In fulfillment of its promise to provide an improved return on investment for shareholders, Wema Bank Plc declared a One Naira dividend per share for its 2024 financial year, reflecting a 100 percent increase over the previous year.
According to 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 percent payout ratio.
“From a 22 percent dividend growth in 2019, Wema Bank reached an all-time high of 104% in 2024, demonstrating consistency and a generous dividend policy. The bank also outperformed competitors in the banking sector last year, with over 60% capital appreciation, making it the best-performing stock in the banking sector on NGX. The dividend policy and track record in capital appreciation exemplify the premium placed on shareholder value,” said Babatunde Shobamowo, Chief Executive Officer of Global Assets Management.
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Commenting on the One Naira dividend declared for 2024, Boniface Okezie, National Chairman of the Progressive Shareholders Association, said Wema Bank had kept its promise of delivering good returns to shareholders, which he highly commended. He added, “The progressive dividend payout is a strategic statement and an excellent reflection of the sound management, capability, and strong standing of the bank in the market.”
Okezie described the proposed dividend as generous and a motivator for the bank’s existing shareholders, urging them to use the dividend to fully take up their rights issue when the bank’s capital raise opens.
According to him, the bank’s repositioning and operational re-engineering have placed it on the path to sustained profitability and growth. “The current development in the bank is a win-win situation for all stakeholders,” he noted.
Corroborating his statement, 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 the Moruf Oseni-led management had yielded good returns. “With this consistent and good dividend over the last four years, Wema Bank shareholders are motivated to take up the upcoming rights issue and view it as an attraction to boost their portfolios with the bank’s stocks,” he asserted.
The bank’s Group Managing Director, Moruf Oseni, recently assured shareholders, “You can always trust us that your investment in the 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 customers, leveraging technology to solve problems across all sectors.
The Group posted a profit before taxation (PBT) of N102.517 billion, compared to N43.663 billion in the previous year, representing a 134.7 percent increase. Profit after tax (PAT) surged by 140.13 percent to N86.29 billion from N35.93 billion reported in 2023. This growth was driven by gross earnings of N433.434 billion for the year, compared to N226.914 billion in the corresponding period, reflecting a 91 percent increase and a cost-efficient operational structure during the review period.
Despite the challenging operating environment, total deposits grew by 35.65 percent in 2024 to N2,523.82 billion, up from N1,860.57 billion in 2023. Similarly, total assets stood at N3,585.05 billion in 2024, an increase of 60.04 percent over the N2,240.06 billion recorded in the previous year.
Wema Bank is at the forefront of meeting the Central Bank of Nigeria’s recapitalization requirements for banks, with the final phase of its capital raise consisting of N149.3 billion through rights issue and N50 billion through private placement. The capital raise will strengthen the bank’s position to play a significant role in the post-recapitalization landscape for banks.
The bank’s approach to business is based on partnership, progress, service, innovation, and efficiency, all informed by an understanding of customers’ businesses and objectives, enabling it to anticipate and meet their needs as they fulfill their financial goals and aspirations.
Wema Bank has consistently maintained a leadership position in the digital banking space while enhancing its corporate and commercial presence on a global scale.
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