The Board of Directors of Wema Bank Plc (NGX: WEMABANK) has proposed a dividend of 4 kobo per 50 kobo ordinary share for the financial year ended 31 December 2020.
The proposed dividend which amounts N1,542,978,643.28 is subject to the approval of shareholders in the company’s next Annual General Meeting and appropriate withholding tax.
If approved, the dividend will be paid to shareholders whose names appear in the Register of Members as at the close of business on the 12th day of May 2021, according to the filing with the Nigerian Exchange.
On May 25, 2021, dividends will be paid electronically to shareholders who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts. Shareholders who are yet to complete the e-dividend registration are advised to do so.
According to the Bank, the payment will be made from the audited earnings of 2020 and not from the accumulated reserves in line with the regulatory policy.
Wema Bank Plc Registrar is Greenwich Registrars & Data Solutions Ltd. The e-dividend mandate form can be downloaded from the registrar’s website or on the Securities and Exchange Commission (SEC) website.
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In 2020, Wema Bank Plc gross earnings dropped to N81.4 billion from N94.9 billion in 2019. The profit after taxation declined to N4.6 billion in 2020 from N5.2 billion in 2019.
The Proposed dividend payout is 33% of the profit after tax.
At the close of trading on Tuesday the share price of Wema Bank rose by 8.77% to N0.62 per share.
The dividend yield at the current price will be 6.45%. The actual yield will be lower when the withholding tax and buy charges are taken into consideration.
Wema Bank Plc has 38,574,466,082 outstanding shares with a market capitalization of N23,916,168,970.84
About Wema Bank Plc
Incorporated in 1945 as a Private Limited Liability Company under the old name of Agbonmagbe Bank Limited, it commenced banking operations in Nigeria in the same year. Wema Bank subsequently transformed into a Public Limited Liability Company (PLC) in April 1987 and was listed on the floor of the Nigerian Stock Exchange (NSE) in January 1990. On February 5, 2001, Wema Bank Plc was granted a universal banking license by the Central Bank of Nigeria (CBN), thus allowing the Bank to provide the Nigerian public with a diverse portfolio of financial and business advisory services.
In 2009, the Bank underwent a strategic repositioning exercise which culminated in a decision to operate as a commercial bank with regional authorisation. Upon a successful turnaround, the Bank applied to the Central Bank of Nigeria (CBN) for and was granted a national banking license in 2015.
Wema Bank offers retail banking, SME banking, corporate banking, treasury, trade services and financial advisory to its ever-expanding clientele. Operating a network of over 150 business offices backed by a robust ICT platform across Nigeria, the bank committed to longterm sustainability in its business whilst maintaining the highest standards of social responsibility, corporate governance and diversity in our operations.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.