GCR revises Quest Merchant Bank’s outlook to stable

Global Credit Rating (GCR), Africa’s rating agency, has revised Quest Merchant Bank Limited outlook to ‘Stable’ from its previous ‘Rating Watch Negative.’

According to the rating agency, the revised stable outlook is anchored on the bank’s sound risk profile, improved capitalisation and strong liquidity, alongside the successful transition of its ownership structure following the recent acquisition by EverQuest LLP after the divestment by FBN Holdings.

The rating agency also highlighted the bank’s strong presence within Nigeria’s merchant banking sector, where Quest Merchant Bank accounted for c.30percent of the sub-sector’s total assets as of 31 December 2025, reinforcing its position as one of the country’s leading merchant banking institutions.

“This outlook revision is a strong signal of confidence in the future of Quest Merchant Bank and the progress we have made in strengthening our organisation over the last year,” Afolabi Olorode, acting managing director/CEO, Quest Merchant Bank Limited, stated.]\

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He added that the bank strengthened its market position following GCR Ratings’ affirmation of the bank’s national scale issuer ratings of BBB(NG) and A3(NG).

Accordingly, Quest Merchant Bank’s asset quality and liquidity profile also remained key strengths underpinning the ratings affirmation.

The bank maintained a non-performing loan

(NPL) ratio of 3.2 percent, significantly below the broader banking industry average, while continuing to sustain strong liquidity metrics and resilient earnings performance.

GCR also recognised the strategic value of the Bank’s relationship with Custodian Investment Plc, noting the potential for expanded business opportunities, operational synergies and stronger profitability over time.

“Beyond the ratings action itself, this recognition reflects the resilience of our business, the quality of our balance sheet, and the confidence our clients, partners and stakeholders continue to place in the Bank,” he stated.

According to Olorode, the bank emerged from a defining transition period stronger, well-capitalised and better positioned to capture the opportunities ahead. “We remain committed to delivering innovative solutions, creating long-term value and supporting economic growth across the sectors we serve.”

According to him, the stable outlook reflects GCR’s expectation that Quest Merchant Bank will continue to maintain sound asset quality, stable funding and strong liquidity metrics over the next 12 to 18 months, further reinforcing confidence in the bank’s long-term strategic direction and operating fundamentals.