Credit Direct Finance Company Limited (Credit Direct), a premier digital-first non-bank financial services provider and the consumer finance arm of FCMB Group Plc, has achieved a credit rating upgrade to BBB+ by Agusto & Co.
Agusto & Co. highlighted, “The upgrade reflects Credit Direct’s dominant industry position and its consistent profitability, outperforming many peers in the consumer lending segment.”
Chukwuma Nwanze, Managing Director/CEO of Credit Direct, celebrated the upgrade, stating, “We are honored by Agusto & Co.’s BBB+ rating upgrade, especially amidst high inflation and economic turbulence. This milestone underscores our robust financial health, strategic agility, and commitment to expanding financial inclusion in Nigeria, supported by sound risk management and strong stakeholder trust.”
In addition, Credit Direct successfully repaid its N6.9 billion Series I and II commercial paper issued in November 2023 on the FMDQ Securities Exchange. Nwanze expressed gratitude to investors, saying, “The strong investor confidence underscores our leadership in digital-first non-bank financial services. We are dedicated to delivering exceptional value and fostering long-term partnerships crucial for expanding financial inclusion in Nigeria.”
Kolawole Omoniyi, Chief Financial Officer at Credit Direct, reported remarkable financial growth in H1 2024 despite challenging conditions. Omoniyi noted, “We achieved a 105% YoY growth in interest income, boosting our profitability by 154% in the first six months of the year compared to the same period last year. Our cost-to-income ratio declined by 370bps, and our NPL ratio decreased by 221bps as of the end of H1 2024. Return on average equity improved to 65.6%, and return on average assets rose to 10.5%, reflecting a strong financial period.”
Credit Direct also made significant strides in digital transformation. Nwanze stated, “Our H1 2024 performance showcases the transformative power of our digital initiatives. By June 2024, 95% of our loan book originated through digital channels, up from 62% in June 2023. We introduced four new digital channels and upgraded existing ones, ensuring 24/7 service access.”
The company’s digital transformation includes self-service loan origination channels, automated customer profiling, and credit decisioning, contributing to improved asset quality and reduced cost-to-income ratio despite high inflation.
Looking ahead to H2 2024, Credit Direct aims to build on this momentum, delivering greater value to customers and stakeholders while driving financial inclusion and offering innovative financial solutions.
About Credit Direct Finance Company Limited
Credit Direct is a wholly-owned subsidiary of FCMB Group, offering lending and retail investment products. Licensed by the Central Bank of Nigeria, Credit Direct has served millions of customers nationwide since 2007.
For more information, visit Credit Direct or follow us on X (formerly Twitter), Instagram, Facebook (@creditdirectltd), and LinkedIn (Credit Direct Limited).
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