Wema Bank Addresses False Information Alleging Impending License Seizure and Bank Closure

Wema Bank Addresses False Information Alleging Impending License Seizure and Bank Closure

In recent weeks, a wave of misinformation has targeted the Nigerian financial services industry, specifically alleging that several commercial banks, including Wema Bank, are at risk of losing their banking licenses and being closed. We categorically confirm that this claim is false and contrary to the reality of Wema Bank's financial strength.

**The False Premise**

A statement, purportedly signed by the National Secretary of the Nigeria Union of Pensioners/Federal Civil Service Pensioners (NUP/FCSP), Abuja Branch, claimed that Wema Bank is among the banks slated for impending license seizure by the Central Bank of Nigeria (CBN). The statement advised pensioners and the general public to close their Wema Bank accounts as a precaution against the alleged closures.

**The Truth**

Wema Bank is in robust financial health and at no risk of license seizure or closure. Our financial performance underscores our strength and stability, as affirmed by stakeholders and auditors at our 2023 Annual General Meeting (AGM). Despite economic fluctuations in Nigeria, we are on course to meet the N200bn minimum capital requirement stipulated by the CBN for a commercial bank license with national authorization. Over the past months, we have raised an additional N40bn in fresh capital and are on track to meet the target within 18 months.

Our financial strength is demonstrated in our 2023 financial report and Q1 2023 financial results. Key highlights include:

- A 196% increase in Profit Before Tax (PBT) from N14.75bn to N43.59bn.

- A 220.4% increase in Profit After Tax (PAT) from N11.21bn to N33.66bn.

- A 70.63% increase in Gross Earnings from N132.30bn to N225.75bn.

- A 53.64% increase in Loans disbursed from N521.43bn to N801.10bn.

- A 26% increase in Capital Adequacy Ratio from N12.74bn to N16.04bn.

- A remarkable 220.53% increase in Earnings per share from N87.2 to N279.5.

Additionally, our Non-Performing Loan rate stands at 4.31%, one of the lowest in the industry. Our stable financial future has been verified by the Pan-African rating agency Agusto & Co, which recently upgraded our rating to Bbb+ with an ESG Score of 2 and a confirmation of a stable outlook. Despite financial headwinds, our Q1 2024 financial results indicate we are on track to surpass our 2023 results by the end of 2024.

Given our positive financial record and solid standing, the claims made are baseless and unfounded.

**Measures Taken**

We have petitioned security officials to investigate the Nigeria Union of Pensioners and will be taking legal action against the perpetrator(s) of this libelous statement.

Wema Bank remains committed to providing optimum returns for every stakeholder and will not condone the spread of false information that could cause public panic.

We assure our customers and stakeholders that Wema Bank is well-equipped to continue its operations as a commercial bank with national authorization. We will maintain our positive financial trends, expand our reach, and provide all our shareholders and stakeholders with optimum returns.