Alert MFB wins double credit rating upgrade

Alert Microfinance Bank (Alert MFB), a member of Alert Group, has secured improved credit ratings from Agusto & Co. and DataPro, reflecting stronger capital, liquidity, asset quality and overall financial performance.

Agusto & Co. upgraded the bank’s long-term rating to “BBB-” from “BB+”, assigned an “A3” short-term rating and maintained a stable outlook.

DataPro, in a separate assessment, upgraded Alert MFB’s long-term rating to “A-” from “BBB+”, with an “A1” short-term rating, a stable outlook and an upward rating trend.

Agusto & Co. said the upgrade was supported by the bank’s improved capital and liquidity positions, experienced management and a non-performing loan ratio that remained in line with industry peers.

DataPro also cited the bank’s good liquidity, capitalisation, revenue profile and asset quality as key factors behind its improved rating.

The upgrades came after significant growth in the bank’s balance sheet in 2025. Total assets rose to about N28.8 billion, from N12 billion in 2024, while shareholders’ funds increased to N5.57 billion, from N1.37 billion. Deposits also climbed to N15.55 billion, from N5.94 billion, while profit before tax rose from N199 million to N384.3 million during the period.

The bank’s stronger capital position was partly driven by fresh equity contributions from shareholders. Agusto & Co. said Alert MFB’s Basel I capital adequacy ratio stood at 25 per cent at the end of 2025, well above the 10 per cent regulatory minimum for microfinance banks.

Liquidity also remained strong, with the bank’s liquidity ratio standing at 47.9 per cent, compared with the 20 per cent regulatory minimum. The bank also had N3.3 billion in undrawn committed credit lines from three commercial banks, providing an additional buffer.

Alert MFB’s gross loans and advances rose to about N21.4 billion at the end of 2025. Despite the growth in lending, its non-performing loan ratio stood at 4.8 per cent, which Agusto & Co. said remained within the regulatory benchmark.

The rating agency attributed the bank’s asset quality partly to its credit approval process, which includes physical visits to customers’ businesses and multiple levels of approval.

Group Chief Executive Officer of Alert Group, Dr. Kareem Olanrewaju, said the ratings validated the group’s efforts to build a stronger financial institution capable of supporting businesses and the wider economy.

He said the bank would continue to invest in its systems, workforce and financial capacity as it expands its national presence.

Managing Director/Chief Executive Officer of Alert MFB, Saheed Raji, said the ratings reflected the progress made in strengthening the bank’s fundamentals while expanding its capacity to serve customers.

He said the bank’s priority remained building a resilient institution capable of providing sustainable financing to micro, small and medium-sized enterprises (MSMEs) and expanding access to financial services.

The ratings come as Alert MFB enters a new phase of expansion following its receipt of a national microfinance banking licence in 2026.

The bank offers savings, loans and working-capital financing to individuals and businesses, with a particular focus on MSMEs.

Alert Group currently operates in more than 20 states, with over 40 branches across Nigeria, alongside digital channels including the Alert Mobile app, Goldbucks savings app, Alert Business Banking, POS and Alert Debit Card.

The stable outlooks from both rating agencies indicate that they expect the bank’s current financial position to remain broadly stable as it implements its growth strategy.

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