Providus Bank Plc has retained its long-term rating of ‘A-‘ with a stable outlook for the year 2021/2022 assigned by DataPro, a technology-driven Credit Rating Agency (CRA) in its latest report.
In a press release signed by Kehinde Rasheed, Client Services Manager, the credit rating agency declared that the bank has a strong ability to meet its ongoing obligations.
According to DataPro, the rating was assigned after an assessment of the company’s financial performance and other key indexes.
What Data Pro is saying
DataPro stated, “The Technology-Driven Credit Rating Agency (CRA) has in its latest report, affirmed Providus bank Plc a long-term rating of “A-” with a stable outlook for the year 2021/2022.
“The ‘A-‘ indicates low risk. It shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro. Providus bank Plc, in our opinion, has a strong ability to meet its ongoing obligations”.
DataPro also noted that its Rating Committee approved the Rating after an assessment of the Company’s Financial Performance, Capital Adequacy, Asset Quality, Liquidity, Profitability, Corporate Governance & Risk Management as well as Risk Factors of its current healthy profile was done in the medium to long-term period.
Referencing the performance of the bank, in 2021, it stated that the banks’ gross earnings grew by 70% from N23.3 billion in 2020, to N39.7 billion in 2021. “The growth was supported by the increase recorded in both Interest and Non-Interest Earnings. Interest-based income represented 74% of the bank’s total earnings during the year.
“This grew by 63% from N18.02b (Yr. 20) to N29.39b (Yr. 21) The rating of Providus Bank Plc is also supported by its strong brand presence and market share of its subsidiaries, experienced management team and, good liquidity position”.
Notably, Providus Bank Plc had a short-term rating of ‘A1’ which indicates Good Credit Quality and satisfactory capacity for timely payment of financial commitments.
What you should know
- In line with International best practice, DataPro notes that the Rating carries a maximum shelf life of 12 calendar months.
- DataPro therefore, stressed that the Rating is not an offer to trade in securities, nor a substitute for the users’ judgment, as it is meant for reference purposes.
