28 January 2011

Nigeria: Wema Lists 2.5 Billion Shares, Assures Shareholders

Managing Director and Chief Executive Officer of Wema Bank Plc, Mr. Segun Oleketuyi, Thursday assured that the bank's management will continue to do its best to ensure adequate returns for shareholders of the bank.

Oleketuyi, who made this known at the presentation of Wema's facts behind the placing and listing of 2.5 billion shares on the Nigerian Stock Exchange (NSE), stressed that the bank was well-positioned to take its rightful place in the banking industry.

He pointed out that the bank's decision to operate as a regional bank was a well-thought-out plan to ensure that its cost of doing business was reduced as less profitable branches will be eased out through the process.

"As you may be aware, 64 per cent of the Gross Domestic Product (GDP) of Nigeria comes from the area we have chosen to operate from. The step we have taken is a bold and courageous one because other banks are closing down branches in the areas we are moving away from," he said.

The bank, Oloketuyi added, was currently assessing its subsidiaries to ascertain the level of value they will add to it before deciding what to do with them.

He disclosed that the bank's first dividend post-banking sector reforms will be paid in 2012, adding that it was wise to reward its shareholders after waiting for seven years. "We are putting ourselves under immense challenge to ensure that we are able to pay dividend at that time."

The chief executive added that management has installed corporate governance structures and improved on its financial reporting.

He also said the bank has instituted a new service delivery model to aid improved customer service just as he added that the bank was up to date on all regulatory reports.

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