By Dipo Olowookere
The ability of FBNQuest Merchant Bank to meet its obligations to clients has been confirmed by a notable local rating agency, Agusto & Co.
Agusto recently affirmed an “A” rating on the financial institution with a stable outlook based on “satisfactory asset quality, improving profitability and better capitalisation ratios.”
FBNQuest is a subsidiary of FBN Holdings Plc, a financial group with interests in commercial banking, pension custody, trusteeship, asset management and stockbroking.
Though Agusto admitted in a press release that the financial leverage of FBNQuest was good, it warned that the COVID-19 pandemic could cause a major threat because of its impact on the macroeconomy and business environment.
It further noted that situation could further cause “persistent sector and obligor concentration risks in the loan book, a subpar funding and operating cost profile relative to its peers.”
But FBNQuest Merchant Bank, while reacting in a statement made available to Business Post, expressed its commitment to continue to deliver value.
The organisation noted that its performance over the years has been reflective of a dedicated strategy to deliver increased value to clients by virtue of a wide product range and deep talent pool.
The bank said its value proposition leverages on the strength of the FBN brand, heritage and expertise to provide bespoke financial solutions, noting that its subsidiaries provide partnerships that enhance the delivery of the organisation’s overall business strategy.
According to the Managing Director of FBNQuest Merchant Bank, Mr Kayode Akinkugbe, “We remain committed to being a trusted wealth manager with strong investment banking capabilities.”
On the rating, he said, “We are pleased to have been assigned an “A” rating from Agusto & Co. in spite of the current headwinds.”
FBNQuest was recently recognised as the winner of the Deal of Year (Africa) at the 2020 Banker Deals of the Year Awards; the Best Asset Manager (Nigeria) at the 2020 EMEA Finance African Banking Awards; and the Debt Deal Of The Year at the 8th BAFI Awards.
