Wema Bank said it had swung to a pre-tax profit of M563 million in the first nine months of the year, compared with a loss of N1.785 billion it recorded in the same period of 2012.
The bank’s gross earning rose to N26.3 billion in the nine months to September 30, as against N21.6 billion it posted in the corresponding period of 2012.
Wema Bank gained 2.4 per cent to N1.28 per share on the Nigerian Stock Exchange yesterday. It has gained 140 per cent since the start of the year.
The bank realised a profit after tax of N479.2 million in the first nine months of 2013, compared to a loss after tax of N1.874 billion for the same period in 2012.
The results also showed that Wema Bank’s cash and balances with the Central Bank of Nigeria rose by N62.2 billion in the period under review, from N19.6 billion on December 31, 2012 to N87.8 billion on September 30, 2013.
The bank had at its Annual General Meeting in August this year, secured the approval of its shareholders to raise fresh capital to the tune of N40 billion.
The management of the bank also got an approval to raise the additional fund, which it said was needed to strengthen its balance sheet and expand its operations, from the capital market and from local, foreign and other investors through private placement, public or rights offer, or issuance of ordinary shares for such equity.
The Managing Director, Wema Bank, Mr. Segun Oloketuyi, had told the shareholders that the recapitalisation was targeted at improving and expanding the bank’s operations.
He gave them the assurance that the bank would continue to explore new frontiers in service delivery and settlement platforms.
He said, “We are particularly confident that the opportunities for growth and expansion within the industry remain strong even as we continue to target the unbanked and ever increasing retail sector of the economy.”
The bank was one of the lenders forced to recapitalise its operations by the CBN in the wake of a 2009 financial crisis that nearly sank it and eight other banks. It decided to meet tougher requirements by scaling down its business to become a regional bank in the 2009.