The Development Bank of Nigeria (DBN) has increased its loan portfolio to N215.1 billion, according to Agusto & Co., which has given the bank a triple “A” rating and a stable outlook.
Mr. Tony Opkanachi, DBN’s Managing Director, who supplied the loan portfolio data in a statement yesterday, expressed his team’s delight at the AAA rating.
“We are excited by this independent review of our operations,” he says, “since it provides an objective perspective on the bank’s credibility and capacity to pay immediate and long-term obligations.”
The highest attainable credit rating for an organization is AAA, according to Nigeria’s leading credit rating agency.
He claimed that the bank has maintained an extraordinary asset quality record with zero delinquency, which he described as “unique fundamentals” that demonstrate the effectiveness of its credit generation process and overall risk management culture.
“Notably, the Bank has a BASEL II capital ratio of 75.2 percent, which is several times higher than the required minimum of 10%.
“During the review period, DBN’s liquidity ratio hovered around 84 percent, compared to the 10 percent regulatory requirement, implying that DBN’s capacity to deepen credit penetration among MSMEs will be sustained.
“Agusto’s decision to give “AAA” to DBN, with a stable outlook, is bolstered by excellent financial indicators and impeccable governance standards.”
DBN continued to expand its scope of operations, onboarding more Participating Financial Institutions (PFIs) and deepening credit penetration in the low end of the market, particularly among women entrepreneurs, who account for over 50% of the bank’s ultimate borrowers, according to the MD.
Mr. Okpanachi promised to keep gold-standard risk management and governance methods in order to maintain the ratings, which are important to DBN’s medium- to long-term goals as it implements its innovative strategies for unlocking financing for MSMEs.
Despite the epidemic, DBN increased its loan portfolio to N215.1 billion, leveraging its strong risk management practices to reach over 136,000 MSMEs with loans.
DBN was described by Agusto & Co as “a development financing institution of excellent financial condition and overwhelming capacity to meet commitments as and when they fall due” in a summary of the rating.
“Despite the COVID-19 pandemic, DBN boosted its financial support to Micro, Small, and Medium Scale Enterprises (MSMEs) and small businesses through participating banking institutions,” the statement continued.
“The strong asset quality, capitalization, liquidity, and competent management team of DBN are additional positive rating factors.”
“The thorough and exhaustive process that underpins Agusto’s rating is admirable, and I am glad that the bank was given the highest possible rating, ‘AAA.’”
Agusto’s rating matches that of Global Credit Ratings (GCR), which recently gave DBN a “AAA” national scale rating.
For more info about operating banks in Nigeria, visit editorialtimes.com