Quest Merchant Bank Limited has strengthened its position in Nigeria’s financial services sector following the affirmation of its national scale issuer ratings of BBB(NG) and A3(NG) by GCR Ratings, alongside an outlook upgrade to stable from rating watch negative.
The ratings action represents a significant milestone for the merchant bank after a transformative period marked by changes in ownership, capital strengthening and operational growth.
According to GCR Ratings, the revised stable outlook reflects Quest Merchant Bank’s sound risk profile, improved capitalisation, strong liquidity position and the successful transition of its ownership structure following its acquisition by EverQuest LLP after the divestment by FBN Holdings.
The rating agency also highlighted the bank’s strong market presence within Nigeria’s merchant banking industry. As of December 31, 2025, Quest Merchant Bank accounted for approximately 30 per cent of the sub-sector’s total assets, reinforcing its position as one of the leading players in the merchant banking space.
A key factor supporting the positive assessment was the successful completion of the bank’s N42.9 billion capital raise in March 2026. The capital injection was executed in line with the Central Bank of Nigeria’s revised minimum capital requirements and is expected to further strengthen the bank’s capital adequacy and support future expansion plans.
GCR also pointed to the institution’s strong asset quality and liquidity profile as major strengths underpinning the ratings affirmation.
The bank maintained a Non-Performing Loan (NPL) ratio of 3.2 per cent, which remains significantly below the industry average. In addition, Quest Merchant Bank sustained robust liquidity metrics and resilient earnings performance despite prevailing economic challenges.
The rating agency further acknowledged the strategic importance of the bank’s relationship with Custodian Investment Plc, noting that the partnership could unlock additional business opportunities, operational synergies and improved profitability over time.
Commenting on the development, the Acting Managing Director and Chief Executive Officer of Quest Merchant Bank, Mr. Afolabi Olorode, described the outlook revision as a strong endorsement of the institution’s strategic direction and recent achievements.
“This outlook revision is a strong signal of confidence in the future of Quest Merchant Bank and the progress we have made in strengthening our organisation over the last year,” Olorode said.
“Beyond the ratings action itself, 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.”
He noted that the institution had successfully navigated a critical transition period and emerged stronger, with enhanced capital resources and improved capacity to pursue future opportunities.
“We have emerged from a defining transition period stronger, well-capitalised and better positioned to capture the opportunities ahead. We remain committed to delivering innovative solutions, creating long-term value and supporting economic growth across the sectors we serve,” he added.
GCR stated that the stable outlook reflects its expectation that Quest Merchant Bank will continue to maintain sound asset quality, stable funding and strong liquidity levels over the next 12 to 18 months.
The agency noted that these factors, combined with the bank’s strengthened capital position and strategic growth plans, should continue to support its operating performance and reinforce confidence in its long-term prospects.
The ratings affirmation comes at a time when financial institutions across Nigeria are adapting to new regulatory capital requirements and evolving market conditions, with stronger capitalisation and sound risk management increasingly viewed as critical drivers of sustainable growth.
