Wema Bank Plc, at its Extraordinary General Meeting (EGM) held on Friday, October 20, 2017, in Lagos, received the approval of its shareholders towards the attainment of its scheme of capital reorganisation exercise.
With the approval, it would give effect to the creation of a Capital Reduction Account (CRA), then transfer the negative balances in the retained revenue account to the Capital Reduction Account (CRA), reflect the carrying amounts on the specified assets based on their current economic values while effectively setting off these balances against the share premium account.
Wema Bank will approach the Federal High Court for approval on the resolutions passed by the shareholders. The approval is expected to be received within the next few weeks, leading to the passage of all accounting entries before the 2017 financial year end.
The exercise is expected to make shareholders, alongside the investment community, witness a more efficient balance sheet, improvement in performance ratio-as the plough back of successive years’ profits lead to continued growth of the Wema brand.
In addition, the bank would also be well positioned to commence payment of dividends.
Commenting on the unaudited Q3’2017 financial results of the bank, the MD/CEO, Segun Oloketuyi, provided further insights into the performance of the bank during the period.