The upgrade was driven by strong operational performance, according to the agency
Campinas, December 18, 2024 – Agibank, a bank that operates a hybrid business model combining digital solutions and smart hubs, received today a rating upgrade from S&P, raising its classification to ‘brA+’, with a stable outlook.
In its report, S&P highlighted that “Banco Agibank S.A. has been successful in its business plan, with increasing market share indicators, in addition to achieving profitability above that of its peers due to its strong net interest margins (NIMs). Furthermore, the bank has demonstrated the ability to expand its portfolio in the collateralized retail segment for low-income INSS beneficiaries without aggressively growing its personal credit portfolio, which we consider riskier. Additionally, the bank maintained strong financial performance, with stable capital metrics despite strong growth.”
In April, Agibank received a two-notch upgrade to A+ from Moody’s, followed by another two-notch upgrade to A+ from Fitch in August. Now, the three leading rating agencies – S&P, Fitch, and Moody’s – assign Agibank an A+ rating, consolidating confidence in the bank’s business model and its sustainable trajectory.
“The two-notch upgrades received this year from Fitch and Moody’s, now combined with S&P’s elevation to ‘brA+’, represent a rare and significant milestone. These achievements strengthen market confidence in our business model, broaden our funding alternatives at more competitive costs, and consolidate the perception of Agibank as a solid and resilient institution. We are firmly positioned on a path of sustainable growth, with robust profitability as a result of a business model that combines the best of digital and in-person solutions, always focusing on principalidade and close relationships with our clients,” commented Marcello Dubeux, Agibank’s Chief Financial and Investor Relations Officer.
Agibank continues to consolidate its unique business model in Brazil, which combines profitability and sustainable growth. With more than 1,000 Smart Hubs operating across Brazil and approximately 3.6 million active clients, the bank recorded growth of over 50% in its credit portfolio over the past year, reaching an ROE of 46.4%. The improvement in delinquency levels, with the portfolio overdue by more than 90 days dropping to 2.9% at the end of September 2024, highlights the bank’s strength and its ability to maintain consistent and sustainable performance.
The full report, as published by the rating agency, can be accessed here.