Shareholders Celebrate as Wema Bank Announces 100% Increase in Dividend
- Wema Bank of Nigeria has declared its final dividend and has doubled the payout from the previous year
- The financial institution recorded an impressive performance and is set for a total payout of N21.4 billion
- The bank reported a pre-tax profit of N102.5 billion for FY 2024, a 134.79% increase from the previous year
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Wema Bank has declared a final dividend of N1.00 per share for the 2024 financial year, marking a 100% increase from the previous year’s payout.
The final dividend, which pertains to the period ending December 31, 2024, will be payable to shareholders whose names are recorded in the Register of Members as of the close of business on May 1, 2025.
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The announcement was made in a disclosure to the Nigerian Exchange (NGX) and signed by the company’s Secretary, Johnson Lebile.
According to the bank, the final dividend is subject to withholding tax and regulatory approval.
The payment, which will total N21.4 billion, is set for electronic distribution into shareholders' bank accounts on May 22, 2025.
Wema Bank emphasised that e-dividend registration is a prerequisite for receiving the payout, which coincides with the bank's Annual General Meeting (AGM) on the same day.
Part of the statement reads:
“We are pleased to reward our shareholders with a 100% increase in dividends, reflecting our strong financial performance.
“This increase is a testament to our robust profit growth, strategic investments, and commitment to delivering value.”
The dividend yield is calculated at 8.10%, based on a share price of N12.35.
The dividend also represents a final payout ratio of 24.42%, demonstrating the bank’s commitment to distributing a healthy portion of its earnings to shareholders, Punch reports.
Shareholders commend Weman Bank
The National Chairman of the Progressive Shareholders Association, Boniface Okezie, praised Wema Bank for delivering on its promise of rewarding shareholders, describing the improved 2024 dividend as highly commendable.
According to Okezie, the progressive dividend payout sends a strong signal about the bank’s solid management, operational strength, and positive market reputation.
He further characterised the proposed dividend as both generous and encouraging, urging shareholders to reinvest their earnings by fully subscribing to the bank’s upcoming rights issue when the capital-raising exercise begins.
Okezie also acknowledged Wema Bank’s successful repositioning and operational restructuring efforts, stating that these initiatives have paved the way for sustainable profitability and long-term growth.
He concluded that the latest achievements represent a win-win outcome for all stakeholders.
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Wema Bank's financial breakdown
Wema Bank’s impressive financial performance for FY 2024 was highlighted by a pre-tax profit of N102.5 billion, a remarkable 134.79% increase from the previous year’s N43.6 billion.
The bank’s retained earnings surged to N103.2 billion, up from N36.5 billion in 2023, and its interest income climbed to N354.6 billion, driven by loans and advances contributing N233.8 billion and investment securities at N113.6 billion.
Despite an 81% rise in interest expenses, which totalled N177.5 billion, the bank’s net interest income grew significantly, from N91.7 billion to N177.06 billion.
Core operating income also saw a substantial increase, reaching N234.2 billion, up from N122.4 billion in 2023.
Wema Bank CEO speaks on performance
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.
Zenith Bank announces massive profit
Legit.ng previously reported that Zenith Bank Plc announced it recorded gross earnings of N3.97 trillion in 2024, which is an 86% increase from N2.12 trillion in 2023.
The bank stated this in its audited financial results released on the Nigerian Exchange (NGX).
Zenith Bank's growth was driven by a 138% rise in interest income, bolstered by investments in high-yield government securities and an expanding loan book.
Article updated with additional information by head of business desk Victor Enengedi.
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