Mainstreet Bank gets Agusto’s top rating

AGUSTO & Company Limited, Nigeria’s leading and foremost rating agency, has assigned Mainstreet Bank Plc with an investment grade rating of “Bbb-“ in its 2013 Bank Rating Report, which was published recently.
  The rating, according to the rating agency, was attributed to the banks’ improved market position, experienced management, strong liquidity profile, adequate capitalisation and implicit support of the Asset Management Company of Nigeria (AMCON), Mainstreet Bank’s parent company with total assets and contingents of N2.3 trillion ($15 billion) as at December 31 2012.
  The “Triple B-“ rating score, assigned to the bank by Agusto & Company means that Mainstreet Bank is a financial institution of satisfactory financial condition and has adequate capacity to meet its obligations as and when they fall due. The rating agency gives the bank a “stable” outlook.
  The reviewed report of the bank’s December 31st, 2012 year-end accounts by the rating agency noted that Mainstreet Bank’s capital risk weighted assets ratio of 88.75 per cent almost nine times higher than regulatory minimum of 10 per cent. This according to Agusto provides adequate capital buffer for its current and it is expected to remain so in the short term. Given plans for loan growth by the bank, ability to sustain this low level of non-performing loans clearly indicates that Mainstreet’s Asset quality is satisfactory, explained Agusto.
  Commenting on the ratings, Group Managing Director/Chief Executive Officer, Mainstreet Bank Limited, Faith Tuedor-Matthews, expressed confidence that the positive ratings were as a result of solid recovery in earnings, following deliberate management decision to clean up the inherited legacy bank’s balance sheet, as well as the sustained improvement recorded by the bank’s operations across its branches.
  “The investment grade rating score assigned by Nigeria’s foremost rating agency, Agusto and co, to Mainstreet Bank is a strong indication of the positive impact of our business turnaround and growth repositioning. The recent upgrade of our banking software, equally attests to our collective drive and steadfastness in claiming a leadership position in the industry,” she said.
  She noted, “Mainstreet Bank is now more committed to provide innovative banking services, promote trade and investment and agriculture as well as render excellent customer service to customers.”
  Mainstreet Bank was recently adjudged as the bank with the highest intervention funding in the Federal Government Growth Enhancement Support Scheme Agricultural Scheme (GESS). The bank has also earned numerous awards including the Thisday Newspapers Best CEO award conferred on the bank’s group managing director in 2012.