Credit Direct Finance Company (Credit Direct), consumer finance arm of FCMB Group, has got an upgrade rating from Agusto & Co. to BBB+.
Agusto & Co. said the upgrade reflects Credit Direct’s good and consistent profitability.
Managing Director/Chief Executive Officer of Credit Direct, Chukwuma Nwanze, described the upgrade as remarkable, saying it is a testament to the firm’s financial health and strategic agility.
Credit Direct also announced payout of its N6.9 billion Series I and II commercial paper issued in November 2023 on FMDQ Securities Exchange.
Nwanze thanked investors for participating in the Series I and II commercial papers.
“Their confidence and support underscore our position as one of Nigeria’s digital first non-bank financial services providers. We laud their trust, and remain dedicated to delivering value and fostering partnerships critical in achieving our ambition to expand financial inclusion in Nigeria,” he said.
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Chief Financial Officer, Kolawole Omoniyi, said the company is continuing its growth despite a tough business clime.
“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 compared with last year.
We also saw improvements in cost efficiency and asset quality ratios as our cost to income ratio declined by 370bps while NPL ratio declined 221bps as at end of H1 2024,” he said.
Nwanze explained its performance in the first half of 2024 is indication of the power of its digital initiatives.