Shareholders of Wema Bank have expressed their delight at the 100% increase in dividend declared per unit for the 2024 financial year. According to the bank’s audited report filed with the Nigerian Exchange Limited, the board of Wema Bank proposed a dividend per share of 100 kobo per share, up from 50 kobo per share in 2023. This proposal is subject to shareholders’ approval at the bank’s next Annual General Meeting.
The dividend payout ratio for the 2024 financial year stands at 20.69%, indicating the bank’s commitment to rewarding its shareholders. This development has been hailed by shareholders, who have commended the bank’s management for prioritizing shareholder value.
Babatunde Shobamowo, Chief Executive Officer of Global Assets Management, praised Wema Bank’s consistent dividend growth, noting that the bank has outperformed its competitors in the banking sector. “From 22% dividend growth in 2019, Wema Bank hit an all-time high of 104% in 2024, an indication of consistency and a generous dividend policy,” he said.
Boniface Okezie, National Chairman of Progressive Shareholders Association, described the proposed dividend as generous and a motivator for existing shareholders. He urged shareholders to take up their rights issue fully when the bank’s capital raise opens. “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.
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. “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 said.
Wema Bank’s impressive financial performance in 2024 was driven by its focus on strong strategy execution in key areas such as risk management, customer relationship management, and digital banking. The bank’s Managing Director/Chief Executive Officer, Mr. Moruf Oseni, attributed the strong performance to the bank’s commitment to supporting Nigerian businesses and individuals with innovative banking products and services.
The bank’s financial highlights for the 2024 financial year include a 135% increase in profit before tax to N102.51 billion, up from N43.59 billion in 2023. Total assets grew by 60% to N3.59 trillion, while deposits increased by 36% to N2.52 trillion. Loans and advances grew by 50% to N1.200 trillion, with non-performing loans standing at 3.86% as of the end of 2024.
Wema Bank’s commitment to innovation and digital banking was evident in the performance of its flagship digital platform, ALAT. The bank’s focus on supporting Nigerian businesses and individuals with innovative banking products and services has positioned it as a leader in the banking sector.
In conclusion, Wema Bank’s 100% dividend increase for the 2024 financial year is a testament to the bank’s commitment to rewarding its shareholders. The bank’s impressive financial performance, driven by its focus on strong strategy execution and innovation, has positioned it as a leader in the banking sector. As the bank continues to grow and expand its operations, shareholders can expect continued returns on their investment.
