Abbey Mortgage Bank Receives “A-” Rating
Abbey Mortgage Bank Plc has been assigned “A-” rating with an evolving outlook for the year 2022/2023, by DataPro, a technology-driven Clcredit rating agency (CRA).
In a statement, the agency’s Client Services Manager, Mr. Kehinde Rasheed, explained that the “A-” indicates low risk, adding that the rating also shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro.
He stated that the bank, in the opinion of DataPro has strong ability to meet its ongoing obligations.
According to the statement, the DataPro Rating Committee approved the rating after assessment of the bank’s financial performance, capital adequacy, asset quality, liquidity, profitability, corporate governance, risk management/factors as well as future outlook of its current
healthy profile in the medium to long-term period.
“The bank’s key financial indicators were largely improved during the year under review,” the statement said, adding that
“the bank injected additional capital of N3billion in the year 2021. Additional funding also came through improvements in its institutional and wholesale business segment.,” The statement said.
It disclosed that the bank successfully reversed its loss position to profit during the year 2021.
Accordingly, it’s financial result for the nine months ending September 2022 showed an increase in revenue, total asset and equity to N3.9billion, N44billion, and N7.5billion respectively.
Rasheed pointed out that the rating of Abbey Mortgage Bank Plc is also supported by the bank’s strong revenue
growth and experienced management and good liquidity.
“Abbey Mortgage Bank Plc had a Short-Term Rating of “A1” which indicates good credit quality and capacity for timely payment of financial commitments.
Meanwhile, DataPro noted that the rating carries a maximum shelf life of 12 calendar months, in line with International best practice, explaining that the rating is rnot an offer to trade in securities nor a substitute for the user’s judgement. “It is meant for reference purposes,” the statement warned.