Feyisayo Popoola
FBNQuest Merchant Bank has been assigned an ‘A’ rating by Agusto and Co. Limited.
The bank said in a statement that the rating recognised its good capitalisation and profitability during the period, supported by its acceptable asset quality, investment banking expertise and trading activities.
The statement read in part, “The rating assigned to FBNQuest Merchant Bank Limited reflects the its 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 N5.2tn ($15.7bn at N331/$) as at December 31, 2017.
“FBNQuest MB ranked first on local currency deposits of the five merchant banks operating in Nigeria as at the end of the financial year end of 2017, but ranked fourth by total assets and contingents. The Bank has an experienced and stable management team which provides oversight of its daily operations.
“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 bank described Agusto and Co as the first credit rating agency in the country and a pan-African leader in credit ratings and credit reports.
It added that the agency, which had assigned over 1,500 ratings across various sectors, was globally recognised for its ratings and wide client base.
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