Agusto & Co Assigns ‘BBB+’ Rating To Credit Direct

Credit Direct Finance Company (Credit Direct) Limited, the consumer finance arm of FCMB Group Plc, has recently received an upgrade to its credit rating from Agusto & Co. to BBB+.

According to Agusto & Co., the upgrade reflects Credit Direct’s dominant position in the industry and its good and consistent profitability, which compares better than most peers in the consumer lending segment.

Managing director/CEO of Credit Direct, Chukwuma Nwanze said: “Agusto & Co. has upgraded Credit Direct’s rating to BBB+, a remarkable achievement considering the high inflationary and turbulent macroeconomic environment we are navigating.

“This upgrade which puts us among the highest rated FinTech lenders in the country is not only a testament to our robust financial health and strategic agility but also reflects our resilient business model focused on expanding financial inclusion for Nigerians, our sound risk management practices, and the trust we have built with our customers and stakeholders.”

Furthermore, Credit Direct announced the successful payout of its N6.9 billion Series I and II commercial paper issued in November 2023 on the FMDQ Securities Exchange.

Nwanze thanked the investor community for participating in the series I and II commercial papers saying, “the strong investor confidence demonstrated through their participation and support underscores our position as one of Nigeria’s leading digital-first non-bank financial services providers. We remain dedicated to delivering exceptional value and fostering long-term partnerships that are critical in achieving our ambition to expand financial inclusion for all Nigerians.”

Speaking on the financial performance of the business in the first half of 2024, the chief financial officer at Credit Direct, Kolawole Omoniyi explained that the company is continuing its growth trajectory despite a tough business climate.

Omoniyi stated that, “we delivered a strong financial performance in 2023 and have continued the momentum in the first half of 2024. In our H1 2024 unaudited financial performance, we achieved a 105 per cent YoY growth in interest income. This helped to raise our profitability by 154 per cent in the first six months of the year compared with the corresponding period last year.

“We also continued to see significant improvements in our cost efficiency and asset quality ratios as our cost to income ratio declined by 370bps while our NPL ratio had also declined 221bps as at end of H1 2024. Our return on average equity improved to 65.6 per cent while our return on average assets also improved to 10.5 per cent wrapping up a strong H1 2024 financial period.”

Nwanze explained that, “our strong performance in the first half of 2024 is a clear indication of the transformative power of our digital initiatives. Our commitment to digital transformation has significantly enhanced our operational efficiency, improved customer experience, and boosted employee productivity.”