Agusto & Co. said on Thursday that it has assigned an “A” rating to FBNQuest Merchant Bank Limited. The rating 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 ₦5.2 trillion as at 31 December 2017.
According to Agusto & Co., FBNQuest MB 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.
It however said the wholesale bank’s rating is constrained by concentration in its loan portfolio which renders it vulnerable to adverse changes in the performance of its lending and obligors.
Agusto & Co.’s Credit Ratings are accepted globally and a wide client base utilizes its reports as a benchmark for business.
