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Wema Bank Posts $27.2 Million Profit in 2023

Wema Bank, partly owned by Nigerian gambling magnate Kessington Adebutu, reported extraordinary financial success in 2023, with profits exceeding $27 million.

This increase, fueled by exponential growth in interest and fee income, as well as significant gains from foreign exchange revaluations, cemented the bank’s position as a dominant player in Nigeria’s banking sector.

The group’s recently revealed financial figures show a 217 percent increase in income, from N11.35 billion ($8.52 million) in 2022 to N35.99 billion ($27.2 million). This astonishing profit jump was driven by a significant increase in interest income, which went from N108.04 billion ($81.2 million) in 2022 to N185.64 billion ($139.15 million) in 2023.

Additionally, fee and commission income increased significantly from N16.59 billion ($12.43 million) in 2022 to N24.96 billion ($18.7 million). The group’s earnings increased significantly due to foreign exchange revaluation, totaling N13.6 billion ($10.2 million), up from N1.59 billion ($1.2 million) the previous year.

Wema Bank, one of Nigeria’s premier indigenous banks, has led the way in financial innovation. The bank’s pioneering efforts include the establishment of Africa’s first totally digital bank, ALAT. With decades of experience and perseverance, Wema Bank remains a pillar of Nigeria’s financial environment.

In recent years, the lender has benefited from Kessington Adebutu’s strategic backing. The CEO of Nigeria’s oldest gaming company, Premier Lotto Limited, holds a 28.09 percent ownership in Wema Bank through Neemtree Limited, a special purpose vehicle established in 2013 to acquire shares in specific organizations. Adebutu’s daughter, Abolanle Matel-Okoh, owns a 4.54 percent ownership in the banking organization.

The bank’s strong financial performance in 2023 increased its assets from N1.44 trillion ($1.076 billion) on December 31, 2022 to N2.25 trillion ($1.69 billion) by December 31, 2023. Its retained earnings increased from N11.45 billion ($8.55 million) to N36.59 billion ($27.33 billion), firmly establishing it as one of Nigeria’s most profitable financial service companies.

Wema Bank’s board of directors, boosted by its financial health, has suggested a dividend of N0.50 ($0.000375) per share to be paid from the retained earnings account. This is consistent with the requirements outlined in the CBN circular on internal capital generation and dividend payout ratios, demonstrating the bank’s commitment to rewarding its shareholders despite its extraordinary financial success.

Wema Bank’s remarkable fiscal performance in 2023 demonstrates its resilience, creativity, and consistent dedication to excellence in the Nigerian banking industry. With a solid foundation and smart alliances, the bank continues to pave the road for long-term growth and success in the ever-changing financial environment.

 

 

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