CBN restricts N313.84bn customer funds from Wema Bank

The Central Bank of Nigeria (CBN) has restricted more customer funds from Wema Bank, as deposits to the lender increased by 15.1 percent in twelve months of 2021, according to its financials.

Wema Bank had reported that its customer deposit rose to N927.11 billion as of December 31, 2021, up from the N804.87 billion in its coffers during the corresponding period.

With the CBN’s cash reserve ratio (CRR) being 27.5 percent [after 2020’s increase from 22.5 percent], the financial regulator locked away a total of N313.84 billion of customers funds in Wema Bank last year.

This was an increase when compared to the N246.97 billion the Godwin Emefiele-led central bank restricted in 2020, when customers total money in the lender was N804.87 billion.

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The restriction will reduce the quantity of money available for Wema Bank to lend individuals, small businesses and corporate organisations in need of loan.

At the end of the period under review, customers with accounts at Wema Bank were only able to borrow N418.17 billion from available deposit, up from the N360.07 billion reported in 2020 Full Year.

Meanwhile, Wema Bank reported that it generated N91.30 billion last year, in contrast to the N81.38 billion turnover for the twelve months period of the corresponding year.

The creditor reported profit for the year 2021 was N8.86 billion, surpassing the N4.57 billion Wema Bank had reported the year before.

Meanwhile, the bank struggled to create value for its shareholders in 2021, as total investment held by stockholders of Wema Bank only grew by 5.3 percent during the year.

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