Wema Bank Plc is set to close 17 branches located in the South-West and Northern parts of the country to enable it operate a regional banking. Group managing director/chief executive of the bank, Mr. Segun Oloketuyi who disclosed this in Lagos on Tuesday at press a briefing said that for the bank to operate as a regional bank, 13 branches established in the North and four branches in the South -East would be shut down.

He said that the closure of those branches was necessary as the greater proportion of the bank’s infrastructure was in the South-South and South-West, by virtue of its origin, stressing that the bank has a greater concentration of its branches in Lagos and South-West.

He said that the branches within the region accounted for 98.8 per cent of the total loan portfolio and 96.9 per cent of deposit of the bank as at October, 2010.

He further pointed out that out of 154 branches operating across the country, 137 are  located in the region where the bank has chosen to operate.

Oloketuyi stated that Wema bank operating as a regional bank would offer the same banquet banking services as a national and international bank.

He said that for  the bank to have maximum impact, more branches would be established within the region while the bank’s staff working in South-West and North would be redeployed to other branches.

Olaketuyi, however, said that the thought of regional bank was because since its strength resides in these regions, it might as well enable it to be focused, grow its business and later spread exceptional services to other regions.

In doing so, he said it would be better positioned to efficiently deploy its resources (capital, manpower and operational capacity) towards achieving better financial performance and delivery of top quality services to its customers.  He said that the bank which had negative shareholders fund of N66 billion in 2009 has been recapitalised.

Listing some of the bank’s achievement in last 18 months, he said that as at November, 2010 the management has recovered about N31 billion, raise N7.5 billion through its private placement, adding that the minimum capital required for it to meet its capitalization was N10 billion.

Chief executive of the bank said that the customers that located within the region, the management planned to develop and maintain strong electronic banking operations that would provide them seamless services and where necessary while other commercial banks that operate in other regions where it has close its branches would provide correspondent banking services to those customers on the behalf the Wema bank.

He said that correspondent Banking relationships are a common feature of collaboration both in the local and global banking practice.

According to the CBN new banking model, a regional bank can operate in minimum of six States and maximum 12 contiguous states and the Federal Territory, stressing that those states must be within not more two geo-political Zones

He said that for  the bank to have maximum impact, more branches would be established within the region while the bank’s staff working in South-West and North would be redeployed to other branches.

According to the CBN new banking model, a regional bank can operate in minimum of six States and maximum 12 contiguous states and the Federal Territory, stressing that those states must be within not more two geo-political Zones

Wema Bank Plc is set to close 17 branches located in the South-West and Northern parts of the country to enable it operate a regional banking. Group managing director/chief executive of the bank, Mr. Segun Oloketuyi who disclosed this in Lagos on Tuesday at press a briefing said that for the bank to operate as a regional bank, 13 branches established in the North and four branches in the South -East would be shut down.

He said that the closure of those branches was necessary as the greater proportion of the bank’s infrastructure was in the South-South and South-West, by virtue of its origin, stressing that the bank has a greater concentration of its branches in Lagos and South-West.

He said that the branches within the region accounted for 98.8 per cent of the total loan portfolio and 96.9 per cent of deposit of the bank as at October, 2010.

He further pointed out that out of 154 branches operating across the country, 137 are located in the region where the bank has chosen to operate.

Oloketuyi stated that Wema bank operating as a regional bank would offer the same banquet banking services as a national and international bank.

He said that for the bank to have maximum impact, more branches would be established within the region while the bank’s staff working in South-West and North would be redeployed to other branches.

Olaketuyi, however, said that the thought of regional bank was because since its strength resides in these regions, it might as well enable it to be focused, grow its business and later spread exceptional services to other regions.

In doing so, he said it would be better positioned to efficiently deploy its resources (capital, manpower and operational capacity) towards achieving better financial performance and delivery of top quality services to its customers. He said that the bank which had negative shareholders fund of N66 billion in 2009 has been recapitalised.

Listing some of the bank’s achievement in last 18 months, he said that as at November, 2010 the management has recovered about N31 billion, raise N7.5 billion through its private placement, adding that the minimum capital required for it to meet its capitalization was N10 billion.

Chief executive of the bank said that the customers that located within the region, the management planned to develop and maintain strong electronic banking operations that would provide them seamless services and where necessary while other commercial banks that operate in other regions where it has close its branches would provide correspondent banking services to those customers on the behalf the Wema bank.

He said that correspondent Banking relationships are a common feature of collaboration both in the local and global banking practice.

According to the CBN new banking model, a regional bank can operate in minimum of six States and maximum 12 contiguous states and the Federal Territory, stressing that those states must be within not more two geo-political Zones

apoti:

Wema Bank, so they still exist

Atk1nson:

I hope dat includes d one in my area ; a bank where I was told to pay #20 to get a new teller because I made a mistake on d 1st one

obasy09:

TO ALL THOSE THAT MOCK THE BANK

WEMA Bank operates primarily in suburban and rural areas. They seem to be in the forefront of rural banking. If not for WEMA, many rural areas would have remained without commercial banks. The fact that they are restrategising apparently to focus their resources in their stronghold areas in the South should not make the bank a laughing stock.

I BELIEVE THAT BY SO DOING, THEY WILL BE MORE EFFICIENT. THE ONLY REGRET IS THAT SOME OF THEIR WORKERS WILL BE THROWN INTO THE LABOUR MARKET. I ADVISE THAT ADEQUATE COMPENSATION BE PAID TO AFFECTED WORKERS.