Wema Bank: Three shareholders earned 63% of N50bn dividend payout

Just three ultra-high-net-worth investors emerged as the primary beneficiaries of Wema Bank Plc’s massive dividend distribution for the year 2025.

Out of an aggregate N50.12 billion total dividend payout approved for the financial year, this elite trio successfully cornered an astonishing N31.43 billion—representing roughly 63 percent of the entire dividend pool.

A deep dive into the lender’s share register reveals that Neemtree Limited which owns 11.872billion units or 29.59 percent equity stake in Wema Bank earned N14.84 billion as dividend from Wema Bank. The duo of Abolanle Matel-Okoh and Yewande Zaccheaus are representatives of Neemtree Limited on the Board of the bank.

SW8 Investment Limited which owns 10.778billion units or 26.87 percent of equity stake in Wema Bank was paid N13.47 billion as dividend. Adeyemi Adefarakan is the representative of SW8 Investment Limited on the Board of Wema Bank Plc.

Another major shareholder is Odu’a Investment Company which owns 2.497billion units or 6.23 percentage equity stake in Wema Bank. Odu’a Investment Company was paid N3.12 billion as Wema Bank dividend.

These trio massive dividend earnings totaling N31.43 billion shines a glaring spotlight on the institutional heavyweights who quietly dictate the financial fortunes of the veteran lender.

Regarded as Nigeria’s most resilient bank and the longest surviving indigenous Financial Institution in Nigeria, Wema Bank Plc has over the years, diligently offered a range of value-adding banking and financial advisory services to the Nigerian public for 80 years.

Wema Bank’s aggressive push is backed by a rapid financial transformation over the last three years, culminating in a historic full year (FY) 2025 performance.

The bank’s profit surged from N42 billion to N102.51 billion and further to N221.9 billion in the 2025 financial year, representing a near fivefold increase over the three-year period.

At its Annual General Meeting held in May, the shareholders unanimously resolved that the bank pays a dividend of N1.25kobo per share on May 20 from the profit of the financial year ended December 31 to members on the register of the bank at the close of business on April 29, 2026. Wema Bank has 40.118billion shares outstanding.

While addressing shareholders during the lender’s annual general meeting in Lagos, Moruf Oseni, managing director, Wema Bank Plc noted that they are working hard to “deliberately and intentionally position” Wema among Nigeria’s top-tier banks, with profitability tripling over three years.

He cited the sharp profitability trajectory and fresh capital recently raised as the foundation for an accelerated growth push.

On dividends, Oseni struck a cautious but reassuring tone, noting that while the bank remains committed to consistent dividend payments — a sharp turnaround from years of no dividend distribution — management is deliberately conserving capital for future opportunities.

While thousands of retail investors split the remaining N18.7billion or 37 percent, this lopsided windfall underscores the profound influence and tightly held ownership structure driving the bank’s top-tier share register.

The bank’s stock closed at N29.7 on Monday July 6, rising this year by 45.59 percent. The stock rose to N30 as at 2 pm on Tuesday July 7, nearing its 52-week high N36 as against a 52week low of N15.45.

In its audited financial result for the full year ended December 31, 2025, Wema Bank Plc reported a profit before tax (PBT) of N221.8 billion, representing a 116.44 percent increase from N102.5 billion in 2024, mainly driven by growth in interest income, which forms the bulk of its top line. Interest income rose to N576 billion from N354.6 billion, with loans and advances contributing 60.4 percent, investment securities 35.5percent, and cash and cash equivalents making up the remainder.

Along with income from its non-interest activities, especially fees and commissions, the bottom line strengthened, with earnings per share rising to N7.12 from N4.83.

The interest income of N576.07 billion was largely driven by earnings from loans and advances of N348.2 billion, investment securities of N204.4 billion, and cash and cash equivalents of N23.3 billion. Operating expenses increased to N198.7 billion, leaving a pre-tax profit of N221.8 billion, up 116.44 percent.

After an impairment of N25.6 billion, net interest income after impairment settled at N335.2 billion, up from N155.4 billion in the previous year. After N27.4 billion in tax, the post-tax profit settled at N194.4 billion. The bank also earned N8.3 billion from trading income and N392.5 million from other sources, bringing total operating income to N420.6 billion, up from N234.2 billion the previous year.

On the balance sheet, total assets jumped to N5.07 trillion from N3.5 trillion, with loans and advances to customers at N1.7 trillion, forming the largest portion of the asset base. (BusinessDay)