Providus Bank retains “A-” rating with stable outlook

DataPro, a technology-driven credit rating agency has affirmed Providus Bank Plc long-term rating of “A-” with a stable outlook for the year 2021/2022.

A statement by the firm explained that the “A-” indicates low risk, which shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro.

It stated that Providus Bank Plc, in its opinion, has a strong ability to meet its ongoing obligations.

DataPro 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 in the medium to long-term period.

According to DataPro, “Providus Bank Plc, in our opinion, has a strong ability to meet its ongoing obligations”.

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The bank’s gross earnings grew by 70 percent 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.

The interest-based income represented 74 percent of the bank’s total earnings during the year. This grew by 63 percent from N18.02 billion in 2020 to N29.39 billion in 2021.

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.

DataPro notes that the rating carries a maximum shelf life of 12 calendar months, in line with international best practices.

“The rating is therefore not an offer to trade in securities nor a substitute for the user’s judgment. It is meant for reference purposes,” DataPro Concluded.

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