GCR Upgrades Globus Bank Ratings with Stable Outlook
GCR Ratings has upgraded Globus Bank Limited’s national scale long term rating to BBB(NG) from BBB-(NG) and affirmed the short-term rating at A3(NG).
Concurrently, the outlook on the rating was affirmed at stable, the African markets-focused ratings agency said in its latest update on the bank.
The rating upgrade reflects Globus Bank Limited’s improved competitive position and capitalisation assessment, underpinned by additional capital injection and stronger earnings capacity, GCR said.
It stressed that the ratings also balance Globus Bank’s stable funding structure, adequate liquidity and sound asset quality metrics.
In the financial year 2024, Globus Bank’s total assets grew considerably by 102.1% to N1.6 trillion or USD1.1 billion, on the back of its growing geographical and digital presence, which supported customer growth to over 600,000 across both corporate and retail segments.
GCR said nonetheless, the bank’s competitive position assessment, although slightly improved, remains constrained by its small market share of 1% of the Nigerian banking industry resources.
Its operating revenues also increased significantly by 85.9% to NGN94.2 billion or USD65.1 million in 2024, with net interest income accounting for a sizeable 67.3% of operating revenues, reflecting earnings stability.
Ratings analysts said looking ahead, the bank’s continued expansion strategy, enhanced technology deployment, and strategic partnerships could further support operational scale and earnings growth.
Globus Bank capitalisation assessment was considered to be positive ratings factor, underpinned by earnings retention and additional capital injection.
Its GCR core capital ratio improved to 25.8% as of 31 December 2024 from 18.5% in 2023 and registered at a lower 22.0% as of 30 June 2025.
The bank’s GCR’s core capital is expected to range between 22% and 25%, balancing the bank’s ongoing recapitalisation process through a rights issue and private placements and the projected growth in the loan book.
Globus Bank’s risk position remains a major rating strength, according to GCR, supported by the stringent underwriting and credit monitoring standards.
As a result, no impaired loans have been reported since inception, while the credit loss ratio registered at a moderate 0.3% as of 31 December 2024.
Additionally, counterparty concentration risk moderated in 2024, with the top 20 obligors accounting for a lower 37.9% of the loan book as of 31 December 2024 from 43.1% in 2023.
“While the sectoral distribution of the loan portfolio reflects concentration to the manufacturing sector, diversification across sub-sectors provides some level of risk mitigation.
“Foreign exchange risk is well managed through natural hedging, with the proportion of foreign currency loans to gross loans moderating to 16.5% as of 31 December 2024 from 19.5% in 2023”.
GCR ratings analysts expect the Globus bank’s asset quality metrics to be sustained within sound levels, although remains susceptible to the challenging operating environment.
“We assessed funding and liquidity as a positive ratings factor, supported by the stable funding structure and sound liquidity profile.
“Globus Bank is largely funded by customer deposits, which constituted 94.7% of the funding base as of 31 December 2024 versus 98.3% in 2023.
“Customer deposits grew by 77% to NGN967.8 billion or USD668.8 million of 31 December 2024 and further to NGN1.0 trillion or USD679.6 million in H1 2025, driven by strategic deployment of technology and the expansion of its branch networks”, GCR stated in the ratings update.
Nonetheless, the deposit mix is largely skewed towards expensive term deposits which accounted for 36.5% of total customer deposits as of June 2025.
Consequently, interest expense as a percentage of the average funding base registered at a high of 10.0%, up from 6.5% in 2023, given the funding mix and high interest rates.
The bank’s balance sheet is sufficiently liquid, with the GCR liquid assets coverage of customer deposits at 76.1% as of 31 December 2024 from 42.3% in 2023.
Ratings analysts highlighted that the bank continues to maintain a liquidity ratio above the regulatory minimum of 30%. “We expect Globus Bank’s funding and liquidity metrics to remain at acceptable levels over the next 12-18 months”, GCR said.
The stable outlook reflects our expectation that Globus Bank will maintain a GCR core capital ratio within the range of 22.5% to 25% over the next 12-24 months, supported by internal and external capital generation.
Also, asset quality metrics are likely to remain above the industry average while the stable funding base and adequate liquidity position will be sustained over the outlook period. #GCR Upgrades Globus Bank Ratings with Stable Outlook#
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