FBNQuest Merchant Bank Limited has been assigned “A” rating by Agusto & Co.
The rating expires on June 30, 2019.
The rating assigned to FBNQuest Merchant Bank Limited, according to a statement by Agusto & Co, 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 N5.2 trillion ($15.7 billion @ N331/$) as at December 31, 2017.
FBNQuest Merchant Bank Limited 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.
The Bank has an 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.