MicroRate Performance Report on LAPO

LAPO Microfinance Bank Limited (LAPO MfB) having operated as a licensed state since 2010, covers as of June 2012, 27 states (out of 36) with a network of 290 branches. It serves 453,581 borrowers for a loan portfolio of US$93.5 million and an average loan size of US$206. It collects member deposits totaling US$51 million. LAPO MfB received a license from the Central Bank of Nigeria (CBN) in July 2012 to operate with national coverage.


Rating Rationale
The Beta plus rating reflects LAPO MfB’s dominant market position, excellent portfolio quality, good methodology for its main lending product – group lending – and strong finances.
Short term challenges include necessary improvements in its new individual lending product and implementation of a new management information system which will tie together the far-flung network of nearly 300 branches.
In the longer term LAPO faces the task of broadening its ownership structure; the Bank is wholly owned by the NGO (88%) which gave rise to the institution and by its founder, who is also the Bank’s CEO.

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