bank or institution or undertake any business combination beneficial to the bank.
The bank also sought the approval of its shareholders to raise additional capital of such amount as shall be appropriate for the business of the bank either locally or internationally through the issuance of tenured bonds, irredeemable preference shares, notes, equity or debts (or a combination of both) loans in any currency, whether or not convertible to shares, or any other methods in one or more tranches and at such interest rates, pricing and terms to be determined by the directors as they deem appropriate.
The bank’s total assets grew by 4 percent to N397 billion at the end of the financial year 2015, from N382 billion in the preceding year.
The bank’s deposits also rose from N259 billion in 2014 to N285 billion in 2015 financial year ended December 31, 2015, representing 10 percent increase.
“Despite macroeconomic and regulatory volatilities, the bank’s loan portfolio stood at N186 billion in the year, an appreciable 25 percent growth over our performance in 2014,” Adeyinka Asekun, its chairman, said yesterday at the annual general meeting in Lagos.
According to Asekun, this reflects the simultaneous growth in interest and non-interest income in spite of the impact of higher Cash Reserve Requirement (CRR) on interest income for the year and net effect of lower Commission on Turnover (COT) charges on fees income.
He said the bank’s earning capacity remained robust during the year despite the constraints on asset growth in 2015 due to the sustained restrictive operating environment.
Gross earnings increased by 8 percent to N45.9 billion in 2015. The headline performance reflects the simultaneous growth in interest and non-interest income, which grew by 4.6 percent and 26 percent, respectively.
However, profit before tax marginally fell by 1.6 percent to N3 billion from N3.1 billion reported in the previous year, given the impact of the Treasury Single Account (TSA), depressed international crude market, ever thinning margins and rising costs of operations.
“As we go into 2016, I am confident that we are well positioned for better success. Our national authorisation will allow us to significantly scale up our operations across the country. However, our investment decisions will be long-term in order to achieve more efficient operations, which enable us deliver superior returns to you, our shareholders in 2016,” the chairman said.
