Wema Bank Plc’s stocks emerged as the best-performing financial stocks on the Nigerian Exchange during the 2022 financial year.
In a report titled “The Best Performing Stocks in Nigeria in 2022,” Nairametrics compiled and analyzed the best-performing stocks in 2022, comparing their share prices as of December 31st, 2021, and December 30th, 2022. The analysis considered all 159 publicly listed companies during the period.
According to the report, 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% increase in gross earnings in the first nine months of 2022 and a 31% increase in post-tax profit. Investors rallied around the bank’s stocks despite a general downturn in most banking stocks during the year.
Similarly, 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 suggest a better dividend payout to shareholders. The Nigerian equity market rallied by 19.98% in 2022, higher than the 6.07% recorded in the previous year.
After many years of dividend freezes, the bank has resumed dividend payments to shareholders in the last three years. Wema has modernized its processes and has increasingly leveraged digital technologies to serve its customers, boosting efficiency and productivity in the process.
Additionally, the bank enjoyed a profitable year in terms of its financial performance 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. Wema Bank 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. Meyer Plc, Thomas Wyatt Plc, and Academy Press Plc, among others.