Data pro, a licensed Credit Rating Agency (CRA) in Nigeria recognized by the Securities and Exchange Commission (SEC), has in its latest report assigned Mutual Trust MFBank Limited a Short-Term Rating of A2 and a long-term rating of “A-” with a Stable Outlook for the year 2022/2023.
Mutual Trust MFBank Limited is a prominent bank that operates from its Head Office in Abuja, Nigeria. The Bank is in the business of Consumer Financing, Micro, Small, and Medium Enterprise (MSME) Financing, Fund Management, and Acceptance of Deposits.
The Short-Term Rating of A2 assigned by Data Pro indicates the adequate capacity for timely fulfillment of financial commitments, while the Long-Term Rating of A- indicates Low Risk. It shows Very Good liquidity, Good Asset Quality and Profitability, Operating Performance, and Business Profile when compared to the standards established by Data Pro. Mutual Trust MFBank Limited has a solid ability to meet its ongoing obligations.
The Key Financial Indicators of the Bank recorded significant growth in the year 2021. A result of consistent deposit mobilizations and the ability to drive up Loans and Advances considerably.
The Bank recorded significant growth in the year under review and outperformed essential requirements directed by the Central Bank of Nigeria. In line with the CBN requirement to maintain a Liquidity ratio of 30% and Capital Adequacy Ratio of 10%, the Bank has achieved a Statutory Liquidity ratio of 66% and a Capital Adequacy Ratio of 15 %. This is way above the minimum mark.
The Bank grew its Deposits and Equity significantly during the year under review. All components of Equity contributed to the growth. The rise in Total Assets was due to the Loans and Advances increment.
The Bank extended most of its Loans to the Public and Private Sector, Consumer, and SME Lending during the year under review.
The Data Pro Rating Committee approved the Rating after assessing the Company’s Financial Performance, Capital Adequacy, Asset Quality, Profitability, Risk Factors, and Future Outlook of its current healthy profile in the medium to long-term duration.
This Rating carries a maximum shelf life of 12 calendar months, in line with International Best Practices. And therefore, not an offer to trade in securities nor a substitute for the user’s judgment. It is meant for reference purposes only.
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