Quest Merchant Bank earns stable outlook from GCR

By Chinwendu Obienyi

Quest Merchant Bank Limited has strengthened its standing in Nigeria’s merchant banking space after GCR Ratings revised its outlook to Stable from Rating Watch Negative, while affirming the bank’s national scale issuer ratings of BBB(NG) and A3(NG).

The ratings action reflects improved confidence in the bank’s financial position, liquidity strength, capital base and growth prospects following a period of ownership transition and strategic repositioning.

GCR said the Stable Outlook was supported by Quest Merchant Bank’s sound risk profile, improved capitalization and successful completion of its ownership transition after EverQuest LLP acquired the institution following the divestment by FBN Holdings.

The rating agency also highlighted the bank’s growing influence in the merchant banking segment, noting that Quest Merchant Bank accounted for about 30 per cent of the sub-sector total assets as of December 31, 2025.

The bank’s position was further strengthened by its successful N42.9 billion capital raise completed in March 2026, which aligned with the Central Bank of Nigeria’s revised minimum capital requirements. According to GCR, the fresh capital is expected to improve the bank’s capital adequacy and support future expansion.

GCR also cited Quest Merchant Bank’s asset quality and liquidity profile as key factors supporting the rating decision. The bank maintained a non-performing loan ratio of 3.2 per cent, below the industry average, while sustaining strong liquidity and earnings performance.

The rating agency noted that the bank’s relationship with Custodian Investment Plc could create additional growth opportunities through operational synergies and expanded business opportunities.

Speaking on the development, Acting Managing Director/Chief Executive Officer of Quest Merchant Bank, Afolabi Olorode, said the outlook revision reflected confidence in the bank’s transformation journey.

He said: “This recognition reflects the resilience of our business, the quality of our balance sheet, and the confidence our clients, partners and stakeholders continue to place in the Bank.

“We have emerged from a defining transition period stronger, well-capitalised and better positioned to capture the opportunities ahead.” GCR expects Quest Merchant Bank to sustain sound asset quality, stable funding and strong liquidity over the next 12 to 18 months, reinforcing confidence in its strategic direction.