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

Rating Category: Banks

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

Rating Release

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

The rating expires on 30 June 2023.

Agusto & Co. hereby upgrades the rating of Wema Bank Plc (“Wema Bank” or “the Bank”) to “Bbb”. The rating reflects the Bank’s moderate retail franchise, particularly in the South-West region and the well-experienced management team. We have also factored in Wema Bank’s improving profitability ratios, good liquidity profile and acceptable asset quality. However, offsetting these positive factors are the low market share, elevated cost profile, and prevailing macroeconomic and regulatory headwinds which restrains Wema Bank’s profitability metrics. An ESG score of “3” has also been attached to the rating of Wema Bank reflecting that environmental, social and governance issues have material impact on the assigned rating.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.
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