Ecobank Nigeria has been upgraded to has upgraded to a stable outlook, with a B+/B ratings by Standard &Poor’s (S&P)
According to the rating agency, the rating given to Ecobank Nigeria replicated the profitability and asset quality of its parent, Ecobank Group, adding that the Nigerian unit would likely remain core to the wider group’s performance.
Ecobank Nigeria had reduced its non-performing loans (NPLs) from six per cent in 2013 to 4.7 per cent in 2014 (the Group went from 6.2 per cent to 4.4 per cent in the same period).
S&P said: “We anticipate that the group’s asset quality should remain broadly stable in 2015, reflecting its diversification across countries and better risk-management practices at the group and affiliate levels,” adding that it expects NPLs to average around five per cent through to 2018.
“In our view, Ecobank Nigeria benefits from the wider group’s scale and franchise in corporate and retail segments across Africa, which should help ensure business growth and revenue stability, despite the difficult Nigerian economy. We consider the group’s business stability to be strong, owing to geographic diversification that supports growth in key markets where it operates among the top-tier banks,” S&P added.