Agusto & Co. affirms FBNQuest Merchant Bank Limited’s ‘A’ rating, with a stable outlook.
The rating expires on 30 June 2022.
The rating assigned to FBNQuest Merchant Bank Limited (‘FBNQ MB’ or ‘the Bank’) reflects its franchise upheld by the affiliation with FBN Holdings Plc, one of Nigeria’s largest financial institutions with interests in commercial banking, pension assets custody, trusteeship, asset management and stockbroking. The rating also takes into consideration the Bank’s strong presence in the investment banking space in Nigeria, good capitalisation, strong liquidity, acceptable asset quality and improving profitability. However, constraining these positive rating factors are the persistent concentration in the loan book, high funding and operating cost profile amidst the prevailing macroeconomic headwinds.