Rating Agencies Reaffirm Globus Bank National Credit Rating of A-, Stable Outlook

Globus Bank said Nigeria’s foremost rating agencies, Agusto & Co last month, affirmed its A- rating, describing the bank as “A financial institution of good financial condition and strong capacity to meet its obligations relative to all other issuers in the same country.”

“The rating according to Agusto & Co, reflects the bank’s good profitability, acceptable capitalization ratios, and experienced management team. Agusto & Co further assigned an ESG score of “3” in acknowledgment of the material contribution of Environmental, Social and Governance concerns in the bank’s credit risk and business operations.

“The affirmation of A- captures the bank’s quality financial condition and strong capacity to meet its obligations relative to all other issuers within the country,” the statement added.

Additionally, it said GCR Ratings likewise affirmed Globus Bank Limited’s national scale long and short-term issuer ratings of BBB-(NG) and A3(NG) respectively; with a Stable Outlook.

“The affirmation of the ratings of Globus Bank Limited is based on its well-managed risk, stable funding structure, liquidity profile and growing competitive position. Likewise, the rating signifies Globus bank’s creditworthiness and capacity for timely payment on long and short-term obligations.

“Globus Bank has opened 36 branches across the 6 geopolitical zones of Nigeria within 5 years of operation, making it the fastest organically growing commercial bank in Nigeria. The bank is financially sound with Zero NPL and a balance sheet size of N1.3trillion.

“In line with CBN capitalization policy, the bank has commenced a fresh capital raise of N50bn by way of rights and private placement, which will be concluded by September 2024.

“This will take the bank’s shareholders fund to about N132Billion by the end of 2024 financial year. The bank is very much on course to achieving its minimum capital requirement of N200bn within the period stipulated by the CBN, “the bank said.