Wema Bank Plc shed more than ₦54 billion in market value last week after heavy sell-offs triggered a steep 12.4% decline in its share price on the Nigerian Exchange (NGX).
The tier-2 lender’s stock closed at ₦18.00 on Friday, down from ₦20.55 the previous week, as 12.41 million units worth ₦242.99 million exchanged hands in bearish trades. The sell pressure dragged its market capitalization down to ₦385.74 billion, shaving off about ₦54.8 billion in value.
Analysts link the slump to pre-Q3 earnings repositioning as investors brace for weaker margins across the banking sector. The Central Bank of Nigeria’s recent rate cut has heightened concerns over downward loan repricing, which is expected to weigh on industry earnings.
“Net interest margins are projected to shrink, while banks with net FX gains could face pressure from the naira’s sustained appreciation,” PAC Research noted in a sector update.
Wema Bank, which has been one of the fastest-rising lenders on the NGX—up 2,643% since 2020—still holds a year-to-date return of nearly 140% despite the correction. The bank had earlier strengthened its capital base with a ₦150 billion rights issue in 2024, bringing total fresh capital raised to over ₦200 billion under CBN’s recapitalisation push.
Market watchers warn that post-recapitalisation rivalry and tighter regulations could intensify pressure on tier-2 players like Wema, especially as tier-1 banks consolidate dominance ahead of Q3 earnings season.
