Shareholders of Wema Bank Plc have applauded the lender’s decision to double its dividend payout for the 2024 financial year, reinforcing confidence in its growth trajectory and commitment to investor returns.
In its audited financial statement filed with the Nigerian Exchange Limited (NGX), the bank’s board proposed a dividend of 100 kobo per share, a 100% increase from the 50 kobo per share paid in 2023. The proposed payout, which amounts to a 20.69% payout ratio, is pending approval at the upcoming Annual General Meeting (AGM).
A Milestone in Dividend Growth
The latest dividend declaration marks a significant leap in Wema Bank’s shareholder reward policy. From a 22% dividend growth in 2019, the bank has now achieved an all-time high of 104% growth in 2024, reflecting its consistent profitability and strong capital management.
Babatunde Shobamowo, Chief Executive Officer of Global Assets Management, praised the bank’s performance, stating:
“Wema Bank has not only delivered an impressive dividend hike but also outperformed peers with over 60% capital appreciation in 2024. This demonstrates a firm commitment to maximizing shareholder value.”
Shareholders Laud Management’s Strategic Execution
Boniface Okezie, National Chairman of the Progressive Shareholders Association, commended the bank for fulfilling its promise of enhanced returns.
“The progressive dividend increase is a testament to Wema Bank’s sound management and market strength. This generous payout should motivate shareholders to fully participate in the upcoming rights issue,” he noted.
Olukayode Okusanya, a long-term shareholder and businessman, echoed similar sentiments:
“With consistent dividend growth over the past four years, investors are more confident in increasing their stakes in Wema Bank, especially with the impending capital raise.”
Record Financial Performance in 2024
The dividend hike follows a stellar financial performance in 2024, with key highlights including:
- Profit Before Tax (PBT) surged by 135% to ₦102.51 billion, up from ₦43.59 billion in 2023.
- Total Assets grew by 60% to ₦3.59 trillion, compared to ₦2.24 trillion in the previous year.
- Customer Deposits increased by 36% to ₦2.52 trillion, up from ₦1.86 trillion.
- Loans & Advances rose by 50% to ₦1.2 trillion, reflecting strong credit expansion.
- Non-Performing Loans (NPL) ratio remained low at 3.86%, underscoring robust risk management.
Digital Innovation Driving Growth
Moruf Oseni, Managing Director/CEO of Wema Bank, attributed the strong results to the bank’s strategic focus on digital banking, risk management, and customer-centric services.
“Our flagship digital platform, ALAT, continues to lead Nigeria’s fintech revolution, with innovations like ALAT XPlore —the first licensed banking app for teenagers—reinforcing our commitment to financial inclusion,” he said.
Outlook: Sustained Growth & Shareholder Value
With a solid balance sheet, impressive asset growth, and a progressive dividend policy, Wema Bank is well-positioned to sustain its upward trajectory. The planned rights issue is expected to further strengthen its capital base, enabling deeper market penetration and enhanced profitability.
As shareholders await the AGM to ratify the dividend, analysts anticipate continued investor confidence in one of Nigeria’s most resilient banking stocks.