Rating Release
Agusto & Co. affirms Providus Bank Limited’s ‘Bbb’ (long term) and ‘A2’ (short term) ratings, with a positive outlook
The rating expires on 30 June 2026.
Agusto & Co. affirms the ‘Bbb’ long term rating and ’A2’ short term rating assigned to Providus Bank Limited (“Providus Bank” or “the Bank”). The ratings are upheld by the Bank’s strong affinity with FinTechs that has supported low deposit base mobilisation and the good liquidity profile. The stable shareholders’ support reflected in the ₦9.4 billion additional capital and the good profitability are also considered positive rating factors. Offsetting these positive factors are the obligor concentrations in the loan book and the prevailing macroeconomic vagaries. We have also considered the potential impact of the planned merger with Unity Bank Plc (Unity Bank) in the assigned ratings and outlook. A “3” ESG score has been attached to the ratings, reflecting our view that environmental, social and governance issues have a material impact on the Bank’s credit risk.
