Globus Bank Gets Ratings Upgrade from GCR on Capital Strength, Earnings Retention
GCR Ratings (GCR) has upgraded Globus Bank Limited’s national scale long- and short-term issuer ratings to BBB+(NG) and A2(NG) from BBB(NG) and A3(NG), respectively, with a stable outlook.
The upgrade reflects improved capital adequacy, supported by additional capital injections and stronger earnings retention. The ratings take into account the bank’s sound asset quality, stable funding structure, and adequate liquidity, albeit balanced against its modest competitive position.
Globus Bank, a mid-sized Nigerian bank, is expanding its footprint across key regions and leveraging technology to serve a diverse customer base.
Total assets grew by 63.8%, reaching NGN2.6 trillion (USD1.8 million) as of December 31, 2025, and further to NGN3.3 trillion (USD2.4 million) by April 30, 2026, indicating strong funding and lending growth.
However, the bank’s market share is around 1% of Nigeria’s banking sector, limiting its competitive position.
The bank’s strengthened capital position is noteworthy, with an equity injection of NGN102 billion through rights issues and private placements boosting the GCR core capital ratio to 25.2% as of April 30, 2026, up from 21.2% as of December 31, 2025.
Over the next 12-18 months, this ratio is expected to range between 22.5% and 25.0% as the bank expands its loan book while maintaining strong earnings generation.
GCR noted that Globus Bank’s risk position is strong, supported by rigorous underwriting and credit monitoring, leading to zero non-performing loans since inception.
The credit loss ratio increased to 2.8% as of April 30, 2026, from 0.7% at the end of 2025, mainly due to conservative provisioning amidst macroeconomic challenges, but it remains in line with industry averages.
Counterparty concentration risk has moderated, with the largest twenty obligors accounting for 47.1% of gross loans as of April 2026, down from 76.0% at year-end 2025. The bank’s funding and liquidity situation is a positive factor, characterised by a stable funding structure and robust liquidity profile.
Customer deposits increased by 70.3% to NGN1.6 trillion (USD1.1 billion) as of December 31, 2025, and further to NGN2.0 trillion (USD1.5 billion) by April 30, 2026. This growth was supported by technology-driven low-cost deposits, branch network expansion, and relationships with large corporates.
However, the cost of funds rose to 14.0% as of April 30, 2026, up from 13.0% at the end of 2025. Deposit concentration also increased, with the top 20 depositors accounting for 40.7% of customer deposits by April 2026, up from 33.3% in December 2025.
The liquidity ratio is strong, consistently above the regulatory minimum of 30%, with GCR liquid assets covering customer deposits and wholesale funding significantly.
The stable outlook reflects the expectation that the GCR core capital ratio will remain between 22.5% and 25.0% over the next 12-18 months, supported by internal capital generation and a solid capital base, and that asset quality metrics and liquidity profiles will also remain sound. GCR Upgrades Globus Bank Ratings with Stable Outlook
