BY MOSHOOD ISAMOTU / LAGOS
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Wema Bank Plc has lived up to its promise of an improved return on investment for shareholders with the declaration of a One Naira (N1) dividend per share for its 2024 financial year, a 100 % increase over the previous year’s to be approved by the shareholders during the Annual General Meeting (AGM).
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By the Bank’s financial performance, submitted to the Nigerian Exchange Limited (NGX), as part of the Post Listing Requirements for quoted companies, the N1 dividend for the 2024 financial year amounts to a 20.69 % payout ratio.
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” From 22% dividend growth in 2019, Wema Bank hit an all-time high of 104 % in 2024, an indication of consistency and generous dividend policy. The Bank also outperformed competitors in the banking sector last year with over 60% capital appreciation, thus emerging as the best-performing stock in the banking sector on NGX. The dividend policy and track record in capital appreciation exemplifies the premium it places on shareholder value.”, says the Chief Executive Officer, Global Asset Management Nigeria Limited, Sir Babatunde Sobamowo .
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The Group posted a profit before taxation(PBT) of N102.517 billion as against N43.663 billion in the previous year, an increase of 134.7 %. Profit after tax (PAT) shot up by 140.13% to N86.29 billion from N35.93 billion reported in 2023. This was made possible by the Gross Earnings of N433.434billion in the year compared with N226.914b in the corresponding year, amounting to 91 % and reflecting a cost-efficient operational structure in the bank during the review period,
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Despite the inclement operating environment, Total Deposits grew by 35.65% in 2024 to N2,523.82 billion from N1,860.57 billion reported in 2023. Similarly, Total Assets stood at N3,585.05 billion in 2024, an increase of 60.04% over N2,240.06 billion recorded in the corresponding year.
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Commenting on the One Naira dividend declared for 2024, the National Chairman of Progressive Shareholders Association, Boniface Okezie, said Wema Bank had kept to its promise of good returns to the shareholders, which is highly commendable. He added that “the progressive dividend payout is a strategic statement and an excellent reflection of the sound management and capability and good standing of the bank in the market.”
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Okezie described the proposed dividend as generous and a motivator for the existing shareholders of the Bank, urging them to use the dividend to take up their Right Issue fully when the bank capital raise opens.
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According to him, the Bank got it right with its repositioning and operational re-engineering, which has placed it on the path of sustained profitability and growth. ” The current development in the bank is a win-win situation for all the stakeholders”, he noted.
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Corroborating him, Olukayode Okusanya, a businessman and long-term shareholder of the Bank, commended the management for prioritizing the return on shareholders’ investment with the newly declared dividend. He further stated that the repositioning engineered by Moruf Oseni-led management yielded good returns. “With this consistent and good dividend in the last four years, Wema Bank shareholders are motivated to take up their upcoming Right Issue in the Bank and an attraction to boost their portfolio with the Bank’s stocks.”, he asserted,
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The Bank’s Group Managing Director, Moruf Oseni, told the shareholders recently that “You can trust us always that your investment in Bank will produce exceeding returns. This is our promise to you”. He also assured the banking public that the Bank would be developing platforms and supporting initiatives that prioritize the needs of our customers, leveraging technology in solving problems across all sectors.
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Wema Bank is at the forefront of meeting the recapitalization requirements of the Central Bank of Nigeria for banks with the final phase of its capital raise of N200 of N149.3 billion by rights issue and N50 billion through private placement. The capital raise will strengthen the bank’s position to play a big role post-recapitalization for banks.
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The Bank’s approach to business is hinged on partnership, progress, service, innovation, and efficiency, informed by an understanding of customers’ businesses and objectives, such that it can anticipate and meet their needs as they fulfill their financial goals and aspirations.
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Wema Bank has always maintained leadership position in the digital banking space while enhancing corporate and commercial presence on a global scale.
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