Nigerian multimillionaire banker Herbert Wigwe is set to receive N1.06 billion ($2.56 million) in dividends from his stake in Access Bank Plc, a Lagos-based pan-African financial services conglomerate.
The $2.56 million in dividends will be paid from the group’s retained earnings of N397.27 billion ($956.1 million) as part of the cash distribution approved by the board of directors.
Access Bank is Nigeria’s largest banking company by assets, with N11.7 trillion ($28.2 billion) in total assets, up from N8.68 trillion ($20.9 billion) the previous year. It is one of the most capitalized financial services organizations on the Nigerian Exchange, with a market capitalization of N348.34 billion ($839.22 million).
Wigwe, who played a key role in the growth and expansion of the pan-African banking group, holds a significant 4.27-percent stake, or 1,517,850,729 ordinary shares, in the company.
At the end of 2021, the leading financial services firm recorded a 51-percent rise in profit from N106 billion ($255.1 million) in 2020 to N160.2 billion ($385.6 million) at the end of 2021, driven by a 27-percent increase in gross earnings due to strong performance across its operational sectors.
Aside from the 22-percent rise in interest revenue and another 14.6-percent increase in non-interest income that enhanced earnings during the period, the 51-percent profit growth was also aided by sound financial and cost management.
While commenting on the financial performance, Wigwe stated: “Our diversified business model yielded positive sustainable results, guided by a robust risk management framework, as we grew the business cautiously and recorded sound prudential ratios.”
“This year’s results reinforce our resolve to generate sustainable returns despite challenging market conditions,” he added.
In line with the financial performance, the bank’s board of directors authorized a final dividend of N0.70 ($0.001685) per share, which, when coupled with the interim dividend of N0.30 ($0.000721) per share, brings the total payout to shareholders to N1.0 ($0.00241) per share.
In line with the board of directors’ decision, Wigwe will receive N1.06 billion ($2.56 million) in total distribution from the bank’s earnings when the dividend is paid on April 28.
Wigwe underscored that the bank’s planned transformation into a holding company will begin in the first half of 2022. As a result, Access Bank’s shares will be delisted from the Nigerian Exchange and Access HoldCo’s shares would be listed.
