Wema Bank shareholders are celebrating a remarkable financial performance for the 2024 fiscal year, marked by a substantial 100% increase in dividend payout. The proposed dividend of 100 kobo per share, double the previous year’s 50 kobo, is a testament to the bank’s consistent growth and commitment to shareholder value. This significant increase translates to a 20.69% payout ratio, underscoring the bank’s robust financial health. Market analysts and shareholders alike have lauded this move, citing it as a reflection of the bank’s sound management, strategic repositioning, and operational efficiency. The impressive dividend growth, coupled with a 60% capital appreciation in the past year, positions Wema Bank as a leader in the Nigerian banking sector, outperforming competitors and generating significant returns for its investors.
The positive response from shareholders further emphasizes the impact of the increased dividend. Boniface Okezie, National Chairman of the Progressive Shareholders Association, commended Wema Bank for delivering on its promise of strong returns. He described the proposed dividend as generous and a motivating factor for shareholders, encouraging them to participate fully in the upcoming rights issue. Okezie highlighted the bank’s strategic repositioning and operational re-engineering as key drivers of its sustained profitability and growth, creating a win-win situation for all stakeholders. This sentiment is echoed by other long-term shareholders who see the consistent dividend payouts as a clear indication of the bank’s commitment to maximizing shareholder value.
The impressive dividend increase is underpinned by Wema Bank’s strong financial performance across various metrics. The bank recorded a remarkable 135% surge in profit before tax, reaching N102.51 billion compared to N43.59 billion in the previous year. This robust growth is further evidenced by a 60% increase in total assets, reaching N3.59 billion, and a 36% expansion in the deposit base, climbing to N2.52 billion. Loans and advances also witnessed substantial growth, surging by 50% to N1.2 trillion, while maintaining a healthy non-performing loan ratio of 3.86%. These figures showcase the bank’s effective risk management strategies and its ability to capitalize on market opportunities.
Wema Bank’s Managing Director/Chief Executive Officer, Mr. Moruf Oseni, attributed the outstanding 2024 performance to the bank’s focused execution of key strategies, particularly in risk management, customer relationship management, and digital banking. The bank’s commitment to providing innovative banking products and services tailored to the needs of Nigerian businesses and individuals is a cornerstone of its success. ALAT, the bank’s flagship digital platform, continues to spearhead the adoption of digital banking services among Nigeria’s youthful population. This digital focus is exemplified by ALAT XPlore, a pioneering banking app designed for teenagers to cultivate financial literacy and responsible money management.
ALAT XPlore, the first licensed banking app tailored for teenagers aged 13 to 17, represents Wema Bank’s innovative approach to financial inclusion and youth empowerment. By providing a platform for teenagers to learn about money management, set financial goals, and develop responsible spending habits, ALAT XPlore aims to equip the next generation with essential financial skills. This initiative aligns with the bank’s broader commitment to fostering financial literacy and empowering individuals to take control of their financial futures. The success of ALAT XPlore further solidifies Wema Bank’s position as a forward-thinking institution at the forefront of digital innovation in the Nigerian banking sector.
The bank’s strong performance, as reflected in its impressive financial results and the substantial dividend increase, is a testament to its resilience and adaptability in a dynamic operating environment. The commitment to customer-centric solutions, innovative digital offerings, and prudent risk management has enabled Wema Bank to achieve significant growth and deliver exceptional value to its shareholders. The combination of strong financial performance, strategic initiatives, and a focus on shareholder returns positions Wema Bank for continued success and reinforces its status as a leading player in the Nigerian banking landscape.
