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Wema Bank proposes 50k dividend per share as profit before tax hits N43.59bn

Wema Bank unveils 9 nominees for  ‘She Empowers Her” Award

Wema Bank has proposed a dividend per share of 50kobo for the 2023 financial year, up from 30kobo in 2022 and deposit growth of 60 percent to N1,860.57bn from N1,165.93bn also reported in 2022.

The bank also recorded a full-year 2023 profit before tax of N43.59 billion, up from N14.75 billion previous year, an increase of 196 percent, according to its financial statement.

“Return on Equity (ROAE) of 39.28 percent, NPL of 4.31 percent, and N40 billion first tranche of capital raise awaiting final regulatory approvals,” a statement from the bank said.

Moruf Oseni, managing director/CEO of the bank, commenting on the results, said, “2023 showcased a revitalised Wema Bank as evidenced by the considerable improvements in our numbers. The performance is headlined by impressive improvements in profit before tax which grew strongly by 196 percent.”

He noted that the growth of gross earnings by 72 percent, total assets by 56 percent and earnings per share at 279.5 kobo shows the core improvements to the bank’s balance sheet.

“In addition, our cost to income ratio at 64.37 percent has witnessed significant improvement from the previous period.

“We also completed our N40bn capital raise exercise (results awaiting final verification by regulators). This exercise actively positioned us for the new capital licensing requirements of the Central Bank of Nigeria. Wema Bank will accelerate its capital management plans and ensure we embark on the journey to raise the required capital as quickly as possible.”

Oseni added that the bank would be proposing a dividend per share of 50 kobo to its shareholders at the next annual general meeting.

“This is in line with the bank’s capital conservation strategy and to ensure that it continues to provide returns to its shareholders in anticipation of additional capital raises scheduled for later this year.

“We are satisfied with the bank’s performance in the first year of the new leadership team, as we move in a strong growth trajectory. Our target remains clear, we want to become a top-tier bank in the industry powered by digital excellence, we have carved a niche for ourselves with ALAT as a retail platform, but we are now positioning the enterprise as the intelligent platform for all financial services.

“We have partnered with the Federal Government on upskilling two million MSMEs, provided engagement platforms for all NYSC members and are now implementing partnerships in health, education, women empowerment and in the green economy.

“In the months ahead, we would be developing platforms and supporting initiatives that prioritise the needs of our customers, leveraging technology in solving problems across all sectors,” Oseni noted.