Agusto & Co. hereby assigns a ‘Bbb-’ rating to Jaiz Bank Plc (‘Jaiz Bank’ or ‘the Bank’), reflecting the Bank’s status as Nigeria’s largest non-interest bank with a growing footprint in its niche market. The rating also considers Jaiz Bank’s goodliquidity profile and adequate capitalisation.
However, offsetting these positives are the Bank’s limited credit and marketrisk controls, high impaired financing ratio and high-cost profile. The rating also takes into cognisance the impact ofthe COVID-19 pandemic on individuals and businesses as well as the limited availability of Shari’ah-compliant instruments which impedes effective liquidity management.
We have attached a stable outlook to the rating of Jaiz Plc. The outlook is hinged on our expectations that asset quality will deteriorate but will be slightly moderated by the CBN’s forbearance while capitalisation will improve in theshort-term on the back of the scheduled capital raising exercise. We also expect the Bank to sustain its good liquidityprofile and the growing footprint in its target market.
This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine /agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but withdue credit to Agusto & Co.
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