The enhanced rating is anchored in Wema Bank’s successful execution of strategic initiatives, particularly its recent rights issue, which has bolstered investor confidence and reinforced the bank’s capital base.
Strategic Capital Raising Supports Regulatory Compliance
As part of its broader recapitalization efforts, Wema Bank recently closed a N150 billion rights issue on May 21, 2025, and has announced plans to raise an additional N50 billion through a private placement. These moves are designed to align with the Central Bank of Nigeria’s (CBN) new minimum capital requirement of N200 billion for banks with national licenses.
At its May Annual General Meeting (AGM), which was held virtually, Wema Bank formally adopted a resolution to pursue additional capital-raising measures. The bank emphasized that these initiatives are not only aimed at regulatory compliance but are also central to ensuring long-term financial resilience and sustained growth in Nigeria’s evolving banking landscape.
A Week of Positive Rating Momentum
Agusto & Co’s upgrade marks Wema Bank’s third credit rating improvement in the span of one week, highlighting growing confidence in the institution’s financial trajectory.
Global rating agency Fitch Ratings recently upgraded the bank’s National Long-Term Rating to A–(nga) from BBB(nga), and adjusted its outlook from stable to positive. In the same assessment, Fitch affirmed Wema’s Long-Term Issuer Default Rating (IDR) at B-, citing improved financial stability and more promising growth prospects.
Similarly, GCR Ratings revised Wema Bank’s national scale ratings, upgrading them to BBB+(NG)/A2(NG) from BBB(NG)/A3(NG). The agency maintained a stable outlook, recognizing the bank’s strategic direction and operational soundness.
Bank Welcomes Market Confidence
In response to the upgrades, Wema Bank issued statements expressing appreciation and reaffirming its commitment to financial stewardship and customer-focused innovation.
“This milestone reflects our commitment to stability, growth, and excellence,” the bank said in a post on X (formerly Twitter), following the Fitch announcement.
On the GCR upgrade, Wema added: “This is a testament to our 80-year legacy of resilience, excellence, and trust. We remain committed to building a future full of possibilities.”
Wider Industry Trend of Strengthening Credit Profiles
Wema Bank is not alone in seeing improved credit metrics. In late May, Fidelity Bank Plc also received an upgrade from Fitch, with its National Long-Term Rating rising to A+(nga) from A(nga). The improved rating reflects Fidelity’s robust capital buffers, profitability gains, and a stable base of low-cost deposits.
Both banks’ progress points to a broader trend of capital strengthening and financial stability among Nigerian lenders as they respond proactively to regulatory changes and investor expectations.