Wema Bank’s positive looking full Year 2023 audited financial statement has been rubbished by a scandalous 9 billion loss incurred via several litigations.
Ethical issues relating to how the bank operates in relation to its customers have also taken the shine off the earlier mentioned financial statement.
Recall that the Moruf Oseni-led financial institution recently released its full Year 2023 audited financial statement, declaring a profit before tax growth of 196 per cent from ₦14.75bn to N43.59 billion.
In it’s financial statement, the bank also proposed a dividend per share of 50kobo; up from 30 kobo in 2022 and deposit growth of 60 per cent to ₦1,860.57bn from ₦1,165.93bn reported in FY 2022. Wema Bank said that it also recorded a Return on Equity (ROAE) of 39.28 per cent, NPL of 4.31 per cent and N40billion 1st tranche of Capital raise
However, amidst all of these near perfect results is an oozing discovery that Wema Bank splashed a whooping 9 billion on legal cases, depicting a bank linked to several litigations.
A report of 239 million loss to fraudsters as captured in the financial statement has also not helped matters, as these unpalatable information have dented the perceived good Year 2023 financial statement.
Some of the high profile cases involving Wema Bank in recent times includes Alhaji A Olalekan Vs Wema Bank. The suit was a breach of contract matter which was instituted after the financial institution failed to pay the proceed of a fixed deposit account after it’s maturity.
It is also noteworthy to add that a Federal High Court in Lagos awarded N10 million damages against Wema Bank Plc, after an American-based Nigerian model, Nneoma Anosike, sued the bank for infringement of her intellectual property.
Also, in 2023, Goldzek Multi Projects Limited owned by a retired Permanent Secretary in Ogun State Civil Service sued Wema Bank over illegal deductions from its account with the bank.
According to the company, Wema Bank allegedly deducted N484, 028.14, from its account and refused to pay back after promising to do so. Again, in 2023, a Lagos-based family in Bolade, Oshodi dragged Wema Bank Plc to court over the continued use of its building premises known as Bolade House, and located in Oshodi Expressway, Oshodi/Isolo Local Government Area of the state.
According to the family, despite the family ejection order served on the bank, the management of the financial institution refused to vacate the premises three years after the expiration of its agreement.
Interestingly, Wema Bank has also been trailed by issues of ethical banking, as in 2022, the financial institution was queried by the Federal Competition and Consumer Protection Commission (FCCPC) over alleged illegal banking practices. The bank was accused of using its online banking application, ALAT, to open unauthorised accounts for customers with information sourced from their Bank Verification Number (BVN).
They also noted that they were getting emails linked to their BVN, and One Time Passwords (OTP) from the bank despite not requesting them. Several customers who complained noted that the act by the bank was a violation of their data rights.
Typically, these legal issues reported in several viral news stories have taken the shine off Wema Bank’s recently released financial statement where the financial institution declared a 196 per cent surge in profit before tax, reaching ₦43.59 billion.
Post Views: 469
