Nigerian gaming billionaire Kessington Adebutu and his daughter Abolanle Matel-Okoh are scheduled to receive a N1 billion ($2.42 million) dividend. This will come from their share in Wema Bank Plc, one of Nigeria’s biggest indigenous banks, after revenues nearly doubled in 2020.
In addition, Wema Bank is also the founder of Africa’s first entirely digital bank, ALAT, and one of Nigeria’s most resilient institutions with decades of expertise in the financial services business.
Kessington Adebutu is the founder and CEO of Premier Lotto Limited, Nigeria’s oldest and largest gaming firm. He will receive N866.84 million ($2.08 million) in dividends from his 28.1 percent interest in Wema Bank. Also, his daughter, Abolanle will receive N140 million ($338,000) from her 4.5 percent share.
As part of a cash distribution agreed by the board of directors, Adebutu and his daughter would receive a $2.42 million dividend from their investment in the financial services firm. The dividend will be paid from the bank’s retained earnings, which amount to around N11.02 billion ($26.5 million).
The dividend, which will come with other shareholders’ payouts, will be deposited electronically into their account on May 10. This reflects a 98.4-percent increase over the $1.22-million dividend they earned last year, according to Wema Bank’s corporate statement.
Wema Bank’s remarkable financial success at the end of 2021 may be attributable to the 98.4-percent increase in dividend distribution. The financial institution continues to utilise the continuous rebound across all of its operational areas to create value for its shareholders despite the effect of the COVID-19 pandemic.
Because of growth in gross revenues and a mix of revenue optimisation and cost-cutting tactics undertaken by management, the bank’s profit after tax virtually quadrupled from N4.58 billion ($11.01 billion) in 2020 to N8.93 billion ($21.5 million) by the end of 2021.