Data Pro assigns stable outlook to Mutual Trust MFBank

Data pro, a licensed Credit Rating Agency (CRA) in Nigeria recognized by the Securities and Exchange Commission (SEC), has in its latest report assigned Mutual Trust MFBank Limited a Short-Term Rating of A2 and a long-term rating of “A-” with a Stable Outlook for the year 2022/2023.

A statement from the bank said Mutual Trust MFBank Limited is a prominent bank that operates from its head office in Abuja, Nigeria. The bank is in the business of consumer financing, Micro, Small, and Medium Enterprise (MSME) financing, fund management, and acceptance of deposits.

The short-term rating of A2 assigned by Data Pro indicates the adequate capacity for timely fulfilment of financial commitments, while the long-term rating of A- indicates low risk. It shows very good liquidity, good asset quality and profitability, operating performance, and business profile when compared to the standards as established by Data Pro. Mutual Trust MFBank has a strong ability to meet its ongoing obligations.

The key financial indicators of the bank recorded significant growth in the year 2021. A result of consistent deposit mobilizations and the ability to drive up loans and advances considerably.

The bank recorded significant growth in the year under review and outperformed key requirements directed by the Central Bank of Nigeria (CBN).

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In line with the CBN requirement to maintain a Liquidity ratio of 30 percent and Capital Adequacy Ratio (CAR) of 10 percent, the bank has achieved a statutory liquidity ratio of 66 percent and a CAR of 15 percent. This is way above the minimum mark.

The bank grew its deposits and equity significantly during the year under review. All components of equity contributed to the growth. The rise in total assets was due to the loans and advances increment.

The bank extended most of its loans to the public and private sector, consumer, and SME lending during the year under review.