Rating Release
Agusto & Co. hereby maintains the ‘Bbb-’ indicative rating assigned to LAPO Microfinance Bank Limited with a stable outlook
The rating expires on 30 June 2024.
Agusto & Co. hereby maintains the ‘Bbb-’ indicative rating assigned to LAPO Microfinance Bank Limited (“the MFB” or “LAPO MFB”). The rating reflects LAPO MFB’s large market share in the microfinance industry, good liquidity and funding profile upheld by its extensive branch network and retail affinity, adequate capitalisation and experienced management team. However, the rating is constrained by the MFB’s weak asset quality, subpar risk management practice and gaps in regulatory compliance. We have also considered the adverse impact of the volatile economic terrain on businesses and households in arriving at the rating.
LAPO MFB is Nigeria’s largest microfinance bank. As at 31 December 2022, LAPO MFB had total assets of ₦103.6 billion
