The suspension, affected deposits exceeding N500,000 for individuals and N5 million for corporate entities, ended on April 30, 2024.

During the suspension period, customers enjoyed a waiver of the usual processing fees of 2% for individuals and 3% for corporates on large deposits.

This initiative was part of a broader regulatory measure aimed at encouraging bank deposits and managing liquidity within the financial system.

According to an email from Sterling Bank announcing the resumption of large deposit charges read:

“We wish to remind you of the temporary suspension of the processing fees on cash deposits above N500,000 for individuals and N3,000,000 for corporates by the Central Bank of Nigeria until Tuesday, April 30th, 2024.

“During this period, you could deposit cash above these thresholds at any Sterling Branch without incurring the usual 2% & 3% processing fees respectively for individuals and corporates.

“This is to inform you that effective Wednesday, May 1st, 2024, processing fees have been reintroduced on cash deposits exceeding the thresholds.

“This means when you deposit cash above N500,000 (for individuals) and N3,000,000 (for corporates) at any Sterling Branch, the applicable processing fee of 2% and 3% will be incurred respectively.”

Another source from Wema Bank Plc, said they were told to inform their  customers about the same development, but  the processing charges has not officially started.  “We were told to  inform customers but it has not really take effect,  people still paid the sum of N500,000 without  processing charges last week.”

Recall that the CBN issued a directive to all banks, other financial institutions, and non-bank financial institutions, suspending the processing charges previously imposed on large cash deposits in December 2023.

This change, referenced under the “Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions” affects deposits over N500,000 for individual accounts and N3,000,000 for corporate accounts.

Earlier in 2019, the CBN announced that it would begin to charge bank customers making cash deposits and withdrawals from September 19, 2019.

In a circular made available to the public, the apex bank disclosed that the new policy of transaction fees was designed to reduce cash in use.

According to recent report, currency outside banks has surged in the month of March 2024 as Nigerians keep 94% cash in hand.

An analysis of the latest money and credit statistics data from the CBN showed that while currency in circulation was N3.87 trillion, currency outside banks was N3.63 trillion.

The Issuer is a Special Purpose Vehicle (SPV) set up by Wema Bank Plc (‘’the Bank’’ or ‘‘the Sponsor’’) for the issuance of debt securities.

Agusto in its latest rating assessment released on Tuesday said it upgraded the rating of Wema Bank Funding SPV Plc’s Series II ₦17.7 billion seven-year fixed rate bond to ‘Bbb+’ as a result of significant improvement on key metrics of assessment. 

‘‘The rating assigned to the bond is hinged on the Sponsor’s upgraded rating of ‘Bbb’ and is a notch higher given that 45% of the bond proceeds was invested in a 13.53%, 7-year Federal Government of Nigeria (FGN) bond and held in the custody of the Joint Trustees,’’ Agusto & Co. stated in the report. 

It further noted that ‘Bbb+’ assigned Wema Bank affirmed the leading financial institution’s improved profitability, satisfactory asset quality and liquidity profile.

‘‘In the unlikely event of a default, this provides some recovery prospects. The upgrade in the rating assigned to Wema Bank reflects its improving profitability metrics, satisfactory asset quality and liquidity profile,’’ the report added. 

Commenting on the report, Mr. Ademola Adebise, Wema Bank’s Managing Director/Chief Executive Officer, stated: ‘‘Wema Bank welcomes with excitement this latest positive assessment. This important rating adds to the series of positive outlooks that credible independent global ratings agencies have given to our bank which affirms the resilience of our bank as a stable financial institution. We are buoyed by these positive affirmations to recommit delivering innovative banking and financial solutions that foster inclusive growth for individuals and businesses, and more importantly pushing further Wema Bank’s frontiers as a major enabler of national economic growth.’’ 

Agusto & Co. explained that the rating validity for the bank subsists up until 10 September 2023, but noted, however, that constraining these positive factors are the elevated operating cost profile, the harsh regulatory environment and prevailing macroeconomic headwinds. 

Wema Bank’s fascinating upward trajectory was acknowledged recently when it emerged as the best performing bank in the first half of year 2022 financial year with a weighted average score of 2.83 points ahead of 12 other banks. The Nigerian banking performance HY 2022 prepared by Nairametrics showed that Wema Bank surpassed others on several key metrics including total asset growth, loan book growth, profit growth, cost-to-income ratio movement, and return on average equity.

In similar vein, global rating agency Fitch affirmed Wema Bank’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a Stable Outlook, Viability Rating (VR) at ‘b-‘ and National Long-Term Rating at ‘BBB (nga)’, in July 2022.

Amongst the key rating drivers (KRDs), Fitch stated that Wema’s IDRs were driven by its standalone creditworthiness, as expressed by its VR.

The VR reflects Wema’s small franchise, high credit concentrations, aggressive loan and balance-sheet growth and funding weaknesses.

It also reflected good asset quality and expectation of a significant improvement in capitalisation and leverage, due to a material rights issue due to be concluded by end-2022.

This information is contained in the Financial Results for the Period Ended 30 June, 2022 released in Lagos on Thursday, 28 July, 2022.

In the report, the bank recorded an increase of 50 percent in its Gross Earnings from the ₦39.82 billion it recorded in H1 of 2021 to ₦59.59 billion.

It also grew its Interest Income by 55 percent year-on-year, from the ₦32.19 billion recorded at this period last year to ₦49.75 billion. The bank’s Non-Interest Income went up from ₦7.64 billion in the period ended 30 June, 2021 to ₦9.85 billion, an increase of 29 percent.

Similarly, Wema Bank recorded a 43 percent increase in Profit before tax (PBT) from ₦4.30 billion over the same period last year to ₦6.13 billion for the period under review.

The bank’s Profit after tax (PAT) also increased from ₦3.72 billion in H1 2021 to ₦5.30 billion reflecting a raise of 42 percent.

Wema Bank also grew its deposit by 43 percent from ₦968.17 billion reported in FY 2021 to ₦1.09 trillion in the H1 2022.

It also grew its loans and advances from ₦418.86 billion to ₦447.23b in H1 2022, an increase of seven percent.

Ademola Adebise, the Managing Director/Chief Executive officer of Wema Bank PLC., attributed the remarkable performance to increased customer satisfaction the bank delivers through its investment in technology.

“Our performance has shown strong and promising results in the second quarter. Customers have continually shown trust in our proficiency, innovation, and service delivery even as the market gets more challenging. That said, I am confident, that despite increased volatility and uncertainty, we will continue to scale up, manoeuvre the environment, creatively manage our resources, and drive long-term, substantial returns for shareholders.”

In his own remarks, the bank’s Chief Finance Officer, Mr. Tunde Mabawonku, explained that the strong performance stems from the bank’s diversification of its business and value derived from its digital assets.

“This has been a strong first half with Interest Income up 55% and Profit Before Tax up 43% compared to H1 2021.” Mabawonku said.

“This strong showing is down to diversification at different levels of our businesses. Also, it is a testament to the advantage of our investment in digital banking assets which have continued to boost customer satisfaction and build trust for us. Also, we are aware of the challenges that the rising cost of living is having on our customers and stakeholders. Given

the size of our balance sheet and income growth, we have trust in our ability to continue to provide support and help cushion the impact of growing costs in the market,” he explained.