Rating Release

Agusto & Co. affirms the ‘Bbb’ rating assigned to Wema Bank Plc, with a stable outlook

The rating expires on 30 June 2024.

Agusto & Co. affirms the “Bbb” rating assigned to Wema Bank Plc (“Wema Bank” or “the Bank”) underpinned by the Bank’s strong retail franchise (particularly in the South-West region), improving profitability and good succession planning as reflected in its successful transition in management, the second in six years. However, offsetting these positive factors are the Bank’s low market share, elevated cost profile and the prevailing macroeconomic and regulatory headwinds. An ESG score of “2” has also been attached to the rating of Wema Bank, reflecting our view that environmental, social and governance issues have minimal contribution to the Bank’s credit rating.