Rating Release
Agusto & Co. hereby upgrades the rating of Wema Bank Plc to ‘Bbb+’; assigns an ESG score of 2 and a stable outlook.
The rating expires on 30 June 2025.
Agusto & Co. hereby upgrades the rating of Wema Bank Plc (“Wema Bank” or “the Bank”) to “Bbb+” underpinned by improved profitability despite macroeconomic headwinds, lower impaired loan ratio, better deposit mix, strong shareholders’ support as reflected in the successful rights issue exercise and perpetual bond issuance. However, the high cost-to-income ratio, rising funding costs, and raging macroeconomic headwinds suppress these positive factors. We have also attached an ESG score of “2”, reflecting our view that environmental, social, and governance issues have a minimal impact on Wema Bank’s rating.
