Agusto & Co. and Global Credit Rating Boost Globus Bank’s Credit Rating
The investment outlook of Globus Bank has received a significant boost on its improved investment Grade rating following a re-appraisal of the bank’s credit rating by top line rating agencies Agusto & Co. and Global Credit Rating (GCR). Agusto & Co upgraded the bank from a maiden rating of ‘Bbb-‘ to ‘Bbb+’.
The upgrade by Agusto & Co. was hinged on the bank’s strong shareholders’ support as reflected in the successful capital raise of N15.1billion and subsequent license upgrade to a Commercial Bank with National Authorization in 2021 by the Central Bank of Nigeria (CBN).
With the upgraded license, the bank has since established branches in the North, South-East, South-South, and South-Western parts of Nigeria. 21 branches of Globus Bank are currently operational across the country.
The Bank is poised to take its core capital above N50.0billion by the end of 2022 financial year.
An ESG score of “3” was further awarded reinforcing the bank’s commitment to enshrining Environmental, Social and Governance best practices in its operations.
Similarly, GCR reaffirmed Globus Bank Limited’s National scale long and short-term issuer ratings of BBB-(NG) and A3(NG) respectively, with a Stable Outlook.
The rating agencies highlighted key performance indicators that included a strong capital base with Capital adequacy of 39.5% exceeding the regulatory minimum of 10%, high quality risk assets with zero (0%) Non-Performing Loan ratio compared to the industry average of 5.2%, liquidity ratio of 48% remains above the regulatory threshold of 30% and a pre-tax ROE of 38.23% up from 2020 position of 25.6% all led to this positive outcome.
Globus Bank commenced operations as a regional bank on November 6, 2019 and was upgraded to a national bank in November 2021.