FBNQuest Merchant Bank has been assigned ‘A’ rating by Agusto & Co. A statement published on the website of the rating agency explained that 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.

The statement further said: “The rating assigned to FBNQuest Merchant Bank Limited (‘FBNQuest MB’ or ‘the Bank’) 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 ($15.7 billion @ ₦331/$) as at 31 December 2017.

“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.

“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.”

Agusto & Co is Nigeria’s first Credit Rating Agency and a Pan African leader in credit ratings and credit reports. It has assigned well over 1,500 ratings across various sectors.