Three years ago, Wema Bank posted a profit before tax of ₦14.75 billion, a modest figure for a lender founded in 1945. In 2025, that same institution reported ₦221.9 billion in pre-tax earnings, a figure that would have seemed implausible earlier this decade.

That transformation has now drawn a formal endorsement from one of Nigeria’s most influential credit assessors. Agusto & Co. upgraded Wema Bank’s long-term rating to “A” and its short-term rating to “A1,” both carrying a stable outlook.

For a bank that held a “Bbb-” rating with a negative outlook nearly six years ago, the leap demands attention. But the same agency that praised the bank’s profitability also flagged rising impaired loans and macroeconomic pressures as counterweights to the good news.

Agusto & Co. upgrades Wema Bank to “A” on profitability and capital strength

The rating upgrade from Agusto & Co. rests on three pillars: improved profitability, a solid liquidity profile, and strong shareholder support through a successful capital raising exercise. The rating expires on June 30, 2027, giving the bank a defined runway to sustain performance.

The agency also assigned a “2” ESG score, indicating that environmental, social, and governance factors have minimal impact on Wema’s creditworthiness. This marks the third consecutive upgrade for Wema from Agusto, following a jump from “Bbb+” in June 2024 to “A-” in June 2025.

How Wema Bank’s ₦200 billion capital raise reshaped its balance sheet

A major catalyst behind the upgrade is Wema Bank’s completion of the Central Bank of Nigeria’s recapitalization mandate. The bank executed a ₦150 billion rights issue between April and May 2025, then followed with a ₦50 billion special placement, bringing total qualifying capital to ₦264.7 billion, Daily Trust reported. That figure sits 32% above the CBN’s ₦200 billion minimum for national banks.

Wema Bank by the numbers:

• Profit before tax in 2025: ₦221.9 billion, a 116% increase year-over-year from ₦102.5 billion

• Profit after tax: ₦194.46 billion, up 125.4% from ₦86.29 billion in the prior year

• Total assets: ₦5.07 trillion, crossing the ₦5 trillion threshold for the first time ever

• Customer deposits: ₦3.28 trillion, a 30% increase from the prior financial year

The CBN formally confirmed Wema’s compliance in April 2026, placing it among only 10 national banks that exceeded the required capital threshold. The profitability trajectory is equally notable, with interest income rising 62.7% to ₦577 billion in 2025, the bank’s audited annual report showed.

Wema Bank’s CEO sets sights on Nigeria’s tier-one banking league

The rating upgrade arrives alongside ambitious signals from Wema Bank’s leadership. Managing Director and CEO Moruf Oseni has publicly targeted tier-one status within a two-to-three-year timeline, backed by the bank’s strengthened capital position.

“As we enter 2026, Wema Bank stands stronger, better capitalised, and strategically positioned for sustainable growth.” — Moruf Oseni, Managing Director and CEO, Wema Bank, speaking at the bank’s annual general meeting, TheWhistler reported

During the bank’s 2025 earnings conference call, Oseni said the institution would pursue both organic growth and potential acquisitions to reach that milestone, Nairametrics reported. Chief Risk Officer Sylvanus Eneche added that the bank plans to deploy capital selectively into power, mining, and maritime sectors while maintaining risk discipline.

Rising impaired loans and macro headwinds temper the upgrade’s optimism

Agusto & Co. explicitly noted that rising impaired loans and persistent macroeconomic pressures offset the positive factors behind the upgrade. The agency’s language suggests the stable outlook is conditional, not assured.

The concern extends across Nigeria’s entire banking sector. Impairment charges hit ₦3.2 trillion in 2025 audited financials, a 39% jump from ₦2.3 trillion in 2024, following the CBN’s decision to end COVID-era forbearance measures, BusinessDay reported. The industry-wide non-performing loan ratio rose to approximately 7% by early 2025, according to BusinessDay’s analysis, breaching the CBN’s 5% regulatory ceiling.

Matilda Adefalujo, a banking and fixed income analyst at Meristem Research, noted that the sector is undergoing a balance sheet reset as post-pandemic regulatory relief unwinds, forcing lenders to recognize previously hidden risks and absorb credit losses, BusinessDay reported.

Wema Bank’s Q1 2026 results suggest the growth runway is holding

Early indicators from 2026 suggest the upgrade’s foundation is intact. The bank’s first quarter results showed pre-tax profit of ₦72.56 billion, a 76% increase from ₦41 billion in Q1 2025, Nairametrics reported. Interest income drove the gains, rising 63.5% to ₦179.96 billion on stronger asset yields.

If sustained, Nairametrics estimates the bank’s 2026 full-year profit could exceed the 2025 figure by roughly 29%. Total assets grew modestly to ₦5.23 trillion by March 2026, while customer deposits ticked up to ₦3.41 trillion.

What Wema Bank’s upgraded rating signals for depositors and investors

For depositors, the “A” long-term rating signals that Wema Bank has a strong capacity to meet its financial obligations when they come due. It is not a guarantee, but it is an independent assessment that the bank’s financial health has improved materially over a sustained period.

For investors, the stock’s performance tells part of the story. Wema Bank delivered a 124% share price gain in 2025 and has added another 76.5% so far in 2026, Nairametrics reported. The Agusto upgrade could reinforce positive momentum, but the impaired loan warning means asset quality disclosures in the coming quarters deserve close scrutiny.

The broader takeaway is that Wema Bank’s transformation from a struggling mid-tier lender into a credibly rated national bank is measurable and real. Whether that trajectory can hold in what Agusto itself describes as a persistently pressured macro environment is the question that will define the next chapter.