Globus Bank received an enhanced investment grade rating following an assessment of the bank’s credit rating by two rating agencies: Agusto & Co and Global Credit Rating (GCR). Agusto & Co. upgraded the credit rating from its initial ‘Bbb-‘ rating to ‘Bbb+’ during the current year, while GCR affirmed an investment grade rating of ‘Bbb-‘ with Outlook Positive.
August & Co. The upgrade of Globus Bank Limited’s rating from “Bbb-” to “Bbb+” was due to the improvement in the bank’s strong shareholder support, as reflected in the successful capital increase exercise culminating in the issuance of a national banking license from the Central Bank. of Nigeria (CBN). The main shareholders and board members are well diversified and have significant industry experience that supports the Bank in acquiring clients, particularly large companies in different sectors of the economy.
Agusto & Co further assigned an ESG score of “3” as they believed that the bank’s commitment to enshrining environmental, social and corporate governance issues in its operations has a substantial contribution to the bank’s credit rating.
GCR too affirmed Globus Bank Limited’s long and short-term national scale issuer ratings of BBB-(NG) and A3(NG) respectively; with a Stable Outlook. The affirmation of the Bank’s ratings confirms its strong risk culture, good funding and liquidity profile while remaining competitive.
The ratings of both agencies reflect Globus Bank’s solid strategy supported by its
excellent growth and profitability with a solid governance and risk management framework.
The bank’s revenue is driven by stable sources, with interest income from loans to the full
interest income registering more than 70% in June 2022 (December 2021: 57.2%; December 2020:
26.1%). The competitive position is constrained by a short track record, the risk of concentration in
terms of the twenty largest debtors as of December 2021 and limited geographic coverage
Globus Bank provides core banking services to a large number of clients including businesses,
commercial and retail segments through a network of 21 branches, agency associations, as well as
as a greater digitalization of the platforms, which allows a greater reach of clients and penetration in the market.
… Rating agencies, Agusto & Co. and GCR upgrade Globus Bank’s credit rating Read more at … Naijaonpoint.