Providus Bank Plc retains ‘A-’ rating with stable outlook

DataPro, the Technology Driven Credit Rating Agency (CRA) has in its latest report affirms Providus Bank Plc long-term rating of ‘A-’ with a stable outlook for the year 2021/2022.

The ‘A-’ indicates Low Risk. It shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro. Providus Bank Plc, in our opinion, has a strong ability to meet its ongoing obligations.

DataPro Rating Committee approved the rating after assessment of the company’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance & risk management as well as risk factors of its current healthy profile in the medium to long-term period.

The Bank’s gross earnings grew by 70 per cent from N23.3b (Yr. 20) to N39.7b (Yr. 21). The growth was supported by the increase recorded in both interest and non-Interest earnings. The Interest based income represented 74 per cent of the Bank’s total earnings during the year. This grew by 63 per cent from N18.02b (Yr. 20) to N29.39b (Yr. 21).

The rating of Providus Bank Plc is also supported by its strong brand presence and market share of its subsidiaries, experienced management team and good liquidity position.

Providus Bank Plc had a short-term rating of ‘A1’ which indicates good credit quality and satisfactory capacity for timely payment of financial commitments.