Wema Bank Plc has said it is gearing up to raise N40 billion through right issue, to boost its existing N61bn capital base.
The bank disclosed this during an investors’ call session on the back of its half year result released to the Nigerian Exchange (NGX).
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The Deputy Managing Director of the bank, Moruf Oseni said the process is under way, “I believe that by the end of the year, we will bring in the funds.
“We are waiting for the formal signing off of the Securities and Exchange Commission (SEC) to conclude that. The rights issue will hit the market in September.”
Oseni said the capital raise will give the bank the expanded base to do more business.
Responding to the possibility of a Merger and Acquisition, Oseni said the bank is looking at all options.
“It is a possibility. Scale is key and we have a huge aspiration to scale on the shortest possible time.”
On the bank’s result, he said the bank has been able to achieve a loan book diversity as no sector has more than 20 percent of the total loan book.
The Loan to Deposit Ratio (LDR) was at 45%, below the regulatory limit of 65%.
Reacting to the shortfall, Oseni said: “We want to grow cautiously bearing in mind the mistakes of the past and capital constraints. Adding that the CRR/LDR regimes have slowed down on the back of managing supply of forex.”
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