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Wema Bank Plc has said that it will soon return to trajectory of dividend payment even as it appealed for understanding over the inability of the bank to propose a dividend in the last couples of years.
The assurance and appeal was made by the Managing Director Mr Segun Oloketuyi, while responding to question at the bank Annual General Meeting (AGM) on Wednesday May 9, 2018, in Lagos.
Oloketuyi who disclose that the bank has left its deficit position and return to profitability, commended the way shareholders took interest in the bank’s improved performance for the year ended December 31, 2017, explaining that he did not think that any board or management will like to come for a shareholders meeting without a dividend, because the essence of investment is to get returns.
He pointed out that since shareholders gave the board of directors approval to clear the bank balance sheet that contained negative earnings, the steps towards dividend consideration for shareholders has not been easy due to several regulatory processes that are required, adding that there are plans to resume paying of dividend that will be sustainable.
On his part, chairman of the board Mr Babatunde Kasali who was chairing the meeting for the first time assured that “as we go into 2018, we will continue to reinforce our commitment towards balance sheet optimization and income generation, efficiency and value creation for our esteemed customers and shareholders”
The bank, it will be recall grew it retained earnings from a dip of N39.2 billion to a profitable level of N4 billion in the year under consideration.
Other major highlight of the bank 2017 financial scorecard shows that gross earnings grew from N54,36 billion in 2016 to N65.27 billion in 2017. Interest income grew by 19.10 percent to N53.07 billion as against N44.56 billion reported in 2016. Net interest income also increased from N18.65 billion in 2016 to N19.77 billion in 2017.
Trading income for the reporting period grew by over 100 percent to N4.98 billion as against N2.12 billion in 2016. Profit after tax decreased marginally from N2.56 billion in 2016 to N2.26 billion in 2017. Widely reputed as the longest surviving and most resilient indigenous bank in Nigeria, the bank has over the years, diligently offered a range of value adding banking and financial advisory services to the Nigerian public.
Incorporated in 1945 as a private Limited Liability Company under the old name of Agbonmagbe Bank Limited, it commenced banking operations in Nigeria the same year. The bank later transformed into a Public Limited Company. The bank later transformed into public Limited Company in April 1987 and was listed on the floor of Nigerian Stock Exchange (NSE) in January 1990.
In 2009 the bank underwent a strategic repositioning exercise which culminated in a decision to operate as a commercial bank with regional authorization. Upon the successful turnaround, the bank applied to the Central Bank of Nigeria (CBN) and was granted a national license in 2015.
Photo Caption: from left: Oluwole Ajimisinmi, Company Secretary; Segun Oloketuyi, MD/CEO; Tina Vukor-Quarshie, Non-Executive Director; Abubakar Lawal, Non-Executive Director, all of Wema Bank at the bank’s 2017 Annual General Meeting in Lagos on Wednesday.
