Agusto & Co. affirms Jaiz Bank Plc.’s ‘Bbb’ rating, assigns an ESG score of ‘2’ and a stable outlook.
The rating expires on 30 June 2023.
Agusto & Co. hereby affirms the ‘Bbb’ rating assigned to Jaiz Bank Plc (‘Jaiz Bank’ or ‘the Bank’), reflecting the Bank’s status as the leading non-interest financial institution with a growing footprint across Nigeria. The rating also considers Jaiz Bank’s good liquidity profile, good profitability and adequate capitalisation. However, offsetting these positives are the Bank’s high impaired financing ratio and high-cost profile. The rating also takes into cognisance the negative impact of the arbitrary cash reserve deductions, Nigeria’s weak macroeconomic fundamentals and the limited availability of Shari’ah-compliant instruments which hinders effective liquidity management. We have also assigned an ESG score of ‘2’ denoting that environmental, social and governance issues have minimal contributions to credit risk.