The rating expires on 30 June 2021.

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 good liquidity profile and adequate capitalisation.

However, offsetting  these positives are the Bank’s limited credit and market risk controls, high impaired  financing  ratio  and  high-cost  profile.  The rating  also  takes  into  cognisance the impact  of the  COVID-19 pandemic  on  individuals  and  businesses as  well  as  the  limited availability of Shari’ah-compliant  instruments which impedes effective liquidity management.

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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 the short-term on the back of the scheduled capital  raising exercise.  We also expect  the Bank to sustain  its good liquidity profile and the growing footprint  in its target  market.

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