(Ecofin Agency) - In Nigeria, Wema Bank is looking to raising equity next year to increase its capital and reduce operating costs.

“We would be looking at going on an equity raise at the end of 2018. Economic headwinds are still here, though we see it improving. We believe that H2 will be much better,” said Tunde Mabawonku, the Chief Finance Officer of the bank,

He said the mid-tier lender cut loan growth this year to between 1-2% of total loans, from the 22.3% growth last year. This was essential in restructuring Wema's balance sheet to repay expensive fixed deposits and retain liquidity in the business. However, it would mainly offer short-term loans from repayments this year.

The CFO added that the bank could also increase debt capital this year assuming bond yields. This would help it increase its capital adequacy ratio (CAR), which is currently at 12.71%.

It should be recalled that the CEO of Wema Bank, Segun Oloketuyi, in May said the bank is still open to mergers and acquisitions to build its performance but for the main time it will focus on developing its retail business through a digital strategy developed to attract and serve consumers cheaply.

According to Mabawonku, ever since the bank's digital new digital banking platform was launched in May it has attracted 26,000 new customers and is currently creating about 1,000 new bank accounts on a daily basis.

Wema has said it is targeting three million customers by 2020 from the current one million.

Anita Fatunji