Agusto & Co. affirms Wema Bank Plc’s ‘Bbb-’ rating, with a stable outlook.
The rating expires on 30 June 2022.
Agusto & Co. hereby affirm the “Bbb-” rating assigned to Wema Bank Plc (‘Wema Bank’ or the ‘Bank’). The rating reflects the Bank’s growth in deposit liabilities, good liquidity position and experienced management team with a good understanding of the Nigerian banking industry. However, constraining these positive rating factors are the Bank’s sustained obligor concentration, low market share and subpar profitability ratios. Also factored into the rating is the impact of the fragile economic recovery and the harsh regulatory environment on the Bank’s performance.