Quest Merchant Bank Limited has recorded another major milestone in its growth journey as GCR Ratings affirmed the Bank’s national scale issuer ratings of BBB(NG) and A3(NG), while revising its outlook from Rating Watch Negative to Stable.
The latest ratings action reflects growing confidence in the Bank’s financial stability, liquidity strength, improved capitalization, and long-term growth prospects following a significant transformation phase for the institution.
According to GCR Ratings, the Stable Outlook is supported by Quest Merchant Bank’s solid risk management framework, resilient liquidity position, and strengthened capital base, alongside the successful transition in the Bank’s ownership structure after its acquisition by EverQuest LLP following the divestment by FBN Holdings.
The rating agency also acknowledged the Bank’s strong standing within Nigeria’s merchant banking industry, noting that Quest Merchant Bank accounted for approximately 30 percent of the sub-sector’s total assets as of December 31, 2025. This performance further reinforces the Bank’s position as one of the leading players in Nigeria’s merchant banking space.
Further boosting investor and market confidence was the successful completion of the Bank’s ₦42.9 billion capital raise in March 2026 in compliance with the Central Bank of Nigeria’s revised minimum capital requirements. GCR stated that the fresh capital injection is expected to further strengthen the Bank’s capital adequacy ratio and position it for the next phase of strategic expansion and business growth.
Quest Merchant Bank also sustained strong asset quality and liquidity metrics, which remained central to the ratings affirmation. The Bank maintained a Non-Performing Loan (NPL) ratio of 3.2 percent, significantly below the industry average, while continuing to deliver resilient earnings and strong liquidity performance.
GCR further highlighted the strategic relationship between Quest Merchant Bank and Custodian Investment Plc, noting that the partnership presents opportunities for enhanced operational synergies, expanded business opportunities, and stronger profitability over time.
Commenting on the development, the Acting Managing Director and Chief Executive Officer of Quest Merchant Bank Limited, Afolabi Olorode, described the outlook revision as a strong endorsement of the Bank’s strategic direction and operational resilience.
According to him, the development reflects the remarkable progress the institution has made over the past year in strengthening its balance sheet, improving operational efficiency, and reinforcing stakeholder confidence.
“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 organization over the last year.
“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.
“We have emerged from a defining transition period stronger, well-capitalized 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 stated.
GCR noted that the Stable Outlook reflects its expectation that Quest Merchant Bank will continue to maintain strong asset quality, stable funding structure, and robust liquidity metrics over the next 12 to 18 months, reinforcing confidence in the Bank’s long-term operating fundamentals and strategic growth direction.