WEMA BANK: STOCK ANALYSIS
Wema is traded on the NGX under the ticker symbol “WEMABANK”. Founded in 1945, it operates over 150 branches across Nigeria. The bank offers services such as transactional accounts, savings accounts, loans, overdrafts, trade finance, and advisory services. Wema Bank is also known for its innovative digital banking platform, ALAT. Wema began the year with a share price of 5.60 NGN and has since gained 19.6% on that price valuation, ranking it 37th on the NGX in terms of year-to-date performance. Investors should, however, take caution of WEMABANK’s recent bad performance, having lost 6% of its value in the past four weeks.
Wema Bank is the 24th most traded stock on the Nigerian Stock Exchange over the past three months (Apr 12 - Jul 15, 2024).
FINANCIAL SUMMARY FOR Q1 24:
Wema Bank Plc announced 104.9% Interest Income Growth in Q1 2024 . It outperformed its peers on the Nigerian Exchange (NGX) with a 51.79% share price appreciation, closing the quarter at NGN 8.50 with a market cap of NGN 109.294 billion.
Key Highlights
Interest Income grew by 104.9% from N33.88bn to N69.42bn.
Profit before tax stood at N11.15bn
Profit after tax stood at N9.67bn
CURRENT STOCK PRICE: NGN 6.5
EPS: 0.04
MARKET CAP: 86.15 BILLION
PROFIT MARGIN:
Wema Bank's net profit margin for the trailing twelve months (TTM) is approximately 28.93%.
MARKET POSITION:
Wema Bank is considered a mid-sized commercial bank in Nigeria. It holds a market share of about 1.0% in terms of total assets. The technical indicators suggest a neutral stance, meaning there isn't a strong buy or sell signal at the moment.
ANALYST FORECAST:
Analysts have provided the following forecasts for Wema Bank:
- 12-Month Price Target: The average price target is NGN 6.38, which represents a potential downside of about 10.14% from the current price.
- Consensus: The overall consensus among analysts is to hold the stock.
RECENT DIVIDEND:
Wema Bank has been consistent with its dividend payments. Here is the recent details:
- 2024: NGN 0.50 per share, with a yield of 6.41%, paid on May 28, 2024.
SWOT ANALYSIS OF WEMA BANK
Strengths:
- Innovative Digital Banking: Wema Bank's ALAT platform is a pioneer in digital banking in Nigeria, enhancing customer experience and operational efficiency.
- Strong Asset Base: The bank has a solid asset base, which supports its lending and investment activities.
- Customer Loyalty: Long-standing relationships with customers and a strong brand presence in Nigeria.
Weaknesses:
- Market Share: As a mid-sized bank, Wema Bank has a smaller market share compared to larger competitors.
- Geographical Concentration: The bank's operations are primarily concentrated in Nigeria, limiting its exposure to international markets.
Opportunities:
- Digital Expansion: Continued investment in digital banking can attract more tech-savvy customers and reduce operational costs.
- Economic Growth: Nigeria's growing economy presents opportunities for increased lending and financial services.
- Regulatory Support: Favorable regulatory changes can provide growth opportunities.
Threats:
- Economic Volatility: Economic instability in Nigeria can impact the bank's performance.
- Competition: Intense competition from both traditional banks and fintech companies.
- Regulatory Risks: Changes in banking regulations can pose challenges.
RECENT NEWS:
1. Empowering Entrepreneurs: Wema Bank is playing an important role in empowering entrepreneurs by bridging the gap between financial constraints and business ambitions.
2. Recapitalisation Programme: The CEO of Wema Bank, Moruf Oseni, highlighted the bank's journey and the impact of the Central Bank of Nigeria's recapitalisation programme on strengthening the banking industry.
3. Rights Issue: Wema Bank recently completed a rights issue of 8.572 billion shares, which was 99.9% subscribed. This move is part of the bank's recapitalisation exercise to meet regulatory requirements.
Wema is traded on the NGX under the ticker symbol “WEMABANK”. Founded in 1945, it operates over 150 branches across Nigeria. The bank offers services such as transactional accounts, savings accounts, loans, overdrafts, trade finance, and advisory services. Wema Bank is also known for its innovative digital banking platform, ALAT. Wema began the year with a share price of 5.60 NGN and has since gained 19.6% on that price valuation, ranking it 37th on the NGX in terms of year-to-date performance. Investors should, however, take caution of WEMABANK’s recent bad performance, having lost 6% of its value in the past four weeks.
Wema Bank is the 24th most traded stock on the Nigerian Stock Exchange over the past three months (Apr 12 - Jul 15, 2024).
FINANCIAL SUMMARY FOR Q1 24:
Wema Bank Plc announced 104.9% Interest Income Growth in Q1 2024 . It outperformed its peers on the Nigerian Exchange (NGX) with a 51.79% share price appreciation, closing the quarter at NGN 8.50 with a market cap of NGN 109.294 billion.
Key Highlights
Interest Income grew by 104.9% from N33.88bn to N69.42bn.
Profit before tax stood at N11.15bn
Profit after tax stood at N9.67bn
CURRENT STOCK PRICE: NGN 6.5
EPS: 0.04
MARKET CAP: 86.15 BILLION
PROFIT MARGIN:
Wema Bank's net profit margin for the trailing twelve months (TTM) is approximately 28.93%.
MARKET POSITION:
Wema Bank is considered a mid-sized commercial bank in Nigeria. It holds a market share of about 1.0% in terms of total assets. The technical indicators suggest a neutral stance, meaning there isn't a strong buy or sell signal at the moment.
ANALYST FORECAST:
Analysts have provided the following forecasts for Wema Bank:
- 12-Month Price Target: The average price target is NGN 6.38, which represents a potential downside of about 10.14% from the current price.
- Consensus: The overall consensus among analysts is to hold the stock.
RECENT DIVIDEND:
Wema Bank has been consistent with its dividend payments. Here is the recent details:
- 2024: NGN 0.50 per share, with a yield of 6.41%, paid on May 28, 2024.
SWOT ANALYSIS OF WEMA BANK
Strengths:
- Innovative Digital Banking: Wema Bank's ALAT platform is a pioneer in digital banking in Nigeria, enhancing customer experience and operational efficiency.
- Strong Asset Base: The bank has a solid asset base, which supports its lending and investment activities.
- Customer Loyalty: Long-standing relationships with customers and a strong brand presence in Nigeria.
Weaknesses:
- Market Share: As a mid-sized bank, Wema Bank has a smaller market share compared to larger competitors.
- Geographical Concentration: The bank's operations are primarily concentrated in Nigeria, limiting its exposure to international markets.
Opportunities:
- Digital Expansion: Continued investment in digital banking can attract more tech-savvy customers and reduce operational costs.
- Economic Growth: Nigeria's growing economy presents opportunities for increased lending and financial services.
- Regulatory Support: Favorable regulatory changes can provide growth opportunities.
Threats:
- Economic Volatility: Economic instability in Nigeria can impact the bank's performance.
- Competition: Intense competition from both traditional banks and fintech companies.
- Regulatory Risks: Changes in banking regulations can pose challenges.
RECENT NEWS:
1. Empowering Entrepreneurs: Wema Bank is playing an important role in empowering entrepreneurs by bridging the gap between financial constraints and business ambitions.
2. Recapitalisation Programme: The CEO of Wema Bank, Moruf Oseni, highlighted the bank's journey and the impact of the Central Bank of Nigeria's recapitalisation programme on strengthening the banking industry.
3. Rights Issue: Wema Bank recently completed a rights issue of 8.572 billion shares, which was 99.9% subscribed. This move is part of the bank's recapitalisation exercise to meet regulatory requirements.