The rating expires on 30 June 2022.
Agusto & Co. upgrades the rating assigned to Jaiz Bank Plc (‘Jaiz Bank’ or ‘the Bank’) to ‘Bbb’ reflecting the Bank’s status as the largest non-interest bank in Nigeria with a growing footprint in the ethical banking segment. The rating also recognises the Bank’s strong shareholders’ support as demonstrated by the ₦3 billion raised through a private placement during a pandemic disrupted period.
During the year under review, Jaiz Bank maintained a good liquidity profile, adequate capitalisation levels and improving profitability metrics. However, moderating these positive rating factors are the Bank’s limited credit and market risk control mechanisms, high impaired financing ratio and operating cost profile amidst the prevailing macroeconomic headwinds. The rating also takes into cognisance the dearth of Shari’ah-compliant investment instruments which constrains liquidity management.
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