Wema Bank Plc has reaffirmed its commitment to delivering strong returns for shareholders by declaring a dividend of One Naira (N1) per share for its 2024 financial year, representing a 100 per cent increase over the previous year. 

This proposed dividend, which will be approved at the upcoming Annual General Meeting (AGM), reflects the bank’s sustained profitability and dedication to rewarding investors.

According to the financial results submitted to the Nigerian Exchange Limited (NGX) as part of its Post-Listing Requirements, the N1 dividend for 2024 translates to a 20.69 per cent payout ratio. 

The bank’s dividend growth has been remarkable, moving from a 22 per cent increase in 2019 to an all-time high of 104 per cent in 2024, underscoring its commitment to a generous and consistent dividend policy.

Beyond dividends, Wema Bank outperformed its peers in the banking sector, recording over 60 per cent capital appreciation in 2024, making it the best-performing stock in the sector on the NGX.

The bank’s strong capital appreciation and shareholder-friendly policies highlight its commitment to delivering long-term value.

Chief Executive Officer of Global Assets Management, Babatunde Shobamowo, praised the bank’s approach, stating, “The dividend policy and track record in capital appreciation exemplify the premium it places on shareholder value.”

Financial performance in 2024 was equally impressive, with the Group posting a profit before tax (PBT) of N102.5 billion, a 134.7 per cent increase from N43.7 billion in the previous year. Profit after tax (PAT) surged by 140.1 per cent to N86.29 billion from N35.93 billion in 2023.

This performance was driven by a sharp rise in gross earnings, which climbed to N433.43 billion from N226.91 billion, reflecting a 91 per cent growth.

The bank’s ability to maintain cost-efficient operations during the period contributed significantly to this outstanding result.

Despite a challenging operating environment, Wema Bank’s total deposits grew by 35.65 percent in 2024, reaching N2.52 trillion from N1.86 trillion in 2023. 

Similarly, total assets increased by 60.04 percent to N3.59 trillion, up from N2.24 trillion in the previous year, underscoring the bank’s strong financial position.

Reacting to the 2024 dividend declaration, National Chairman of the Progressive Shareholders Association, Boniface Okezie, commended Wema Bank for staying true to its commitment to rewarding shareholders. 

“The progressive dividend payout is a strategic statement and an excellent reflection of the bank’s sound management and strong market position,” he said.
 
He urged shareholders to reinvest by taking up their rights in the upcoming capital raise, emphasising that Wema Bank’s ongoing transformation has set it on a path of sustained growth and profitability.

Olukayode Okusanya, a long-term shareholder and businessman, also praised the bank’s leadership for prioritizing shareholder returns.

He credited the Moruf Oseni-led management for steering the bank toward sustained profitability, stating that the consistent dividend payout over the last four years is a major motivation for shareholders to participate in the bank’s upcoming rights issue.

Reinforcing this commitment, Wema Bank’s Group Managing Director, Moruf Oseni, assured shareholders that their investments would continue to yield strong returns. 

“You can trust us always that your investment in the bank will produce exceeding returns. This is our promise to you,” he stated. 

He also emphasised the bank’s focus on leveraging technology to develop platforms and initiatives that address customer needs across various sectors.

As part of its long-term strategy, Wema Bank is advancing its recapitalisation efforts to meet the Central Bank of Nigeria’s new requirements. 

The final phase of its capital raise aims to generate N200 billion, comprising N149.3 billion through a rights issue and N50 billion via private placement. 

This move is expected to strengthen the bank’s market position and enable it to play a significant role in the post-recapitalisation era.

At the core of Wema Bank’s business philosophy is a commitment to partnership, innovation, efficiency, and customer-centric service. 

With a deep understanding of its customers’ needs, the bank continues to enhance its leadership in digital banking while expanding its corporate and commercial presence on a global scale.