Wema Bank's Ratings Upgraded by Agusto and Co, Reflecting Stable Outlook

Strategic Insights -

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