Herbert Wigwe could earn over $3.02 million from Access Bank dividend

Herbert Wigwe, Nigerian businessman and CEO of Access Bank Plc, could earn over N1.152 billion ($3.02 million) after the bank declared a N0.55 ($0.0014) dividend for 2020.

The board recommended a final dividend of N0.55 ($0.0014), bringing the total dividend to N0.80 ($0.0021) per share for 2020.

By calculation, 1.441 billion x N0.80 = N1.152 billion ($3.o2 million).

According to Market Screener, the bank recorded gross earnings of N764.7 billion ($2.007 billion), up by 14 percent from N666.8 billion ($1.8 billion) in 2019. Profit before tax rose by 13 percent to N125.9 billion ($330.45 million) from N111.9 billion ($293.7 million).

It earned well despite the high cost of operation in the COVID-19 pandemic. According to Wigwe, the bank’s “resilient business model ensured that the group adapted to accommodate the resultant macro-economic downturn and headwinds of the COVID-19 pandemic.”

Events in 2020

In January 2020, Nairametics reported that concerns were raised when the CEO sold 6.81 percent (84.46 million units) of his direct and indirect stake in an insider deal filed on the Nigerian Stock Exchange on 15th and 16th, respectively. The deals were worth N297.82 million.

However, Wigwe purchased 3,094,853 shares for N6.81 and another 50,000 shares at an aggregate price of N21.42 million ($56,208.47). Of the bank’s 15 board members, Wigwe holds the highest stake with 201.23 million direct shares and 1.24 billion indirect shares.

His indirect shares are held through United Alliance Company of Nigeria Ltd., Tengen Holdings (Mauritius) Ltd. and Trust and Capital Ltd. His combined shares are approximately 1.441 billion shares.

Wigwe joined the bank in 2002 from Guaranty Trust Bank and was later appointed group managing director on Jan. 1, 2014. Bank Naija estimated his 2020 net worth at around $68.5 million.