Quest Merchant Bank Limited has reinforced its standing in Nigeria’s financial services sector after GCR Ratings affirmed the bank’s national scale issuer ratings of BBB(NG) and A3(NG), while revising its outlook to Stable from Rating Watch Negative.
The ratings action represents a significant milestone for Quest Merchant Bank following a period of strategic transformation, reflecting increased confidence in the institution’s financial strength, market position, liquidity profile and long-term growth prospects.
According to GCR, the Stable Outlook is supported by the bank’s sound risk profile, improved capitalisation and strong liquidity position. The agency also cited the successful transition in the bank’s ownership structure following its acquisition by EverQuest LLP after the divestment by FBN Holdings.
GCR further highlighted Quest Merchant Bank’s growing influence within Nigeria’s merchant banking industry. As of 31 December 2025, the bank accounted for approximately 30 per cent of the sector’s total assets, underlining its position among the country’s leading merchant banking institutions.
The agency also pointed to the successful completion of the bank’s ₦42.9 billion capital raise in March 2026, undertaken in line with the Central Bank of Nigeria’s revised minimum capital requirements. According to GCR, the fresh capital is expected to strengthen the bank’s capital adequacy levels and support the next phase of business expansion.
Quest Merchant Bank’s asset quality and liquidity profile remained key factors behind the ratings affirmation. The bank maintained a non-performing loan (NPL) ratio of 3.2 per cent, significantly below the wider banking industry average, while sustaining strong liquidity metrics and resilient earnings performance.
GCR also recognised the strategic importance of the bank’s relationship with Custodian Investment Plc, noting the potential for enhanced business opportunities, operational synergies and stronger profitability over time.
Commenting on the development, Afolabi Olorode, Ag. Managing Director/CEO, Quest Merchant Bank Limited, said:
“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.”
The Stable Outlook reflects GCR’s expectation that Quest Merchant Bank will continue to maintain sound asset quality, stable funding and robust liquidity metrics over the next 12 to 18 months, further strengthening confidence in the bank’s long-term strategy and operating fundamentals.
Quest Merchant Bank is a Nigerian-licensed merchant bank providing corporate and investment banking, global markets and wealth management services to corporate, institutional and public sector clients. The institution says it remains focused on strong governance, disciplined execution and sustainable value creation.
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