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AGUSTO & CO UPGRADES WEMA BANK’S RATING TO Bbb+ WITH ESG SCORE OF 2

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…Confirms Stable Financial Outlook for the Bank

Following its strong 2023 financial performance, Wema Bank, Nigeria’s foremost innovative bank and pioneer of Africa’s first fully digital bank, ALAT, has received an upgraded rating from Agusto & Co, validating the Bank as Bbb+ rated with an ESG Score of 2 and confirming a stable outlook for the Bank.

Agusto & Co is a Pan-African credit rating agency and leading provider of industry research and knowledge in Nigeria and Sub-Saharan Africa.

By upgrading Wema Bank’s rating from BBB to BBB+, Agusto has confirmed that Wema Bank is of stable financial standing and more equipped than ever to keep fulfilling its duties as a commercial bank with National authorization.

This development is unsurprising as Wema Bank’s financial strength is reflected in the Bank’s FY 2023 Audited Financial Report. Among the outstanding results achieved by Wema Bank was a 196% increase in Profit Before Tax (PBT) from N14.75bn to N43.59bn translating to higher pre-tax return on average equity (ROE) and pre-tax return on average assets (ROA) from 21.5% to 43.9% and 1% to 2.1% respectively. The Bank also recorded a 220.4% increase in Profit After Tax (PAT) from N11.21bn to N33.66bn, 70.63% increase in Gross Earnings from N132.30bn to N225.75, 53.64% increase in Loans disbursed from N521.43bn to N801.10bn, a reduction in cost-to-income ratio (CIR) from 80.1% to 64.4% due to significant earnings growth despite economic fluctuations and 220.53% increase in Earnings per share from N87.2 to N279.5, among other indices.

According to Agusto & Co, “The upgrade of Wema Bank’s rating to Bbb+ is underpinned by improved profitability despite macroeconomic headwinds, lower impaired loan ratio, better deposit mix, strong shareholders’ support as reflected in the successful rights issue exercise and perpetual bond issuance. We have also attached an ESG score of ‘2’, reflecting our view that environmental, social, and governance issues have a minimal impact on Wema Bank’s rating”.

Affirming the Bank’s commitment to providing stakeholders with optimum returns, Moruf Oseni, Wema Bank’s MD/CEO, expressed the Bank’s gratitude to Agusto & Co for acknowledging the strong progress made by the Bank. “Wema Bank is on a journey to the top and we are driven by a commitment to delivering exceptional value, exceeding expectations, and providing optimum returns to every stakeholder—shareholders, customers, employees, and partners alike. It is this commitment that has reflected positively in our numbers and will propel our growth over the next decade”.

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Banking and Finance

Cool Financial Sues FCMB Over N150 Million Withdrawal From Frozen Account

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Cool Financial Services, a Lagos State-based finance house, has sued First City Monument Bank (FCMB) for allowing Goewe and Sons Ltd., one of its borrowers, to withdraw a N150 million loan sum from an account with an active freezing instruction.Goewe and Sons Ltd. is a merchandise company owned by Ewere Godwin Orobosa. In July 2023, the company first approached the finance house for a N100 million loan at a 3.5% interest rate for a duration of 30 days.Again, in September 2023, the company obtained an additional loan of N50 million at an interest rate of 1.5% for a month, bringing the entire loan to N150 million.The borrower intended to pursue a contract and needed to have the said amount in its bank account, but the loan was not to be used to execute the potential contract.Both Goewe and Sons Ltd. and Cool Financial Services then instructed FCMB to freeze the loan account so that the loan sum could remain untouched for the period of the transaction, according to a loan agreement dated September 18, 2023.The borrower had earlier written to the bank to alter its account mandate through a board resolution dated September 15, 2023. The borrower appointed Ewere-Egharevba Orobosa, representing the borrower, and Roseline Anibueze, representing the lender, as ‘Category A’ signatories to the account.The directive further specifically stated that the representative of the lender shall have the power to authorise any withdrawal below N150 million from the account while any withdrawal exceeding that amount shall be jointly authorised by the two signatories.“Those measures were put in place to guarantee compliance with the terms and conditions of the loan facility,” Oluwafemi Adediran, head of the legal unit at the finance house, told FIJ on Wednesday.After the loan duration expired, the lender wanted to withdraw it. So, on October 23, 2023, the finance house presented a transfer cheque at the Chevron branch of FCMB in Lagos confident that the money was intact. But the cheque was dishonoured and the bank revealed that the borrower had already withdrawn the loan.“Upon our investigations and findings, we became aware albeit shocked that you disregarded the lien on the account and processed a loan of N150,000,000 (one hundred and fifty million naira) on the back of the restricted facility meant only as proof of funds. What is more, we are alarmed not only by this act but by the temerity and obviously premeditated criminal falsification of the signatures of the representatives of our client as signatory ‘A’ before the consummation of the unauthorised mindless transaction,” Justice John, a legal practitioner, wrote to a business manager at Sanusi Fafunwa Branch of FCMB and the FCMB managing director on behalf of the lender on September 26, 2023 and October 26 respectively.On October 25, 2023, the lender visited the Sanusi Fafunwa Branch. There, Chukwuma Chukwuka and Isiaq Babatunde, both officials of the bank, appealed for a cure period of 72 hours to remedy the situation. An additional 48 hours was given to the bank to sort out the issue internally, according to a November 2023 court filing signed by Anibueze.Those cure periods were not adhered to. On October 31, FCMB through Tosin Talabi and Akin Akintola, both legal counsel and head of litigation for the bank, said it had commenced an investigation into the issue.“In accordance with our internal procedure, we have commenced investigations into the issues raised in your letter under reference and shall revert to you shortly with the bank’s position once the investigation (sic) is concluded,” the legal counsel wrote.“At the time we went to the bank to verify how the money was withdrawn, we found out that the freezing instruction was still active on the account. We observed that our director’s signature was forged to make the withdrawal. The question the bank has not answered is, ‘How was it possible to withdraw money from an account with an active no-withdraw order?’”More than a year after the letter referenced above, the bank was yet to reveal the findings of its investigation.SEEKING REDRESS THROUGH COURTIn November 2023, the lender filed a suit marked FHC/2377/2023 before a Federal High Court in Lagos seeking to recover losses it had incurred as a result of what it considered “a criminal conspiracy”.Sued in the lawsuit were FCMB as the first defendant, the borrower as the second defendant and the Central Bank of Nigeria (CBN), FCMB’s regulator, as the third defendant.“A declaration that the action of the 1st defendant amounts to breach of fiduciary duties owed to the plaintiff,” the first leg of the relief read.“An order directing the 1st defendant to immediately pay the plaintiff its capital in the sum of N150,000,000 (One Hundred and Fifty Million Naira Only) with (an) interest rate of 21% per annum or at the prevailing Central Bank of Nigeria’s rate from October 23, 2023, when the plaintiff’s transfer request was dishonoured by the 1st defendant despite the plaintiff’s account being funded; and without any satisfactory explanation by the 1st defendant to the plaintiff.“General damages in the sum of N250,000,000 (Two Hundred and Fifty Million Naira Only) against the 1st defendant for the economic loss, embarrassment and financial exposures suffered by the plaintiff as a result of the devastating action of the 1st defendant, bearing in mind that the plaintiff is in the business of loans and SMEs financing.“An order of this honourable court directing the 1st defendant to pay interest on the judgment sums at the rate of 21% per annum or at the prevailing Central Bank of Nigeria’s rate, from the commencement of this suit till the date of judgment, and 14% per annum from the delivery of judgment till liquidation of the entire judgment sum to the plaintiff.“An order of this honourable court directing the 3rd defendant to enforce compliance of the 1st defendant by drawing from the deposits of the 1st defendant in its care to settle all monetary sums and liabilities thereof by the 1st defendant herein in the event that the 1st defendant is unable to pay same.“The cost of this action in the sum of N5,000,000 (Five Million Naira).”The court has not fixed a hearing date for the case. At press time, FIJ learnt that FCMB had not filed any response to the lender’s filings.FCMB had not responded to a request for comments at press time. On January 15, Rafiu Muhammed, a corporate affairs and media management officer at the bank, acknowledged FIJ’s email on the phone and promised that the bank would investigate and respond soon.When asked to be specific when the bank would respond, Muhammed said, “I don’t want to give you an unrealistic time. But we will investigate and respond very soon.”FIJ sent him a reminder on January 24 and Muhammed responded, “Give us till next week.”FIJ called him again on Wednesday and Muhammed requested one more week. “We will try to expedite our investigation. Give us till next week,” he repeated.THE BORROWER’S RESPONSEIn the court documents, the lender accused the borrower of falsifying Anibueze’s signature and conspiring with the bank to withdraw the money.On January 15, FIJ contacted Godwin Ewere, the director of the borrower, for his comments. He denied falsifying any signature, stating that he had defrayed the loan and was no longer indebted to the lender.“The loan obtained from Cool Financial Services has been fully paid and liquidated. We no longer owe Cool Financial Services. No signature was forged whatsoever,” Ewere said, adding that he also wanted to sue FCMB.“I don’t want to say anything, because I want to sue FCMB.“I am ready to meet them in court. I still see my name on (the) credit bureau that I am owing them [the lender]. They are saying over N20 million, which I don’t understand.”Ewere showed FIJ a harmonised document containing a series of cheques he issued in the name of the lender.When FIJ relayed Ewere’s response to the lender’s head of legal unit, he said it was a lie. He maintained that the borrower defaulted in repaying the loan and also withdrew the money illegally.

(C) FIJ

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Banking and Finance

Polaris Bank, partners take presentation of school essentials to Gbaja Girls Secondary Schools, Lagos

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Photo caption:PHOTO CAPTION L-R: Divisional Head, SURULERE Business, Dr. Bimbo Akorede; Principal Gbaja Junior Girls School, Mrs.Tawakalitu Dahiru; ED, Corporate & Investment Banking, Polaris Bank, Mrs. Abimbola Ozomah; ED PaceGate Limited, Raj Totlani, Group Head, Customer Experience & Value Mngt; Bukola Oluyadi & GM, Evolve Charity Trust, Mr. Godwin Ejeh when Polaris Bank & Evolve Charity Donated over 200 Schools essentials to both Gbaja Junior and Senior Secondary Schools in SURULERE last week in Lagos

Polaris Bank and one of its strategic CSR partners, Evolve Trust Charity on Wednesday stormed Gbaja Girls (Junior and Senior) High School, Surulere, Lagos in continuation of its presentation of school essentials programme to selected public school students in the country.The partnership which birthed in 2021 and primarily focused on empowering the girl-child and their male counterparts has reached over 15,000 students across 35 public schools in nine states including Lagos, Kano, Kogi, Imo and FCT, Abuja. Amongst other things, the initiative includes empowering young learners with brain training techniques and emotional intelligence education alongside making and distributing user-sized school essentials (bags, uniforms, sandals, books, and pens). The initiative also captures training of teachers in the respective schools, all sponsored by the Bank.Speaking at the presentation on Wednesday, the Bank’s Executive Director, Corporate and Investment Banking, Mrs. Abimbola Ozomah emphasized that the Bank being a signatory to United Nations’ (UN) Principles for Responsible Banking aligns its practices and strategies with the UN’s Sustainable Development Goals and the Paris Climate Agreement thus igniting its sustained interests in the training of the girl-child.According to data from the United Nations Educational, Scientific and Cultural Organisation (UNESCO), there are about 10.5 million out of school children in Nigeria with six million of them being girls.“This event is not just about distributing educational materials but empowering girls for bigger roles because educated girls grow into informed women. At Polaris Bank, we are committed to bridging the educational gap, empowering girls and building sustainability aligning with global framework,” she said.The Executive Director further charged the students to embrace the opportunities inherent in education while stating that the Bank will stop at nothing to support them.“Education is most powerful tool at your disposal and you have to utilize it to the maximum. Polaris Bank will not relent in supporting this laudable mission to empower girls who will drive the needed change to better our country and world. This intervention is in line with the Bank’s ongoing sustainability efforts aimed at reducing out-of-school children population and increasing access to quality education, especially for the girl-child and we urge you all to take full advantage,” Ozoma noted. Also speaking, Programme Manager at Evolve Charity Trust, Ejeh Godwin thanked Polaris Bank for keying into the Trust’s mission of supporting the girl-child nationwide. Godwin noted that while the initiative commenced in 2020, Polaris Bank partnered in 2021 and the Bank has never for once backed out since then.“I want to specially appreciate Polaris Bank for their tremendous support since 2021 that the partnership started. We couldn’t have done this alone nor come this far without their support. We’ve expanded our reach and hope to even bring more schools in other states on board this year, all thanks to Polaris Bank,” Ejeh said.The Principal, Gbaja Girls Junior High School, Mrs Dabiri Nwabuoku Adetoun Iyabo in her remarks also appreciated Polaris Bank for including the school in the intervention programme. “I want to specially thank Polaris Bank on behalf of staff and students for finding us worthy of benefitting from this laudable programme. You can feel the energy in the hall that the students are happy and so are the staff. This has boosted our morale, and we are incredibly happy about it,” the Principal enthused.One of the beneficiaries and Assistant Senior Girl of the school, Bankole Oreofeoluwa Emmanuella also thanked the Bank for symbolic gesture while promising to put the items into judicious use.“My friends and I are happy about this gesture from Polaris Bank, and we can’t thank the Bank enough. These items will further ease our learning, and we promise to not only put them to judicious use, but imbibe good maintenance culture,” Bankole said.Highlight of the event was presentation of the items to students by officials of Polaris Bank and Evolve Charity Trust.

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Banking and Finance

Wema Bank Kicks Off 80th Anniversary Celebration with “80 Years of Spreading Love” Valentine Campaign

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Wema Bank has kicked off its 80th-anniversary celebration with the launch of its “80 Years of Spreading Love” Valentine campaign, running from February 1st to 28th, 2025. This campaign is the first in a series of exciting activities leading up to the bank’s grand 80th anniversary on May 2, 2025, and is designed to reward customer loyalty, strengthen connections, and create unforgettable experiences through 80 Acts of Love.

With rewards tailored for every customer segment, Wema Bank is rolling out ₦11,000,000 in cash prizes, gift cards, movie tickets, spa treatments, fitness access, and Uber vouchers for young professionals and students.

Women and families will enjoy free SARA health consultations, business promotions, and networking opportunities, while Diaspora and Prestige customers can access discounted loans, cashback rewards, and priority banking services.

SMEs and entrepreneurs aren’t left out, as they’ll benefit from free delivery services, business training sessions, Meta advert credits, and promotional support, alongside up to 15% off CIG Motors products and 5% off Green Asset products with free StarTimes decoders and a six-month subscription.

The “80 Years of Spreading Love” campaign is just the beginning of a year-long celebration honoring the customers who have journeyed with Wema Bank over the past eight decades. To take part in the rewards, customers simply need to download ALAT and follow Wema Bank on social media for updates on exclusive benefits throughout the season of love.

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