Wema Bank Drops by 12% as Investors Exit Huge Positions
Wema Bank Plc’s market value fell by more than 12% in the equities segment of the Nigerian Exchange (NGX), driven by significant share sell-offs.
The tier-2 lender market value shrank as record trading data showed a huge volume of Wema Bank shares were traded in the local bourse.
With the benchmark interest rate cut, the Central Bank has begun to shorten the carrot, and the earnings outlook for the industry has been projected to be affected.
With pre Q3 earnings sell pressure, Wema Bank’s share price declined sharply to N18 on Friday, down by 12.4% week-on-week from N20.55 the previous week.
The bank share price declined as 12.412 million units valued at N242.989 million exchanged hands in the local bourse, driven by sell-side actors. The negative trading activities reduced the market value of Wema Bank’s 21.430 billion shares outstanding by 12.4% week on week to N385.743 billion.
Since 2020, Wema Bank has been re-rated by 2643%, PAC Research said in an industry update last week. With the price decline, Wema Bank’s year-to-date return has moderated below 140%.
As of September 2025, fourteen banks, including Wema Bank, have successfully met the Central Bank of Nigeria’s recapitalization requirement. The bank raised more than N200 billion for its national license authorisation, via ₦150 billion rights issue in 2024.
The position exit happened as the market anticipates the third quarter earnings release to be strained as a result of the Central Bank expansionary policy that will trigger downward loan repricing.
The banking industry’s net margin is anticipated to decline, and some banks with positive net FX positions will be exposed to sustained appreciation of the naira.
Apart from this, the increased regulation is expected to put pressure on banks’ earnings, and post recapitalisation rivalry could exacerbate Tier-1 banks’ dominance. #Wema Bank Drops by 12% as Investors Exit Huge Positions Tinubu Orders FEC Committee to Crash Food Prices
