Agusto & Co. affirms the ‘Bbb-’ rating assigned to Providus Bank Limited, with a stable outlook
The rating expires on 30 June 2023.
Agusto & Co. hereby affirms the ‘Bbb-’ rating assigned to Providus Bank Limited (“Providus Bank” or “the Bank”). The rating reflects the Bank’s satisfactory profitability and good liquidity profile bolstered by its affinity with financial technology operators (FinTechs). The rating also reflects Providus Bank’s experienced and stable management team, in addition to good shareholder support evidenced by the ₦6.5 billion additional capital raised during the review period. However, constraining the rating is the obligor concentration in the loan book, the fragile macroeconomy and the arbitrary cash reserve requirement policy which continues to adversely impact profitability.