Rating Release
Agusto & Co. hereby affirms “Bbb-” rating assigned to LAPO Microfinance Bank Limited with a stable outlook
The rating expires on 30 June 2026
Agusto & Co. hereby affirms the ‘Bbb-’ rating assigned to LAPO Microfinance Bank Limited (“LAPO MFB” or “the MFB”). The rating reflects LAPO MFB’s large market share in the microfinance industry, good capitalisation, large pool of low-cost deposits and experienced management team. However, the rating is constrained by the MFB’s weak asset quality, suboptimal borrower management, high loan to deposit ratio and weak efficiency ratios. We have also considered LAPO MFB’s ability to improve asset quality in a period of heightened credit risk in Nigeria’s macro environment and implement the planned digital strategy amid the stiff competition from banks and fintechs.
LAPO MFB is the largest microfinance bank in Nigeria by total assets. The MFB’s strategic focus is to remain a leading promoter of financial inclusion by providing deposit products and loans to low-income households, small-scale traders and micro enterprises in key industries in Nigeria.
