Alert Microfinance Bank has received credit rating upgrades from Agusto & Co. and DataPro, following improvements in its capitalisation, liquidity, asset quality and overall financial position.

Agusto & Co. upgraded the bank’s long-term rating to ‘Bbb-’ from ‘Bb+’, assigned an ‘A3’ short-term rating and maintained a Stable Outlook.

The rating agency said the upgrade reflected the bank’s improved capitalisation and liquidity position, supported by an experienced management team and a non-performing loan ratio that remained broadly in line with industry peers.

Similarly, DataPro upgraded Alert MFB’s long-term rating to ‘A-’ from ‘BBB+’, alongside an ‘A1’ short-term rating, with a Stable Outlook and an upward rating trend.

DataPro identified the bank’s liquidity, capitalisation, revenue profile and asset quality as key factors supporting its assessment.

The ratings followed significant growth in the bank’s balance sheet during the 2025 financial year. Total assets rose to about ₦28.8 billion in 2025 from ₦12 billion in 2024, while shareholders’ funds increased to ₦5.57 billion from ₦1.37 billion.

Deposit liabilities also grew to ₦15.55 billion from ₦5.94 billion, while profit before tax increased to ₦384.3 million from ₦199 million during the period.

The strengthening of the bank’s capital position was supported by fresh equity injections from shareholders.

Agusto & Co. reported that Alert MFB’s Basel I capital adequacy ratio stood at 25 per cent at the end of 2025, compared with the 10 per cent regulatory minimum for microfinance banks, describing the bank’s capitalisation as adequate for the business risks undertaken.

Commenting on the development, Group Chief Executive Officer of Alert Group, Dr. Kazeem Olanrewaju, said the upgrades validated the group’s efforts to build stronger financial institutions capable of supporting businesses and the wider economy.

He said: “These upgrades are an important validation of the deliberate work that has gone into strengthening Alert MFB’s financial foundation. Our ambition has always been to build for scale, but scale must be supported by adequate capital, disciplined risk management, strong governance and the capacity to meet our obligations.”

Olanrewaju added that as the bank expands its national footprint, the group would continue to invest in its systems, people and financial capacity to serve more businesses and individuals.

Liquidity also remained a major strength for the bank, with Agusto & Co. reporting a liquidity ratio of 47.9 per cent at year-end 2025, significantly above the 20 per cent regulatory minimum for microfinance banks.

The bank also maintained ₦3.3 billion in undrawn committed credit lines from three commercial banks, providing an additional liquidity buffer.

Alert MFB recorded substantial growth in lending during the period, with gross loans and advances reaching approximately ₦21.4 billion at the end of 2025.

Despite the expansion in its loan portfolio, the bank’s non-performing loan-to-gross 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 origination process, including physical business visits and multiple levels of approval.

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

He said the bank had deliberately strengthened its capital base, improved liquidity and reinforced its credit and risk management processes over the past year.

“Growth must be supported by strong fundamentals. As we expand, our priority remains to build a resilient bank that can provide sustainable access to finance for MSMEs, support businesses with the capital they need to grow and broaden access to financial services across Nigeria,” Raji said.

He added that the ratings would strengthen the bank’s resolve to improve its financial performance, risk management and service delivery while creating long-term value for customers and stakeholders.

The upgrades come as Alert MFB enters a new phase of expansion following its receipt of a national microfinance banking licence in 2026, positioning it to increase its operations and customer reach across Nigeria.

The bank provides savings, lending and working-capital solutions, with a focus on individuals and micro, small and medium-sized enterprises.

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

The Chief Marketing Officer of Alert Group, Kayode Abraham, said the independent ratings would help strengthen confidence among customers, partners and other stakeholders as the bank enters its next phase of growth.

“For our customers, partners and the wider market, these upgrades reinforce the message that as Alert Microfinance Bank grows, the strength of the institution is growing with it,” Abraham said.

He said the group’s responsibility was to ensure that the institutional progress translated into stronger customer experiences and financial solutions that remained relevant to individuals and businesses.

The Stable Outlooks assigned by both rating agencies reflect their respective assessments of Alert MFB’s current financial position as it continues to execute its growth strategy.