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WEMA

Wema BankNGSE:WEMABANK Stock Report

Market Cap

₦28.9b

7D

-1.3%

1Y

33.9%

Updated

21 Oct, 2021

Data

Company Financials
WEMABANK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends2/6

WEMABANK Overview

Wema Bank PLC provides banking and other financial services to corporate and individual customers in Nigeria.

Price History & Performance

Summary of all time highs, changes and price drops for Wema Bank
Historical stock prices
Current Share Price₦0.75
52 Week High₦0.54
52 Week Low₦0.92
Beta1.43
1 Month Change-1.32%
3 Month Change-15.73%
1 Year Change33.93%
3 Year Change25.00%
5 Year Change27.12%
Change since IPO-59.68%

Recent News & Updates

Shareholder Returns

WEMABANKNG BanksNG Market
7D-1.3%2.1%0.4%
1Y33.9%23.6%40.4%

Return vs Industry: WEMABANK exceeded the NG Banks industry which returned 23.6% over the past year.

Return vs Market: WEMABANK underperformed the NG Market which returned 40.4% over the past year.

Price Volatility

Is WEMABANK's price volatile compared to industry and market?
WEMABANK volatility
WEMABANK Beta1.43
Industry Beta0.87
Market Beta1

Stable Share Price: WEMABANK is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WEMABANK's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19451,232R. Ademola Adebisehttps://www.wemabank.com

Wema Bank PLC provides banking and other financial services to corporate and individual customers in Nigeria. The company offers current and saving accounts, HNIs, and term deposits; card services, such as debit, credit, secure, and prepaid cards; consumer and personal loans, and revolving overdrafts; and collection services. It also provides corporate banking services, including overdraft, term loan, import and trade finance, and financial lease facilities; and agricultural finance, as well as export, power, oil and gas, maritime, and concessionary finance services.

Wema Bank Fundamentals Summary

How do Wema Bank's earnings and revenue compare to its market cap?
WEMABANK fundamental statistics
Market Cap₦28.93b
Earnings (TTM)₦6.80b
Revenue (TTM)₦47.75b

4.3x

P/E Ratio

0.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WEMABANK income statement (TTM)
Revenue₦47.75b
Cost of Revenue₦2.98b
Gross Profit₦44.77b
Expenses₦37.97b
Earnings₦6.80b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin93.76%
Net Profit Margin14.24%
Debt/Equity Ratio117.9%

How did WEMABANK perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is Wema Bank undervalued compared to its fair value and its price relative to the market?

4.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WEMABANK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WEMABANK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: WEMABANK is poor value based on its PE Ratio (4.3x) compared to the NG Banks industry average (3.8x).

PE vs Market: WEMABANK is good value based on its PE Ratio (4.3x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WEMABANK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WEMABANK's PB Ratio (0.5x) is in line with the NG Banks industry average.


Future Growth

How is Wema Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wema Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Wema Bank performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEMABANK has high quality earnings.

Growing Profit Margin: WEMABANK's current net profit margins (14.2%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: WEMABANK's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: WEMABANK's earnings growth over the past year (52.9%) exceeds its 5-year average (19.2% per year).

Earnings vs Industry: WEMABANK earnings growth over the past year (52.9%) exceeded the Banks industry 10.5%.


Return on Equity

High ROE: WEMABANK's Return on Equity (11.1%) is considered low.


Financial Health

How is Wema Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: WEMABANK's Assets to Equity ratio (16.8x) is moderate.

Allowance for Bad Loans: WEMABANK has a low allowance for bad loans (85%).

Low Risk Liabilities: 87% of WEMABANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: WEMABANK has an appropriate level of Loans to Assets ratio (36%).

Low Risk Deposits: WEMABANK's Loans to Deposits ratio (44%) is appropriate.

Level of Bad Loans: WEMABANK has a high level of bad loans (4.7%).


Dividend

What is Wema Bank current dividend yield, its reliability and sustainability?

5.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEMABANK's dividend (5.33%) is higher than the bottom 25% of dividend payers in the NG market (3.28%).

High Dividend: WEMABANK's dividend (5.33%) is low compared to the top 25% of dividend payers in the NG market (7.27%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WEMABANK has been paying a dividend for less than 10 years.

Growing Dividend: WEMABANK's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.7%), WEMABANK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

R. Ademola Adebise (55 yo)

3.25yrs

Tenure

Mr. R. Ademola Abimbola Adebise, BSc, MBA, FCA, has been Managing Director and Chief Executive Officer at Wema Bank Plc since October 1, 2018 and has been its Executive Director since July 1, 2018. He was...


Leadership Team

Experienced Management: WEMABANK's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: WEMABANK's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wema Bank PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Wema Bank PLC
  • Ticker: WEMABANK
  • Exchange: NGSE
  • Founded: 1945
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦28.931b
  • Shares outstanding: 38.57b
  • Website: https://www.wemabank.com

Number of Employees


Location

  • Wema Bank PLC
  • Wema Towers
  • 54, Marina
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:59
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.