Infinity Microfinance Bank shows strength with DataPro’s A- long-term rating

Infinity Microfinance Bank Nigeria Limited has achieved a long-term rating of A- from DataPro, a leading compliance, corporate governance, and fraud risk management consulting firm in Nigeria. The rating represents an upgrade from the previous BBB+ rating and comes with a stable outlook.

DataPro’s evaluation considered a comprehensive range of qualitative and quantitative factors to arrive at the risk indicator. The qualitative assessment included industry and market intelligence, while the quantitative analysis was based on the bank’s audited and management accounts.

The rating reflects Infinity Microfinance Bank’s robust performance across several key areas, including capitalisation, earnings profile, liquidity, corporate governance, regulatory compliance, and the sustainability of its healthy profile over the medium to long term.

Operating from 20 branches across Lagos State, Infinity Microfinance Bank serves over 150,000 customers with a workforce of 250 employees as of December 31, 2023. Established in March 2005 as a Community Bank and evolving from Infinity community savings, the Bank has been instrumental in mobilising savings and providing loans to grassroots entrepreneurs through a modernised thrift system.

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In 2023, the Bank disbursed over N25 billion to support Micro, Small, and Medium Enterprises (MSMEs). The Bank experienced significant growth in its key financial indicators, with deposits, loans, and advances all seeing notable increases. Loans and advances grew by 20 percent, while total assets, equity, pre-tax profit, and gross earnings rose by 22 percent, 23 percent, 12 percent, and 25 percent, respectively.

The Bank transitioned to a Microfinance Bank in October 2007, following the introduction of the Microfinance Bank policy by the Federal Government of Nigeria. It received a state license in principle in 2013 from the Central Bank of Nigeria (CBN). Its principal activities include consumer financing, deposit mobilisation, leasing, advisory services, MSME financing, micro and health insurance, and mobile banking.

Currently, the Bank is collaborating with the Development Bank of Nigeria to provide long-term developmental facilities aimed at supporting medium and large-scale businesses.

The strong rating underscores the Bank’s stability and its ongoing commitment to fostering economic growth through strategic financial services and community support.