Fitch Ratings, a global leader in credit ratings and research has affirmed the Long-term National Rating of Wema Bank at BBB-.
In a statement, the Bank said: “This is reflective of the Bank’s stable outlook and continued viability, in spite of the challenging macro-economic environment”.
In Fitch’s opinion, the banking industry will remain challenging considering low oil prices, continued disruptions in oil production and constraints regarding the Forex liquidity. As such, the industry could witness a rise in non-performing loan (NPL) ratios, though Fitch expects banks to remain profitable in 2016. The rating agency affirmed Wema Bank’s Viability Rating (VR), showing a Stable Outlook.
The Long-term Issuer Default Ratings (IDR) of Wema Bank also remains Stable at B-, as the rating is driven by Wema’s Viability Ratings (VR). Wema Bank does not expect any material change in the Bank’s intrinsic creditworthiness.
Wema Bank’s strengths, which underpin its long and short-term ratings, include the bank’s strong risk management culture, low NPL exposure and good liquidity levels. The Bank’s affirmed rating further reinforces its resolve to remain a smarter and efficient Bank, driven by innovation and technology.
Segun Oloketuyi, the Managing Director of Wema Bank Plc, stated that the rating is an affirmation of the Bank’s continued transformation, risk culture and positioning, as one of the major players within Nigeria’s Retail Banking Landscape.