Agusto & Co, a Pan-African credit rating agency, has upgraded Wema Bank’s rating from BBB to BBB+, following the bank’s strong 2023 financial performance.

Agusto & Co, a leading provider of industry research and knowledge in Nigeria and Sub-Saharan Africa, confirmed a stable outlook for the bank.

This was disclosed in a statement issued by the bank on Thursday. Among the outstanding results achieved by Wema Bank was a 196 per cent increase in Profit Before Tax (PBT) from N14.75 billion to N43.59 billion.

This translated to higher pre-tax returns on average equity (ROE) and assets (ROA), from 21.5 per cent to 43.9 per cent and one per cent to 2.1 per cent, respectively.

The bank also recorded a 220.4 per cent increase in Profit After Tax (PAT) from N11.21 billion to N33.66 billion, a 70.63 per cent increase in gross earnings from N132.30 billion to N225.75, 53.64 per cent.

It recorded an increase in loans disbursed from N521.43 billion to N801.10 billion and a reduction in cost-to-income ratio (CIR) from 80.1 per cent to 64.4 per cent due to significant earnings growth despite economic fluctuations.

The bank also posted a 220.53 per cent increase in earnings per share from N87.2 to N279.5, among other indices.

According to Agusto & Co, the upgrade of Wema Bank’s rating to Bbb+ is underpinned by improved profitability despite macroeconomic headwinds, lower impaired loan ratio, better deposit mix, strong shareholders’ support as reflected in the successful rights issue exercise and perpetual bond issuance.

“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,” said the rating firm.

Moruf Oseni, Wema Bank’s managing director, said the bank “is on a journey to the top.”

(NAN)