Agusto & Co. has upgraded the long-term rating of Wema Bank Plc to ‘A’ from ‘A-’, while affirming its short-term rating at ‘A1’. The rating agency cited improved profitability, stronger liquidity, and robust shareholder support for its upgrade.
The upgrade was disclosed in the agency’s 2026 abridged entity rating report and follows the bank’s successful capital raise, which pushed its capital base above the N200 billion regulatory threshold for commercial banks with national authorization.
According to Agusto & Co., the rating action reflects the bank’s stronger earnings performance, sound liquidity position, and enhanced capitalisation.
The agency stated, “Agusto & Co. upgrades the ratings assigned to Wema Bank Plc (“Wema Bank” or “the Bank”) from ‘A-’ to ‘A’ (long term) and ‘A1’ (short term). The ratings upgrade is anchored on the improved profitability, good liquidity profile and strong shareholders’ support as reflected in the successful capital raising exercise.”
Despite the positive rating action, Agusto & Co. noted that rising impaired loans and persistent macroeconomic pressures remain key downside risks. The agency, however, assigned a stable outlook to the bank.
The upgrade comes amid a significant improvement in the bank’s capital position. Shareholders’ funds rose by 141.9% year-on-year to N620.5 billion as of December 31, 2025, supported by a N193.5 billion capital injection during the year.
The report also gave the lender an ESG score of ‘2’, indicating that environmental, social, and governance factors currently have minimal impact on the bank’s credit profile.
