Banking
Fitch Affirms Wema Bank at ‘B-‘
By Dipo Olowookere
Fitch Ratings has affirmed Wema Bank Plc’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a stable outlook, while the bank’s National Long-Term Rating was also affirmed at ‘BBB-(nga)’.
Fitch said the stable outlook reflects the base case expectation that Wema Bank’s credit profile is unlikely to change significantly over a one-to-two year period.
The financial institution operates exclusively in Nigeria, where it has a small franchise, accounting for just 1% banking system assets at end-2017.
According to a statement, the IDRs of Wema Bank are driven by its standalone creditworthiness, as defined by its Viability Rating (VR). Wema’s VR, as with that of other Nigerian banks, is highly conditioned by Nigeria’s operating environment, with the fragile economic recovery restraining banks’ growth prospects and asset quality.
It was said that the lender’s VR further reflects a small franchise, weak profitability, low capitalisation relative to peers’, a weak funding profile and potential deterioration of asset quality metrics.
The company’s impaired loans (stage 3 loans under IFRS 9) ratio (3.4% at end-1H18) is considerably lower than peers’. However, its stock of stage 2 loans is the highest among rated Nigerian banks at 40% of gross loans at end-1H18, which may put pressure on future earnings and loss absorption capacity if they migrate into stage 3. Reserve coverage of impaired loans (78% at end-1H18) declined in 1H18, but remains adequate.
As with other Nigerian banks, Wema Bank is exposed to large credit concentrations. The 20 largest loans measured at 49% of gross loans and 220% of Fitch Core Capital (FCC) at end-1H18.
The bank is also exposed, albeit less than peers, to the oil sector, which accounted for 20% of gross loans at end-1H18 and has a considerably lower proportion of lending in foreign currency (11% at end-1H18) than peers, which we view positively.
Profitability is weak, but broadly in line with most similarly-sized peers’. Weak profitability metrics reflect a low net interest margin, given a high cost of funding that is reflective of its more expensive deposit base. Wema Bank is investing heavily in digital offerings and its cost structure is not commensurate with its earnings generation capacity, as reflected by a very high cost-income ratio (86% in 2017).
Wema Bank operates with just a national banking license, meaning that it must comply with a minimum total regulatory capital requirement of just 10% and its total capital ratio was 13.3% at end-1H18, providing a moderate buffer against this requirement. The bank’s funding profile is structurally weaker than peers’, given a greater reliance on more expensive and less stable term deposits and the lender is almost entirely funded in local currency, meaning that it is less exposed to foreign currency liquidity risks that have prevailed in Nigeria in recent years, which is viewed positively. Single-depositor concentration is in line with peers’, with the 20-largest customer deposits accounting for 18% of the total at end-1H18.
Banking
Proxy Share Acquisition: Nothing to Worry About—LivingTrust Mortgage Bank Assures Shareholders
By Aduragbemi Omiyale
The board of LivingTrust Mortgage Bank Plc has assured the investing public, particularly its shareholders, that its operations are not being affected by reports of an alleged proxy share acquisition surrounding the organisation.
It was claimed that an investor attempted to take over the control of the real estate lender with funds alleged to have been from questionable sources.
In a clarification to the investing public through the Nigerian Exchange (NGX) Limited on Tuesday, April 7, 2026, the company said it cannot confirm if security operatives investigating the claims have submitted their report to the Central Bank of Nigeria (CBN).
However, it assured that, “Our bank is stable and that in the event of any change in ownership, we will file the necessary formal notifications and publish detailed announcements.”
In the notice today, LivingTrust Mortgage Bank narrated that, “As a company listed on the Growth Board of NGX, there are regular movements on the bank’s shareholder register.
“The bank’s monitoring of material movements showed an acquisition of 2.24 per cent of its shareholding by Apel Asset Ltd-Nominee, as per its register of June 25, 2025, as obtained from our registrar. However, one month later, in July 2025, the register obtained from the bank’s registrar showed the same shares to be listed in favour of Deril Academy Limited. We are further aware that in July 2025, Deril Academy Limited teamed up with some other shareholders in a takeover attempt via a matter filed in the Federal High Court, Lagos. The attempt failed, and the matter has now been withdrawn.
“Please note that we do not reveal the veil of corporations of juridical entities investing in the shares of the bank, below the level considered statutorily significant.
“While the CBN assesses the source of funds invested in financial institutions, persons purchasing shares of less than 5 per cent of total shareholdings in the open market are not required to be reported to the CBN.”
Business Post reports that the majority shareholders of LivingTrust Mortgage Bank, formerly Omoluabi Mortgage Bank, are Cititrust Holdings Plc and the Osun State Government.
By Adedapo Adesanya
Nigeria’s Bank Verification Number (BVN) registry surged to 68.6 million in the first three months of 2026 from 67.8 million in the last quarter of 2025, reflecting continued uptake of the unique identity platform for bank customers amid new regulatory directives to strengthen the Nigerian financial landscape further.
Data released by the Nigeria Inter-Bank Settlement System (NIBSS) showed that the database expanded by 754,128 in the first quarter of the year.
Last year, the sector recorded 4.3 million new registrations, largely driven by the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to register remotely, thereby boosting cross-border financial inclusion.
The data for fresh enrolments in 2026 showed a slowing rate of registrations, with fewer than one million recorded in the first three months. The total number of active bank accounts in Nigeria stood at over 320 million as of March 2025, highlighting a gap between BVN coverage and the broader banking population. While a single BVN can be linked to multiple accounts, unlinked accounts remain a challenge for financial oversight.
Last month, the Central Bank of Nigeria (CBN) introduced a revised BVN regulatory framework to strengthen identity verification and fraud prevention. Among the new provisions, only individuals aged 18 and above are eligible for BVN enrolment, and customers are now permitted to update the phone number linked to their BVN only once.
The apex bank also directed financial institutions to maintain a temporary watch list of BVNs associated with suspected fraudulent transactions. Affected BVNs remain on the list for up to 24 hours, during which owners are contacted for clarification before further action is taken.
According to the CBN, the measures are designed to tighten fraud monitoring, protect transaction integrity, and enhance identity management across Nigeria’s banking system.
By Modupe Gbadeyanka
One tune that is on the lips of young and energetic Nigerians is the new ALAT: The Evolution jingle.
The melodious clink was designed to capture the energy of a smarter and more seamless banking experience. It is bright, catchy, and full of life.
The lender said the ALAT: The Evolution jingle is more than just music, as it represents a clear statement of intent. It signals a shift towards banking that feels natural, responsive, and in tune with the user.
As customers update their app and explore ALAT: The Evolution, the jingle serves as a reminder that a better, smoother way to bank is already here. Wema Bank is not just evolving its technology; it is shaping how banking feels.
It was stated that the tune was introduced to mark the next phase of the financial institution’s digital banking journey.
Everyday banking can often feel routine or even stressful, with multiple steps and delays slowing things down. The ALAT: The Evolution jingle reimagines that experience with a lively and confident tone that mirrors the app’s capabilities.
From voice banking with SAW to Tap and Pay and bank uptime prediction, each feature is echoed in the rhythm and flow of the sound. It brings to life the speed, convenience, and reliability that define this new phase of ALAT: The Evolution.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn