Wema Bank Rating Upgraded to Bbb+ by Agusto
A Pan-African credit rating agency, Agusto & Co, has upgraded Wema Bank’s rating from BBB to BBB+, following the bank’s strong 2023 financial performance.
According to Agusto & Co., “the upgrade of Wema Bank’s rating to Bbb+ is underpinned by improved profitability despite macroeconomic headwinds, a lower impaired loan ratio, a better deposit mix, and strong shareholders’ support, as reflected in the successful rights issue exercise and perpetual bond issuance.
Wema Bank grew pretax profit by 196 percent, from N14.75 billion to N43.59 billion. The results translated to higher pre-tax return on average equity (ROE) and pre-tax returns on average assets (ROA) from 21.5 percent to 43.9 percent and one per cent to 2.1 percent, respectively.
The tier 2 lender’s net profit surged by 220.4 percent from N11.21 billion to N33.66 billion, a 70.63 percent increase in gross earnings from N132.30 billion to N225.75 billion. It recorded an increase in loans disbursed from N521.43 billion to N801.10 billion and a reduction in the cost-to-income ratio (CIR) from 80.1 percent to 64.4 percent due to significant earnings growth despite economic fluctuations.
The bank also posted a 220.53 percent increase in earnings per share from N87.2 to N279.5, among other indices. “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.”.
Mr Moruf Oseni, Wema Bank’s Managing Director, expressed the bank’s gratitude to Agusto & Co for acknowledging the strong progress made by the bank.
“Wema Bank is on a journey to the top, and we are driven by a commitment to delivering exceptional value, exceeding expectations, and providing optimum returns to every stakeholder—shareholders, customers, employees, and partners alike.
“It is this commitment that has reflected positively in our numbers and will propel our growth over the next decade.”. #Agusto Upgrades Wema Bank Rating to Bbb+ on Improved Performance Nigeria Eurobond Slumps after CBN Resumes OMO Auction
