Wema Bank has concluded its share reconstruction exercise with the delisting of the old issued shares and relisting of the new post-reconstruction shares.
BizWatch Nigeria understands that the financial institution had secured shareholders and regulatory approvals to undertake a share reconstruction as part of a new recapitalisation programme.
Under the massive share reconstruction, the bank’s issued and fully paid shares were re-arranged from about 38.575 billion ordinary shares of 50 Kobo each to 12.858 billion ordinary shares of 50 Kobo each on the basis of an exchange ratio of one new post-reconstruction share for every three old pre-reconstruction shares held.
With the completion of the exchange process, the entire old share capital was delisted from the Nigerian Exchange (NGX) and the new paid-up share capital comprising 12.858 billion ordinary shares was listed at N2.76 per share.
The revaluation of the post-reconstruction shares, however, ensured that shareholders did not lose any capital value in the immediate post-reconstruction listing.
In a similar vein, the NGX also lifted the full suspension placed on the bank’s shares, allowing investors to trade on the newly listed shares.
Meanwhile, Wema Bank had announced a 108.3% growth in Profit Before Tax (PBT) in its full results for the year ended December 31, 2021.
Analyses of the results showed that gross earnings increased by 15.35% to N92.14 billion in the 2021 financial year from N79.88 billion in 2020.
Profit Before Tax (PBT) of N12.3 billion was achieved in the 2021 financial year, an increase of 108.26% year-on-year from N5.95 billion in 2020.
Profit After Tax (PAT) of N8.93 billion in the financial year 2021, representing an increase of 94.53% year-on-year from N4.59 billion in the financial year 2020.
Expressing his satisfaction at the results, Managing Director/CEO Wema Bank Plc, Ademola Adebise said: “I am delighted to announce our performance for the year ended 31st December 2021. The bank’s financial year 2021 results show robust growth in all key financial metrics despite the challenging macro-economic environment.
“Our year-end numbers highlight the strong growth trajectory of the financial institution. We comfortably crossed the N1 trillion mark in total assets, with a share of approximately 3% of industry deposits.”
