Afolabi Olorode, the bank’s Acting Managing Director and Chief Executive Officer, said the institution would continue to improve its capabilities, strengthen its operations and position itself to take advantage of emerging opportunities in Nigeria’s financial services sector.

The ratings agency upgraded the bank’s national-scale long-term issuer rating from BBB(NG) to BBB+(NG) and its short-term rating from A3(NG) to A2(NG). It also revised the outlook from Stable to Positive.

Olorode described the ratings decision as recognition of the bank’s efforts to strengthen its business and establish a foundation for sustainable growth. He said management remained focused on improving performance, delivering value to customers and building a stronger institution.

GCR’s assessment highlighted Quest Merchant Bank’s position within Nigeria’s merchant banking sector. The bank accounted for approximately 30 per cent of the sector’s total assets as of December 31, 2025, according to the rating agency.

The agency also identified the bank’s financial profile, liquidity position, earnings performance and risk management as important factors in the upgrade.

Quest Merchant Bank reported a non-performing loan ratio of 3.2 per cent at the end of December 2025. Its liquidity position was also assessed as strong as of June 30, 2026.

GCR expects the bank’s financial profile and competitive position to remain broadly stable over the following 12 to 18 months, supported by its scale, earnings capacity and anticipated business growth.

The positive outlook indicates the agency’s expectation that the bank’s market position and financial profile could strengthen further as its operations expand. However, a positive outlook is not a guarantee of future rating upgrades or financial performance.

The latest ratings decision marks a change from the agency’s April 2026 assessment, when it maintained the bank’s ratings at BBB(NG) and A3(NG) with a Stable outlook.

Olorode said Quest Merchant Bank would continue to build on the progress recognised by the rating agency, with a focus on strengthening its capabilities and improving the value it provides to clients.

The development comes as the bank seeks to consolidate its position in Nigeria’s merchant banking industry and sustain growth in a financial environment where liquidity, asset quality and effective risk management remain important measures of institutional strength.

Reporting by TalkNaijaMedia