Kessington Adebutu’s stake in Wema Bank increased by $3.26 million, demonstrating the bank’s robust performance on the Nigerian Exchange (NGX). Kessington Adebutu holds a 28.25% stake in Wema Bank through Neemtree Limited, totaling 3.6 billion shares in the institution.
Following a 23.44% surge in Wema Bank’s share price, the bank’s market capitalization surpassed $100 million, delivering strong returns despite the Naira’s depreciation. Adebutu, a prominent Nigerian businessman and founder of Premier Lotto, has seen his position among Nigeria’s wealthiest individuals solidify with this $3.2 million increase in his investment.
The value of Adebutu’s stake rose by N5.45 billion ($3.26 million) over the last 53 days, reflecting Wema Bank’s recent growth. This gain comes after a prior decline of $2.82 million in his shares between May 8 and 24, when his stake fell from $19.58 million to $16.71 million.
As one of Nigeria’s leading financial institutions, Wema Bank is known for launching ALAT, Africa’s first fully digital bank, and for its resilience in the financial sector. Its share price on the NGX rose from N6.40 ($0.00383) on September 18 to N7.90 ($0.00473), pushing Adebutu’s stake to N28.70 billion ($17.19 million), up from N23.25 billion ($13.93 million).
Wema Bank’s shares have gained 42.34% this year, positioning it as a top performer on the NGX and providing shareholders with strong returns. However, foreign investors have experienced a 24.82% loss in dollar terms due to the Naira’s depreciation, highlighting the impact of currency volatility on Nigerian equities. Consequently, a $100,000 investment in Wema Bank at the start of the year would now be worth $75,183, reflecting a loss of $24,817 due to exchange rate effects.