FBNQuest Merchant Bank has been assigned ‘A’ rating by Agusto & Co. Limited, according to a statement published Friday, on the website of the rating agency.
The rating agency said the rating reflects the bank’s affiliation with FBN Holdings, the non–operating holding company of one of the largest banking and financial services organisations in Africa with an asset base of ₦5.2 trillion($15.7 billion @ S58;331/$) as at 31 December 2017.
The bank was ranked first on local currency deposits of the five merchant banks operating in Nigeria as at FYE2017, but ranked fourth by total assets and contingents due to its experienced and stable management team which provides oversight of its daily operations.
The rating recognises FBNQuest MB’s good capitalisation and good profitability during the period, supported by its acceptable asset quality, investment banking expertise and trading activities.
“Nonetheless, FBNQuest MB’s rating is constrained by concentration in its loan portfolio which renders it vulnerable to adverse changes in the performance of its lending sectors and obligors. The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such.” The rating agency said in a press statement.
Agusto & Co is Nigeria’s first Credit Rating Agency and a Pan African leader in credit ratings and credit reports.
It has assigned well over 1,500 ratings across various sectors. Our ratings are globally accepted, and a wide client base utilizes our ratings as benchmark for business.
