Augusto & Co. has upgraded the ratings assigned to Globus Bank Limited to “A” (long term) and “A1” (short term), with a stable outlook.
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The rating upgrade reflects the Bank’s good asset quality on the back of a conservative approach to risk asset creation. Strong shareholder support, which underpins the good capitalisation as well as good profitability and liquidity profiles collectively uphold the rating.
A statement on the Rating company’s website state that the rating is constrained by obligor concentration, low market share and the challenging macroeconomic environment. A “3” ESG score has also been attached to the rating, reflecting our view that environmental, social and governance issues are material to the Bank’s credit risk profile.
Nairametrics reported that Global Credit Ratings’ (GCR) also upgraded the Bank’s rating from “BBB-(NG)” to “BBB(NG)”, with a Stable Outlook, was driven by improved competitive positioning, stronger earnings performance, enhanced capital buffers, and sound asset quality. The Stable Outlook reflects expectations of sustained business growth supported by strong governance and disciplined risk management.
About the Company
Globus Bank is a commercial bank with National Authorization. Registered as a limited liability company on March 6, 2019, licensed by the Central Bank of Nigeria on July 10, 2019, and commenced operations on November 6, 2019, the Bank aims to be Nigeria’s foremost digital Bank, providing best-in-class solutions that are specifically tailored towards meeting customer needs in a timely and efficient manner.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
