GCR Upgrades TrustBanc Holdings Issuer Ratings, Outlook Stable
GCR Ratings has upgraded TrustBanc Holdings Limited’s national scale long- and short-term issuer ratings to BBB+ (NG)/A2 (NG) from BBB (NG)/A3 (NG), with a stable outlook.
The ratings upgrade reflects TrustBanc Holdings Limited’s good risk profile and strong financial leverage metrics, which are driven by regular equity injection, GCR said in a new report.
The firm explained that TrustBanc Holdings issuer ratings also consider the group’s stable funding structure and adequate liquidity against its modest competitive position.
Ratings analysts acknowledge TrustBanc as a diversified financial services group, with operations in asset management, microfinance banking, capital management, and corporate finance.
“While growth was noted across major subsidiaries, the group’s competitive position remains constrained by its small size, with assets under management (AUM) and loan book size registering at less than 1% of the industry, lower operating revenues relative to peers, and riskier lending environment.
“Nonetheless, we envisage an improvement in the group’s earning profile in the near term with the intended diversification into insurance brokerage and acquisition of an issuing house license”, GCR explained.
The group’s AUM grew to NGN65.1 billion as of 31 October 2025 from NGN47.5 billion Dec 2024, underpinned by the launch of a new fund as well as growth in the existing funds.
TrustBanc also continues to build a digital footprint with its mobile application – “Prime”, which has supported customer acquisition for the microfinance subsidiary, GCR highlighted, supporting the group credit ratings upgrade.
GCR said the group has obtained approval to operate their digital lending platforms from the Federal Competition & Customer Protection Commission (FCCPC), which will further strengthen its digital lending business and is expected to enhance earnings.
Ratings analysts stated that the sustained growth trajectory has supported the achievement of its FY2024 operating revenue as of 31 October 2025, registering at NGN3.5 billion, although this still lags peers.
The group’s plans to incorporate an insurance brokerage subsidiary and other financial services operations could further support business diversification and earnings capacity over the outlook period of 12-18 months, GCR said.
The ratings upgrade acknowledged that TrustBanc’s capital and leverage assessment as a ratings strength, underpinned by an improved GCR leverage ratio.
The group’s shareholders’ funds of NGN22.5 billion as of 31 October 2025 strengthened the GCR leverage ratio to 24.6% from 22.8% in 31 December 2024.
“This was as a result of the additional NGN5 billion equity injected into the business after about NGN3 billion was injected in 2024. Looking ahead, we expect the GCR leverage ratio to be sustained above 20.0%, on the back of a conservative growth as well as a stronger capital base”.
According to the ratings note, the group’s risk position boosted the upgrade. As of 31 October 2025, the non-performing loans (NPLs) ratio and credit loss ratio registered at 0.2% and 0.6% respectively from 0.1% and 1.0%, respectively, as of 31 December 2024, while loan loss reserve coverage of NPLs was over 100%.
TrustBanc Holdings’ obligor concentration in the loan portfolio also improved, with the top 20 largest exposures accounting for 36.3% of gross loans as of October 2025 versus 41.8% in December 2024. Ratings analysts said they expect TrustBanc’s asset quality metrics to be stable and stronger than the industry’s average over the outlook horizon.
The ratings note highlighted that TrustBanc has a moderately diversified funding base comprising 96.5% managed funds, 3% customer deposits and 0.5% commercial papers.
“Although we acknowledge the improvement in the cost of funds, it still remains high at 13.7% during the first 10 months of 2025 from 15.8% in 2024, due to the nature of funding and the high-interest rate environment.
The group’s liquidity remains adequate, according to ratings analysts, with the GCR liquid assets coverage of customers deposits and wholesale funding registering at 73.0% and 143.7x, respectively, as of October 2025 (December 2024: 64.9% and 12.5x).
Ratings analysts expect the group’s committed lines of credit with financial institutions to provide further liquidity support when needed. “We expect the group’s funding and liquidity profile to remain stable over the outlook period,” GCR said in the ratings note.
The stable outlook reflects GCR’s expectation that TrustBanc will maintain its effective credit risk management practices and stable funding structure.
Ratings analysts said in addition, they project the GCR leverage ratio to remain above 20% over the next 12–18 months, backed by strong shareholder support and improved earnings generation and retention. Naira Depreciates N1,454 as FX Demand Eclipses Market Supply
