MIRA
INFORM REPORT
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Report Date : |
09.05.2007 |
IDENTIFICATION DETAILS
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Name : |
WEMA BANK LIMITED |
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Registered Office : |
27, |
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Country : |
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Date of Incorporation : |
2nd May 1945 |
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Com. Reg. No.: |
RC: 575 |
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Legal Form : |
Public Limited Liability Company (PLC) |
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Line of Business : |
Subject is into universal banking with business focus primarily in Commercial Banking, Corporate Finance, Institutional Banking, Public Sector, Retail Banking, Trade Finance, Treasury, Western Union Money Transfer, CAPOF, HIFA, WAAS, Wema Bounty Account, Wema Inland Funds Transfer, Wema Open Plan Account and Wema Treasure Account. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
IDENTIFICATION
COMPANY NAME: WEMA BANK PLC
REGISTERED NAME: WEMA BANK LIMITED
PREVIOUS NAME: AGBONMAGBE BANK LIMITED
REGISTERED ADDRESS: 27,
HEAD OFFICE ADDRESS:
TELEPHONE(S): 234-1-2668105, 2668043, 2646011, 2667216, 2668609
FAX: 234-1-2668303
E-MAIL: info@wemabank.com
WEBSITE: www.wemabank.com
POSTAL ADDRESS: P.M.B. 12862,
Subject is into universal banking with business focus primarily in Commercial Banking, Corporate Finance, Institutional Banking, Public Sector, Retail Banking, Trade Finance, Treasury, Western Union Money Transfer, CAPOF, HIFA, WAAS, Wema Bounty Account, Wema Inland Funds Transfer, Wema Open Plan Account and Wema Treasure Account.
Subject also engaged in E-BANKING: E.g, Internet/PC Banking, Mobile Banking, Telephone Banking, Wema Virtual Airtime, Wema Valu Card and ATM Self-Service Solution.
In
Currency: All monetary values in this report are in Nigerian
Naira, the local currency, except otherwise stated. The exchange rate is N130 to 1
SUMMARY
NATURE OF PREMISES: Owned, office space at head office occupying approximately 2500 square
metres.
DATE INCORPORATED: 2nd May 1945
YEAR BEGAN OPERATION: 1945
LEGAL FORM: Public Limited Liability Company (PLC)
REGISTRATION NO: RC: 575
SHARE CAPITAL: 15,000 .00 Pounds
ALLOTTED SHARE CAPITAL: 7, 870 .00 Pounds
PAID-UP CAPITAL 7, 870 .00 Pounds
AUDITORS: KPMG Professional Services
SOLICITORS: Giwa-Osagie & Co., Odujinrin & Adefulu & Co.
COMPANY SECRETARY: Mr. Abiodun S. Ogunlade
STAFF STRENGHT: 1, 729 (as at October 2006)
SHAREHOLDERS/DIRECTORS
Odu’a Investment Company Limited
Alhaji O Mohammed
Alhaji A. M. Adeleke
Mr. A. J. Adegbite
Alhaji Y. O. Afolabi
Senator O. S. Meroyi
Mr. A. Olaiya
Mr. J. A. Olofintuyi
Mr. J. A. Omoyemi
Mr. Y. A. Adewusi
Dr. Lekan Are
Chief Folorunso Oke.
PREVIOUS DIRECTORS
Alhaji O Mohammed
Alhaji A. M. Adeleke
Mr. A. J. Adegbite
Alhaji Y. O. Afolabi
Senator O. S. Meroyi
Mr. A. Olaiya
Mr. J. A. Olofintuyi
Mr. J. A. Omoyemi
Mr. Y. A. Adewusi
Dr. Lekan Are
Chief Folorunso Oke.
Olaseni S. A. Bello
Samuel I. Adegbite
Ademola Ariyo
Mathew A. Okupe (JRN)
Michael Sunday Arigun
Adebotun Adedeji K. Degun
Ebenezer O. Elemide
Ezekiel Akinyele Ogunleye
William Babade Ayeni (British)
Kuforiji Rotimi
Yekini A. Akande (Alhaji)
Tokunbo Ajasin
Dosumu Ibrahim Adedeji
Alade Musiliu Adeleke
Babatunde O. Lemo
Isaac Adewale Olayanju
Yakubu O. Afolabi
Rufus Giwa (Chief)
Ebenezer F. Oke (Chief)
Ishola Filani
Olusani Otudeko
Adebayo Gbadegesin
INCREASE IN SHARE
CAPITAL
Subject share capital was increased from 7, 870 .00 Pounds to N14, 000, 000, 000.00. In accordance with Central Bank directives on Banks recapitalization, the Bank has recapitalized to over N24 Billion Naira.
MANAGEMENT PROFILE
Alhaji O Mohammed Chairman
Mr. Adebisi Omoyeni Managing Director/ Chief Executive Officer
Mr. A. J. Adegbite Executive Director
Alhaji Y. O. Afolabi Executive Director
Senator O. S. Meroyi Executive Director
Mr. A. Olaiya Executive Director
Mr. J. A. Olofintuyi Executive Director
Mr. J. A. Omoyemi Executive Director
Mr. Y. A. Adewusi Executive Director
Dr. Lekan Are Executive Director
Chief Folorunso Oke. Executive Director
Alhaji Nurudeen Adeyemo Fagbenro Executive
Director, Institutional Banking
Mr. James Obasa Lagos/Regional Office
Mr. Babatope S. Adebayo Retail Banking Group
SUBSIDIARY COMPANIES
Wema Registrar Limited;
Wema Trustees Limited;
Wema Homes Limited;
Wema Insurance Brokers Ltd; and
Wema Venture Limited
BRANCHES
Wema Bank Plc’s head office is located at
BANKER
Central Bank of
Abuja-Nigeria
CORRESPONDENT BANKS
Standard Chartered Bank
Institutional banking
1,
Lloyds TSB Bank Plc
Two Brindleyplace
Royal Bank of Scotland
Plc
(Formerly National Westminister Bank)
Global Banking Services
Water
138-142, Holborn
HSBC Bank Plc
Houghton, 2198
Citibank, N.A.
111, Wall Street,
19th Floor/Zone 1
ANZ Banking Group Ltd
Minerva House
http://www.anz.com
SWIFT CODE: CITIGB2L
PAYMENT REFERENCE
Subject has both local and foreign references
PRODUCT DESCRIPTION
Commercial Banking, Corporate Finance, Institutional Banking, Public Sector, Retail Banking, Trade Finance, Treasury, Western Union Money Transfer, CAPOF, HIFA, WAAS, Wema Bounty Account, Wema Inland Funds Transfer, Wema Open Plan Account and Wema Treasure Account, E-BANKING: E.g., Internet/PC Banking, Mobile Banking, Telephone Banking, Wema Virtual Airtime, Wema Valu Card and ATM Self-Service Solution.
PERFORMANCE RANKING
* Quality of Management: EXCELLENT
* Ethics & Integrity: VERY GOOD
* Ownership Structure: EXCELLENT
OPERATIONS
Subject is into universal banking with business focus primarily in Commercial Banking, Corporate Finance, Institutional Banking, Public Sector, Retail Banking, Trade Finance, Treasury, Western Union Money Transfer, CAPOF, HIFA, WAAS, Wema Bounty Account, Wema Inland Funds Transfer, Wema Open Plan Account and Wema Treasure Account.
Subject also engaged in E-BANKING: E.g, Internet/PC Banking, Mobile Banking, Telephone Banking, Wema Virtual Airtime, Wema Valu Card and ATM Self-Service Solution.
Subject is located in a central business area at
BACKGROUND
Wema Bank Plc was incorporated in May 1945 as a private limited liability company and commenced business operations as a commercial bank in the same year. The Bank was converted to a public limited liability company in April 1987 and was subsequently listed on the floor of the Nigerian Stock Exchange in January 1990.
On February 5, 2001, the Central Bank of
The Bank has witnessed tremendous growth and development in branch network, quality of service delivery and overall financial performance in the last two decades. They have embarked on a process of corporate transformation that has resulted in the emergence of a restructured Wema Bank Plc, strategically positioned to fully optimize opportunities in the industry.
Wema Bank Plc is adequately capitalized, our shareholders’ funds is in excess of N8 billion and our asset base is N71.4 billion. Presently, Odu’a Investment Company Limited holds 40% equity stake in the Bank, while private individual investors and staff of the Bank own the remaining 60%.
The authorized share capital of the Bank is N7, 000,000,000.00 divided into 14,000,000,000 ordinary shares of 50kobo each.
With banking operations spanning sixty years, Wema Bank Plc is
reputed to be the longest surviving indigenous bank in
Wema Bank Plc, formerly known as Agbonmagbe Bank Limited was incorporated on May 2, 1945 as a private limited liability commercial banking company with an authorized share capital of 15,000.00 pounds fully paid, the Bank was jointly owned by Chief M. A. Okupe and Mr. A. A. Alade.
In a bid to strengthen the capital base of the Bank, the government of the defunct Western Region of Nigeria acquired substantial interest in the Bank and the name was subsequently changed from Agbonmagbe to Wema Bank Limited on 1st of June 1970 to reflect the new ownership structure of the Bank.
Wema Bank Plc announced also a bonus issue of one new share for every eight shares already held for the year ended March 31, 2005. The bank, which is consolidating with National Bank of Nigeria Limited and Leadbank Plc made its audited result available to the Nigerian Stock Exchange and was obtained on Friday.
A breakdown of the performance of the bank showed that its gross earnings rose
by N2.4billion or 19 per cent from N12.9billion in 2004 to N15.3billion in
2005. However, net profit dipped 12 per cent or N122.8million from
N967.1million to N844.3million in 2005.
EXPANSION PLAN
The company has taken a giant step into the future by working to reclaim a top five position in the banking industry within the next couple of years. Towards this end, they have embarked on a process of corporate transformation, which has resulted in the emergence of a restructured Wema Bank Plc, strategically positioned to fully optimize opportunities in the market place.
PRINCIPAL ANTECEDENT
1. NAME: ALHAJI OLAPADE MOHAMMED
POSITION: Chairman
PROFESSION: Banker
DATE OF BIRTH: Nil
NATIONALITY: Nigerian
EDUCATION & QUALIFICATION:
He is a 1973 graduate of the prestigious
WORK HISTORY:
Alhaji Mohammed joined the service of the Central Bank of Nigeria (CBN) in 1976 as a Senior Supervisor, Expenditure Duties and rose through dint of hard work to become the apex bank’s Zonal Controller, North East sub-region before retiring in October, 2002.
While in the service of the CBN, the new Chairman held several other important positions.
As an Assistant Manager at the CBN, he was appointed secretary, Major Contracts Tender Board (1977) and was later to be saddled with the Capital Projects Assessments duties, an assignment he performed so well that he was elevated to the position of a Manager in 1983.
Between 1984 and 1986, he worked in the Personnel Department and was in charge of Performance Appraisal duties, Manpower Planning Inputs Schedules and Transfer schedules.
His outstanding qualities soon stood him out as he was promoted to senior Manager in 1986 and Assistant Director, Personnel Department in 1990 which empowered him to carry out duties like determining career path for all staff, performance appraisal administration, facilitating yearly lectures for newly promoted/appointed staff and guidance/counseling, among others.
Alhaji Mohammed was appointed Assistant Zonal Controller in 1995, Branch Zonal Office (North-East Region) and was in-charge of the supervision of banking operational matters of all branches in the zone.
He was promoted Deputy Director of CBN in 1998 and some of his duties included monitoring of audit reports of all branches and currency center within the zone. He was also chairman, zonal disciplinary committee, chairman contracts tenders’ board.
Alhaji Mohammed was appointed Zonal Controller, North East sub-region in 2001 in-charge of the general supervision of banking/operational matters and Branch Controllers within the zone and, was responsible for all administrative/personnel matters of the zone. He also related with various state governments within the North-East sub-region on operational matters in that capacity until his retirement from the civil service in October 2002.
He attended various courses overseas and within
Alhaji Mohammed is an Associate Member, Chartered Institute of Bankers of Nigeria (CIBN) and Nigeria Institute of Management.
He is also an Associate Member of the reputable Chartered
Institute of Bankers,
He is happily married with children.
2. NAME: Alhaji Nurudeen Adeyemo Fagbenro
POSITION: Executive
Director, Institutional Banking
PROFESSION: Banker
DATE OF BIRTH: February 13th 1960
NATIONALITY: Nigerian
EDUCATION &
QUALIFICATION: Alhaji Fagbenro graduated in 1985 with B.Sc
(Accounting) in the Second Class Upper Division, from
WORK HISTORY:
Until his new appointment, Alhaji Fagbenro co-coordinated the critical institutional integration of National Bank of Nigeria Ltd and Wema and Plc concluded in March 2006. Fagbenro has held various strategic positions in the Bank amongst which are Head of International banking Division from 1996 to 2001 while between 2001 and 2002 he was the Chief Inspector of the Bank; and was Assistant General Manager charged in 2002/2003 for identification/training of key management staff to take charge of future management of International Operations. He was promoted as Deputy General Manager in 2003 and drafted to manage Commercial & Telecommunications and Institutional Banking groups.
As part of the long-standing policy of Wema Bank to add value
to its human resources, Alhaji Fagbenro has been exposed to various capacity
building courses and programmes in
Training Course for International Bankers by National
Westminster Bank in
He enjoys playing chess, table-tennis, and badminton. He is a
respected member of the prestigious Ikoyi.
3. NAME: Mr. Toye Olofintuyi
POSITION: Executive
Director
PROFESSION: teacher,
journalist and Lawyer
DATE OF BIRTH: Nil
NATIONALITY: Nigerian
EDUCATION
& QUALIFICATION: He attended St
Mathias College Akure (1961 – 1962),
WORK HISTORY: He worked as a teacher between 1963 and 1970 before going into active journalism (1971 – 1992).
He was the Director-General, Ondo State Ministry of
Information, Sports and Culture (Jan-Dec. 1992); Director General/Chief Executive,
Ondo Bureau of Information and Culture (Jan-Oct 1993); Commissioner for Lands
and Housing,
4. NAME: Mr. Adebisi Omoyeni
POSITION: Managing
Director/Chief Executive Officer
PROFESSION: Banking
and Finance
DATE OF BIRTH: January 16, 1958
NATIONALITY: Nigerian
EDUCATION &
QUALIFICATION: He graduated from the
WORK HISTORY: The new Managing Director/Chief Executive Officer joined the Bank in March, 1987 as an Assistant Manager. Omoyeni, had worked in various capacities and held various portfolios within the Bank including the following: Assistant General Manager, Insurance, Pension and Registrar Services, General Manager (Administration), Executive Director (Resource Management & Services), Executive Director (Investment & International Banking), Executive Director (Investment Banking & Public Sector) and Executive Director (Retail Banking), a position he held till October 4, 2005.
On October 4, 2005, Mr. Omoyeni, (on leave of absence from the
Bank) was appointed the Deputy Governor of
Officer of the Bank. Prior to joining Wema Bank, Mr. Omoyeni worked in various organisations including the Nigerian National Petroleum Corporation (NNPC) (1983-1984), Ibadan Polytechnic (1985), Hogg Robinson Nigeria (1985), as well as Continental Loss Adjusters (1986-1987). Mr. Omoyeni is on the board of several companies including Wema Securities & Finance Plc, Oasis Insurance Company Plc, Wema Trustees, InterSwitch Limited and ATM Consortium Limited among others. He is married with children.
5. NAME: Mr. Olaiya Adelodun
POSITION: Executive
Director
PROFESSION: Computer and Human Resources
Consultant
DATE OF BIRTH: Nil
NATIONALITY: Nigerian
EDUCATION & QUALIFICATION: He is a 1968 holder of Bachelor of Science degree of the prestigious University of Ibadan (UI). He also holds a postgraduate diploma (PGD) in Industrial Relations and Personnel Management of the London School of Economics and Political Science where he passed out in 1973.
WORK HISTORY: Mr. Olaiya whose working experience spanned about 25 years, has worked in various capacities in many companies within and outside Nigeria including National Bank of Nigeria (1970 - 1971); J. Bibby & Sons Ltd, Liverpool (1972); Hoover (UK) Ltd, London 1973; Philip (UK) Group Limited, Quartar, Croydon (1973); Nigerian National Oil Corporation (NNOC) (1974 – 1977); Nigerian National Petroleum Corporation (NNPC) Lagos (1977 – 1997); and OPEC Secretarial, Vienna Australia (1978 – 1985); NNPC Falomo (1985 – 1997).
Within this period, he served on the boards of different companies, pioneer the formation, re-engineering and re-absorption of many companies; managed the recruitment of over 3000 staff in a growing environment and served as Head of Personnel in a multi-cultural international organization with 28 different nationalities. He was also the last Executive Director of the Engineering Joint Venture Company between NNPC and Bochtel of United States, one of the ten largest engineering companies in the world.
6. NAME: Mr. Yinka Adegbite
POSITION: Executive
Director
PROFESSION: Accounting
and Banking
DATE OF BIRTH: Nil
NATIONALITY: Nigerian
EDUCATION &
QUALIFICATION: A product of
WORK HISTORY: He qualified as Associate Member, Chartered
Association of Certified Accountants in December, 1992 as well as Associate
Member of Institute of Chartered Accountants of Nigeria (ICAN). With a flare
for Accounts software and spreadsheet, Mr. Adegbite started his working career
with Rims Securities Ltd. as an Executive Officer in 1993 and later joined
Oasis Group, an Investment Holding Company, as Executive Director, Operation in
1994. Mr. Adegbite, aside from being grounded in Stock dealings, holds
directorship of Access Bank Plc,
7. NAME: Senator Omololu Meroyi
POSITION: Executive Director
PROFESSION: Economist
DATE OF BIRTH: Nil
NATIONALITY: Nigerian
EDUCATION &
QUALIFICATION: He attended the
legendary
WORK HISTORY: Senator Meroyi worked as a labour officer between 1974 and 1978. He also worked with Food Specialties Nigeria Limited (1978 - 1980); Roro Technical Company Limited (1980 – 1982) and was chairman, Araromi Rubber Estate Limited, (a subsidiary of Michelin Tyres Nigeria Limited) 1995 – 1997.
He traded the murky waters of
PHYSICAL VISIT
Visits were made to the followings:
COMPANY PREMISES
CORPORATE AFFAIRS COMMISSION.
FINANCES
Subject audited accounts were not available as at the time of compiling this report. Therefore, its present financial position could not be ascertained. However, as at 31st March 2005, subject Gross Earnings is put at N15, 287, 866, 000.00
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RISK RATING ASSESSMENT: |
Appears to have a sound financial base with a strong capability to meet trading commitments; liquidity looks healthy |
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CREDIT LINE AMOUNT: |
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CREDIT LINE OPINION: |
Transaction with subject is considered to be normal trade
risk |
DIRECT INTERVIEW
NAME: Mr. Bisi Onanuga
POSITION: Head, Corporate Communications
He confirmed details in this
report. He also promised to provide more details by next week.
Please expect additional
information.
INDUSTRIAL OVERVIEW/
OPERATING
ENVIRONMENT
The year 2005 was remarkable in the history of the Nigerian Banking industry. The consolidation exercise initiated by the Central Bank of Nigeria (CBN) on 16th July 2004 came to a fruition on December 31st 2005 with 14 banks unable to meet the =N=25billion recapitalization requirement. The apex bank revoked the licenses of the 14 banks. Meanwhile, the 25 banks that successfully met the =N=25billion minimum capital requirement represent 93.5% of the total deposits of the 89 banks that existed in the country pre-consolidation. In the process, about =N=406 billion was raised from the capital market while an inflow of US$ 652 million was generated from outside the economy.
CMT REPORT
(Corruption, Money
Laundering &
Terrorism)
Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs administration and Control (NAFDAC), Independent Corrupt Practices and Other Related Offences Commission (ICPC) Etc.
No negative information on subject from the above agencies as at the time of compiling this report.
COMPANY LOCATION
The company is located at
OFFICIAL REMARKS
Having carried out all necessary research on subjects, our
investigations revealed that, the company, Wema Bank Plc is duly registered in Nigeria, with a
registered address, 27, Nnamdi Azikiwe Street,
Tinubu, Lagos While the operational office address is at Wema Tower, 54,
Marina, Lagos-Island, Lagos-Nigeria.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)