GCR Affirms Premium Trust Bank Credit Ratings, Revises Outlook
GCR Ratings has affirmed Premium Trust Bank Limited’s national long- and short-term issuer ratings of A-(NG) and A2(NG), respectively, and revised the outlook from stable to positive.
Premium Trust Bank’s ratings reflect strong capitalisation, a sound risk profile, and a good funding structure, against a modest competitive position reflected in an evolving brand franchise and operational scale.
Ratings analysts said Premium Trust Bank is one of Nigeria’s fast-emerging banks, with an operating track record of about four years.
In 2025, the bank’s customer base rose to about 600,000, up from 260,000 in 2024, supported by its expanding branch network and digitally enabled services.
Consequently, total assets increased by 64.0% to NGN1.6 trillion or USD1.2 billion as of 31 December 2025 and further to NGN1.9 trillion or USD1.4 billion.
The bank’s operating revenue increased by 114.0% to NGN234.5 billion or USD163.2 million in 2025, supported by a stable revenue mix of net interest income and fee income, which contributed 85.9% and 14.1%, respectively.
However, the bank’s competitive position remains constrained by a modest market share of about 1% of the Nigerian banking sector resources as of 31 December 2025.
GCR said continued implementation of its digital strategy and other expansion initiatives could drive further growth in operational scale, customer acquisition, and earnings over the next 12 to 18 months.
Ratings analysts said the bank’s capitalisation is a key rating strength, supported by strong internal capital generation and its robust loss-absorbing capital base.
As of 31 August 2026, the GCR core capital ratio was 36.8%, down from 40.8% in 2025, and remains within the high band of our assessment.
Over the next 12-18 months, we expect the ratio to range between 27.0% and 32.0%, balancing strong earnings accretion against projected growth in risk-weighted assets and operational expansion.
The bank’s risk position remains sound, according to GCR, with gross non-performing loans (NPL) and credit loss ratios at a moderate 0.1% and 0.7%, respectively, as of 31 August 2026 versus 0.2% and 1.4% in 2025.
Ratings analysts said nonetheless, the bank’s loan portfolio remains at an evolving stage, with the adequacy of risk management practices yet to be fully tested.
“We will continue to assess this over the outlook horizon”, ratings analysts said. GCR considered the bank’s foreign currency (FCY) risk minimal, as FCY loans accounted for just 2.6% of gross loans as of 31 August 2026.
However, the ratings agency said Premium Trust Bank’s counterparty concentration remains high, with the single largest obligor and the twenty largest obligors accounting for 5.0% and 63.0% of gross loans, respectively, versus 12.0% and 62.0% in 2025.
However, ratings analysts expect this to moderate over time as the loan book grows. “Looking ahead, we expect the asset quality metrics to remain sound, supported by prudent underwriting and active monitoring as the portfolio seasons”.
The ratings note stated that the bank’s funding and liquidity are positive rating factors, supported by a stable funding structure and an adequate liquidity position.
GCR said in the ratings note that Premium Trust Bank is funded by a mix of customer deposits and borrowings, which accounted for 49.2% and 50.8% of the funding base, respectively, as of 31 August 2026, up from 61.0% and 39.0% in 2025.
These borrowings are mainly repurchase agreement (repo) transactions that are fully collateralised by underlying government securities, ratings analysts said in the update.
The deposit book is well diversified, GCR said, with the single and twenty largest depositors accounting for 4.0% and 32.8% respectively as of 31 August 2026 versus 7.0% and 44.4% in 2025.
Additionally, the bank’s GCR stable funding ratio and long-term funding ratio are strong at 96.5% and 77.3%, respectively, as of 31 August 2026.
Liquidity remained adequate, with GCR liquid assets covering 53.1% of customer deposits as of 31 August 2026, down from 58.6% in 2025.
However, GCR said coverage of wholesale funding remained below 1.0x due to sizeable repo transactions. Positively, ratings analysts said the bank’s regulatory liquidity ratio is robust, registering at 71.1% as of 31 December 2025, well above the regulatory minimum of 30% for commercial banks in Nigeria.
The positive outlook reflects the expectation that Premium Trust Bank’s business profile will strengthen as it continues to implement its strategic plans to expand operational scale and enhance its competitive position over the rating horizon.
Additionally, the bank’s capitalisation is expected to remain strong, with the GCR core capital ratio projected to remain between 27.0% and 32.0% over the next 12 to 18 months, supported by sustained strong earnings accretion.
The bank’s asset quality is also expected to remain sound, supported by its credit management processes. Banking System Surplus Liquidity Tops N6trn Ahead of Huge Inflows
