Providus Bank Retains “A-” Rating with Outlook Stable

Providus Bank Plc has been assigned a long-term rating of “A-“ with a stable outlook for the year 2021/2022 by DataPro, a technology-driven credit agency in its latest report.

According to a statement signed by the Client Services Manager of the rating agency, Mr. Kehinde Rasheed, the “A-” indicates low risk and it shows a 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,” the statement explained.
It stated further that DataPro Rating Committee approved the rating after an assessment of the bank’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance, and risk management as well as risk factors of its current healthy profile in the medium to long-term period.
“The bank’s gross earnings grew by 70 per cent from N23.3b (Yr. 20) to N39.7b (Yr. 21).

The growth was supported by the increase recorded in both interest and non-interest earnings. The interest-based income represented 74 per cent of the bank’s total earnings during the year. This grew by 63 per cent from N18.02b (Yr. 20) to N29.39b (Yr. 21),” the statement clarified. It added that 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.
According to the rating agency, Providus Bank Plc had a Short-Term Rating of “A1” which indicates Good Credit Quality and satisfactory capacity for timely payment of financial commitments.

DataPro, which explained that the rating is meant for reference purposes only, however, noted that the rating carries a maximum shelf life of 12 calendar months, in line with international best practice and that the exercise is not an offer to trade in securities nor a substitute for the user’s judgment.