Nigeria’s Wema Bank targets one trillion Naira capital base

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The management of Wema Bank, which prescribed the payment of 3 kobo dividend per share for the first time in 15 years, announced it is targeting a trillion naira asset base over the next few years.

The bank also revealed it will expand its operations to other retail segments. Areas of interest to the bank include downstream oil and gas, specific agriculture value chain, and the small and medium enterprises (SMEs) space, where it plans to churn out tailor-made products to meet customer needs.

The Chief Executive Officer of Wema Bank, Ademola Adebise told journalists specifically that by 2020, the management hopes to double key indices including assets, deposits, profits and more.

Adebise noted that the bank may consider opportunities in the mergers and acquisition space (M&A), but refused to be drawn into specifics on whether there are already ongoing talks with prospects.

According to the Chief Executive Officer, “there are two ways to grow, you grow organically or you grow inorganically. What we are saying is that in the next two years, we want to double our indices through organic growth. Afterwards, if there are opportunities for M&A we will consider it”.

Adebise said “M&As are created by opportunities, it’s not that you will go and submit yourself to M&A. Today, we are in the neighbourhood of 400 billion naira in assets, so we will be shooting for about 800 billion naira by the time we double that. We want to get into the trillion naira mark in terms of asset base, and not that we will get there through M&A”.

The bank revealed that it plans to leverage on technology, notwithstanding the high cost, to achieve set targets, while also cutting operation costs.

Adebise said “we have key sectors of the economy that we have mapped out to achieve this growth. Also, we are trying to ensure that we have well-trained and well-motivated staff that will also be well-remunerated”.

 

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