Wema Bank shareholders Express Concern Over Share Reconstruction Plan

Wema Bank Head Office

As Wema Bank Plc board of directors awaits regulatory authorities approval for the planned reconstruction of its share capital and to raise additional capital that will position the bank for future growth, some shareholders has expressed concerns about the impacts it will have on their holdings.

The shareholders concerns are based on their previous experiences with quoted companies that embark on share reconstruction. While urging, the board to engage more stakeholders on options that will benefit existing and prospective investors.

Wema Bank efforts in reducing its level of Non Performing Loans (NPL) was commended by the shareholders, just as the management were advised to optimized the bank assets across the country and look into the issues of frauds complains by customers and some regulatory penalties that where avoidable.

Although, at the bank Annual General Meeting (AGM) in Lagos, the managing director Ademola Adebise, explained to few shareholders in attendance that the bank will continue to work on its processes through the use of robotic and automation to monitor transitions in all their platforms so that customers will not be victim of fraudsters.

Meanwhile, for the financial year ended December 31, 2020, shareholders received 4kobo dividend per ordinary share, amounting to N1,542,978,643,24, from the bank distributable reserve.

Highlight of the 2020 results shows that, gross earnings declined by 14,2% to N81 billion from N95 billion in the previous quarter. Profit before tax declined by 12% to N5.9 billion. Profit after tax declined by 12% to N4.6 billion, net assets grew by 7% from N55 billion to N59 billion.

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