Agusto & Co upgrades Wema Bank to Bbb+ rating, Affirms Stable Outlook

Following a strong 2023 financial performance, Wema Bank, Nigeria’s innovative pioneer of Africa’s first fully digital bank, ALAT, has been upgraded by Agusto & Co to a Bbb+ rating with an ESG score of 2, confirming a stable financial outlook for the bank.

Agusto & Co, a leading Pan-African credit rating agency, elevated Wema Bank’s rating from BBB to BBB+, reflecting the bank’s robust financial health and enhanced capability to fulfil its commercial banking responsibilities.

The upgrade is supported by Wema Bank’s impressive FY 2023 financial results, which include a 196 per cent increase in Profit Before Tax (PBT) from N14.75 billion to N43.59 billion, a 220.4 per cent increase in Profit After Tax (PAT) from N11.21billion to N33.66billion, and a 70.63 per cent increase in Gross Earnings from N132.30billion to N225.75billion.

Additionally, loans disbursed rose by 53.64 per cent to N801.10 billion, and the cost-to-income ratio (CIR) improved from 80.1 per cent to 64.4 per cent.

Agusto & Co highlighted Wema Bank’s enhanced profitability, reduced impaired loan ratio, improved deposit mix, and strong shareholder support as key factors in the rating upgrade. The ESG score of ‘2’ signifies that environmental, social, and governance issues minimally impact the bank’s rating.

Commenting, Wema Bank’s MD/CEO, Moruf Oseni, expressed gratitude for the recognition, emphasizing the bank’s commitment to delivering exceptional value and optimum returns to all stakeholders, which is reflected in its financial performance and growth trajectory.