[dropcap]W[/dropcap]ema Bank has categorically denied allegations circulating on social media that it is at risk of losing its banking license and facing closure.
These claims, primarily spread through WhatsApp messages, have been identified as false and misleading, aiming to cause unnecessary panic within the Nigerian financial services sector.
The false information originates from a statement purportedly signed by the National Secretary of the Nigeria Union of Pensioners/Federal Civil Service Pensioners (NUP/FCSP), Abuja Branch.
This statement incorrectly named Wema Bank among several commercial banks allegedly facing imminent license revocation by the Central Bank of Nigeria (CBN).
It further advised pensioners and the general public to withdraw their funds from these banks and switch to others not mentioned in the statement, as a precaution against the supposed closures.
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Contrary to these unfounded claims, Wema Bank affirms its robust financial health and stability.
The bank’s financial performance has consistently demonstrated strength and resilience, as acknowledged by stakeholders and auditors at the 2023 Annual General Meeting (AGM). Despite economic fluctuations in Nigeria, Wema Bank has continued to thrive and meet regulatory requirements.
Wema Bank is actively progressing towards meeting the N200bn minimum capital requirement set by the CBN for a commercial bank license with national authorization.
Over the past few months, the bank has successfully raised an additional N40bn in fresh capital and is on track to meet the target within the next 18 months.
The bank’s financial robustness is evident in its 2023 financial report and Q1 2024 financial results. Key highlights from the FY 2023 audited financial results include:
- Profit Before Tax (PBT): Increased by 196% from N14.75bn to N43.59bn.
- Profit After Tax (PAT): Rose by 220.4% from N11.21bn to N33.66bn.
- Gross Earnings: Grew by 70.63% from N132.30bn to N225.75bn.
- Loans Disbursed: Increased by 53.64% from N521.43bn to N801.10bn.
- Capital Adequacy Ratio: Improved by 26% from N12.74bn to N16.04bn.
- Earnings per Share: Remarkably increased by 220.53% from N87.2 to N279.5.
- Non-Performing Loan Rate: Stands at 4.31%, one of the lowest in the industry.
Wema Bank’s solid financial future has been independently verified by the Pan-African rating agency Agusto & Co., which recently upgraded the bank’s rating to Bbb+ with an ESG Score of 2 and a stable outlook.
The Q1 2024 financial results further indicate that the bank is on track to meet or exceed its 2023 performance by the end of 2024.
In response to the false claims, Wema Bank has taken decisive action by petitioning security officials to question the NUP and initiating legal proceedings against those responsible for the libelous statements.
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