| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 4/6 |
| Dividends | 2/6 |
WEMABANK Overview
Wema Bank PLC provides banking and other financial services to corporate and individual customers in Nigeria.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | ₦0.75 |
| 52 Week High | ₦0.54 |
| 52 Week Low | ₦0.92 |
| Beta | 1.43 |
| 1 Month Change | -1.32% |
| 3 Month Change | -15.73% |
| 1 Year Change | 33.93% |
| 3 Year Change | 25.00% |
| 5 Year Change | 27.12% |
| Change since IPO | -59.68% |
Recent News & Updates
Shareholder Returns
| WEMABANK | NG Banks | NG Market | |
|---|---|---|---|
| 7D | -1.3% | 2.1% | 0.4% |
| 1Y | 33.9% | 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
| WEMABANK volatility | |
|---|---|
| WEMABANK Beta | 1.43 |
| Industry Beta | 0.87 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1945 | 1,232 | R. Ademola Adebise | https://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
| WEMABANK fundamental statistics | |
|---|---|
| Market Cap | ₦28.93b |
| Earnings (TTM) | ₦6.80b |
| Revenue (TTM) | ₦47.75b |
4.3x
P/E Ratio0.5x
P/B RatioIs WEMABANK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 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 Margin | 93.76% |
| Net Profit Margin | 14.24% |
| Debt/Equity Ratio | 117.9% |
How did WEMABANK perform over the long term?
See historical performance and comparisonDividends
5.3%
Current Dividend Yield23%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/21 20:59 |
| End of Day Share Price | 2021/10/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.