Agusto & Co. affirms the ‘A’ rating assigned to FBNQuest Merchant Bank Limited, with a stable outlook
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the “A” rating assigned to FBNQuest Merchant Bank Limited (‘FBNQuest MB’ or ‘the Bank’). The rating reflects the Bank’s improving profitability, good capitalisation, declining non-performing loan ratio, and strong brand equity, upheld by the affiliation with FBN Holdings Plc, one of the largest financial service groups in Nigeria. However, offsetting these positive factors is the concentration in the loan book and deposit base. The prevailing macroeconomic and regulatory vagaries were also considered in the assigned rating. A ‘3’ ESG score has also been attached to the rating, reflecting our view that environmental, social and governance issues have a material contribution to the Bank’s credit risk.