Fitch Ratings, a global leader in credit ratings and research has affirmed the Long-term National Rating of Wema Bank at (BBB-).
According to the report, the banking industry will remain challenging considering low oil prices, slow growth, policy uncertainty and constraints regarding Foreign Exchange liquidity. As such, the industry could be impacted by asset quality deterioration and limited capital buffers, though Fitch expects the sector to remain profitable.
Following the rating, the Long-term Issuer Default Ratings (IDR) of Wema Bank remains Stable at (B-), as the rating continues to be driven by Wema’s Viability Ratings (VR). However, the bank does not expect any material change in its intrinsic creditworthiness.
In his response, the Managing Director of Wema Bank Plc, Segun Oloketuyi said: “The rating affirms the continued importance we place on risk management and the strengthening of our business models, as we position the Bank to be the major player within Nigeria’s Retail Banking Landscape”.
Wema Bank’s strength, which underpins its long and short-term ratings, include its strong risk management culture, low Non- Performing Loans (NPL) exposure, satisfactory liquidity levels and its limited exposure to FX related assets and liabilities.
The Bank’s affirmed rating further reinforces its resolve to remain a smarter Bank, driven by expertise, excellence and efficiency which is the strategic focus of the bank.