FSDH Merchant Bank Limited has received a stable outlook for the year 2023/2024, accompanied by a long-term issuer rating of ‘A’ from DataPro, a credit rating agency in Nigeria.
This was disclosed in a statement from the credit rating firm on Sunday, which was signed by Kehinde Rasheed, the company’s client services manager.
“The rating assigned reflects DataPro’s opinion of FSDH Merchant banks’ good earning profile, experienced management team, good liquidity as well as strong risk management framework. The rating assigned indicates low risk,” the statement said.
It added the rating shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro.
“This bank, in our opinion, has a strong ability to meet its ongoing obligations. Its short-term rating of “A2” indicates fair credit quality and adequate capacity for timely payment of financial commitments.”
According to DataPro, some of the factors considered before the rating was assigned included the merchant bank’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance and risk management.
In 2022, FSDH MB leveraged funding obtained from commercial institutions, debt issuances and depositors.
The commercial paper issued during the year amounted to a face value of N20.5 billion, which was complemented by borrowings from various financial institutions to the tune of N50.8 billion. Customer deposit liabilities also grew by 37 percent in 2022.
Its gross earnings and pre-tax profit also grew by 77 percent and 302 percent, respectively, during the year under review.
Last year, the bank raked in N24.4 billion in revenue from its operations, compared to the N13.7 billion it generated in the previous year.