Some shareholders of Wema Bank have expressed delight at the 100 per cent increase in the dividend declared per unit for the 2024 financial year.
According to its audited report filed with the Nigerian Exchange Limited, the board of Wema Bank proposed a dividend per share of 100 kobo per share (2023: N0.50) based on the number of shares existing as of 31 December 2024. The proposal is still subject to shareholders’ approval at its next Annual General Meeting.
By the bank’s financial performance, the N1 dividend for the 2024 financial year amounts to a 20.69 per cent payout ratio.
“From 22 per cent dividend growth in 2019, Wema Bank hit an all-time high of 104 per cent in 2024, an indication of consistency and a generous dividend policy. The bank also outperformed competitors in the banking sector last year with over 60 per cent capital appreciation. The dividend policy and track record in capital appreciation exemplify the premium it places on shareholder value,” says the Chief Executive Officer of Global Assets Management, Babatunde Shobamowo.
On the improved 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.
“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,” he said.
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 rights issue fully when the bank capital raise opens.
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.
A businessman and long-term shareholder of the bank, Olukayode Okusanya, also commended the management for prioritising the return on shareholders’ investment with the newly declared dividend.
“With this consistent and good dividend in the last four years, Wema Bank shareholders are motivated to take up their upcoming rights issue in the bank and an attraction to boost their portfolio with the bank’s stocks,” he affirmed.
Wema Bank grew its profit before tax to N102.51bn, representing an increase of 135 per cent over the N43.59bn recorded in the corresponding period in 2023.
Its balance sheet indicated that total assets grew by 60 per cent to N3.59bn in FY 2024 from N2.24bn in FY 2023. The bank also grew its deposit base year on year by 36 per cent to N2.52bn from N1.86bn reported in FY 2023. Loans and advances grew by 50 per cent to N1,200bn in FY 2024 from N801.10bn in FY 2023. Non-performing loans stood at 3.86 per cent as of the end of FY 2024.
Commenting on the results, the Managing Director/Chief Executive Officer of the bank, Mr Moruf Oseni, stated that the strong 2024 FY performance stems from the commercial bank’s focus on strong strategy execution in the key areas of risk management, customer relationship management and digital banking.
He said, “Our people are committed to the institution’s founding ethos of supporting Nigerian businesses and individuals with the most innovative banking products and services. ALAT, our flagship digital platform, continues to lead in the adoption of digital banking services across the increasingly young Nigerian populace. An example of this innovation is ALAT XPlore, the first licensed banking app for teenagers designed to help ages 13 to 17 build their money management skills, achieve their financial goals and become financially responsible. Despite the constrained operating environment, the bank continues to experience strong growth across all its financial indices, reflecting the quality and resilience of the workforce.
