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By Omodele Adigun
Wema Bank Plc emerged as best-performing financial stock on the Nigerian Exchange (NGX) during the 2022 financial year.
In a report titled “The Best Performing Stocks in Nigeria in 2022,” compiled and analysed by Nairametrics, Wema Bank’s share price appreciated by a whopping 441.7 percent. This helped it to close the 2022 year at N3.9, down from the 72 kobo recorded at the end of 2022.
The bank recorded a healthy 51 per cent increase in gross earnings in the first nine months of 2022 and a 31 per cent increase in post-tax profit. Investors rallied around the bank’s stocks despite a general downturn in most banking stocks during the year.
In a related development, Wema Bank declared a final dividend of 24 kobo per ordinary share to its shareholders in 2021.
This fuels speculation that increased profitability in 2022 could mean a better dividend payout to shareholders. The Nigerian equities market rallied by 19.98 per cent in 2022, higher than the 6.07 per cent recorded in the previous year.
After many years of dividend freeze, the bank resumed dividend payment to shareholders three years ago. Wema has modernised its processes and has increasingly leveraged digital technologies to serve its customers, boosting efficiency and productivity in the process.
Additionally, its has enjoyed a profitable year in terms of its financial and equity performance. Nairametrics ranked the bank as the best-performing commercial bank in the first half of 2022 based on metrics from its financial statements even as it also won the “Highest Dividend Yield” award at the Pearl Awards in 2022.
Multiverse Mining Company was another of last year’s best-performing stocks followed by Meyer Plc, Thomas Wyatt Plc and Academy Press Plc among others.
