Wema Bank Valuation Rises 10% to N44.10bn
Wema Bank

Wema Bank Valuation Rises 10% to N44.10bn

Wema Bank Plc ranks among the top performers in the equities segment of the Nigerian Exchange. The tier-2 bank share price spiked 10% to N3.43 on Friday, from N3.12 in the previous day. In the third quarter of 2022, the mid-tier lender improved its loan book amidst a high-interest rate environment.

Its unaudited financial statement for a 9-month period in 2022 shows that loans and advances to customers jumped to about N462 billion from N418.864 billion at the beginning of the year. Its customer deposits also increased to N1.079 trillion from N927 billion

With 12.858 billion outstanding shares, Wema Bank is now worth N44.103 billion to the equities segment of the Nigerian Exchange which printed at a market capitalisation of N26 trillion on Friday.

Wema Bank Plc. has 37.44% free float in the local bourse as of the third quarter with 51.53% strategic shareholding records. Detail shows that government has 8.03% interest while directors own 5.67% in the bank.

Strategic shareholding interest includes SW8 Investment company which owns 14.90%, Petrotrab has 8.54% interest and Neemtree Limited holds 28.09% of its outstanding shares.

Oyo state government has an insignificant interest in Wema Bank for the third quarter of 2022. Ogun and Osun states have 1.73% interest individually. Fountain has 1.49% and Odua Investment 3.09%.

In the third quarter earnings result, Wema Bank Plc recorded the highest topline increase of 51.17% year on year to N93.35 billion, up from N63.077 billion in the comparable period in 2021. 

The bank’s shareholders approved a final Dividend of 24k per ordinary share following a healthy earnings performance in the financial year 2021. READ: Equity Investors Milk Stock Market Top Performers

Payroll or personnel expenses increased significantly in the 9-month financial year 2022 result, from N12.381 billion to N15.317 billion amidst the worsening headline inflation rate in Nigeria.

Its latest unaudited financial statement shows the mid-tier lender’s profit settled at N8.179 billion, which is a strong improvement when compared with N6.235 billion reported in a similar period in 2021. 

Its financial statement showed that there are litigation claims against the Bank as of 30 September 2022 amounting to N7,034,305,000.00 from N7,192,315,919.00 in December 2021. The bank said these litigations arose in the normal course of business and are being contested.  # Wema Bank Valuation Rises 10% to N44.10bn