Wema Bank's Ratings Upgraded by Agusto and Co, Reflecting Stable Outlook
Agusto and Co, a pan-African rating agency, has upgraded Wema Bank's ratings to 'A-' from 'Bbb+', affirming a stable outlook for the lender. This decision follows sustained profitability, improved operating efficiency, and a good liquidity profile, supported by strong shareholders' backing. The upgrade is the latest in a series of positive assessments, with all credit ratings conducted on Wema Bank in 2025 resulting in a rating upgrade.
Key Takeaways:
- Wema Bank's profitability has shown consistent improvement over the last three years, with a marked increase in profitability.
- The bank's liquidity profile is deemed good, with satisfactory refinancing capabilities.
- Environmental, social, and governance issues contribute minimally to Wema Bank's credit risk.
- The bank contributes positively to socially impactful sectors, with approximately 16% of its loan portfolio dedicated to projects such as agriculture, power, and education.
- Wema Bank's partnership with the Enterprise Development Centre (EDC) and Mastercard aims to train 50,000 women, highlighting the bank's commitment to community development and inclusion.
- Improved profitability and business growth are anticipated in the near term, supported by expanded capital.
Statistics:
- 80 years of impact for Wema Bank, marked by sustained growth and development.
- 16% of Wema Bank's loan portfolio dedicated to socially impactful sectors.
- 50,000 women to be trained through Wema Bank's partnership with the Enterprise Development Centre (EDC) and Mastercard.
- Sustained profitability over the last three years, with a marked improvement in profitability.
- Good liquidity profile, with satisfactory refinancing capabilities.
Sources:
- Agusto and Co
- Moruf Oseni, MD/CEO of Wema Bank