The equity stake of Nigerian gambling magnate Kessington Adebutu in Wema Bank Plc has gained $6.59 million (N2.71 billion) in 23 days.
Wema Bank is pioneering Africa’s first fully digital bank, ALAT, and is one of Nigeria’s most resilient banks with decades of experience in the financial services sector.
As of 4:30 PM (UTC), July 14, shares in the financial services provider on the Nigerian Stock Exchange were valued at $0.00195 (N0.80), down 123 basis points compared with its opening price of $0.00197 (N0.81) yesterday morning.
Shares in the bank have surged by 45 percent since June 21, as bargain hunters and value investors continue to acquire stakes in the bank, bidding its shares up by 45 percent to yesterday’s price of $0.00195 (N0.80) per share.
The bullish attitude toward the bank’s shares can be attributed to its strong performance in Q1 2021, as quarterly financial results caught the attention of financial analysts and investors alike.
In Q1 2021, Wema Bank reported that its profits increased by 33.5 percent to $3.16 million (N1.30 billion) from $2.38 million (N977.30 million) in Q1 2020. The increase took place on the back of a rise in consumer spending that is returning to pre-COVID-19 levels as the economy revs up for recovery.
In addition, a 25-percent drop in the bank’s interest expenses, which offset a six-percent decline in gross earnings, enhanced its earning power during the quarter.
Kessington Adebutu, the founder and CEO of Nigeria’s oldest and leading gaming company Premier Lotto Limited, holds a 28.09-percent stake in Wema Bank through Neemtree Limited, a special purpose vehicle incorporated in 2013 to acquire shares in targeted organizations.
The market value of his equity position in the bank has increased by $6.59 million (N2.71 billion) in 23 days.
Research by Billionaires.Africa revealed that the value of his stake in Wema Bank rose from $14.50 million (N5.60 billion) to $21.09 million (N8.67 billion) between June 21 and July 14.
