Globus Bank Receives Inaugural Fitch Ratings

Globus Bank Limited, a national commercial bank based in Lagos, Nigeria, has received its inaugural credit rating from Fitch Ratings, marking a significant milestone in the institution's history. On April 2, 2026, Fitch assigned the bank a Long-Term Issuer Default Rating (IDR) of ‘B-‘ with a Stable Outlook, alongside a Viability Rating (VR) of ‘b-‘ and a National Long-Term Rating of ‘BBB (nga)’ with a Stable Outlook. This rating comes amid a period of robust growth and financial discipline for the bank, which has positioned itself as a leader in Nigeria’s evolving financial landscape. The rating reflects Globus Bank’s solid financial foundation, including a clean loan portfolio with zero impaired loans, strong profitability, and an adequate capital position. These factors were evaluated against the backdrop of Nigeria’s economic challenges, though the country has shown signs of gradual improvement. Fitch highlighted the bank’s ability to maintain asset quality, noting that Stage 2 loans accounted for just 3% of gross loans as of 2025. The agency also praised the bank’s operating profit-to-risk-weighted assets ratio of 10%, driven by a wide net interest margin, robust non-interest income, and low risk-weighted asset density. Globus Bank’s FY2025 results underscored its impressive growth trajectory. Profit Before Tax reached ₦107.7 billion, while Profit After Tax amounted to ₦82.6 billion. Total assets surged by 64% to ₦2.58 trillion, up from ₦1.57 trillion in 2024. This growth was accompanied by a strengthened capital base, with the bank achieving a Fitch Core Capital (FCC) ratio of 23.7% at year-end. The bank successfully completed its recapitalization effort in early 2026, raising over ₦200 billion in total paid-up capital to meet Central Bank of Nigeria (CBN) requirements for nationally authorized commercial banks. Customer deposits formed the backbone of Globus Bank’s funding structure, comprising 93% of total funding at the end of FY2025. Corporate clients made up 80% of this deposit base, indicating a strong institutional presence. Fitch assessed the bank’s liquidity as favorable, with local currency liquidity primarily held in Nigerian debt securities and foreign currency liquidity maintained through cash reserves, short-term interbank placements, and investments in Nigerian Eurobonds. Elias Igbinakenzua, Chief Executive Officer of Globus Bank, expressed pride in the rating, stating it validated the bank’s commitment to excellence. He emphasized that the rating reinforced the bank’s philosophy of leadership and innovation, positioning it as a pioneer in the Nigerian banking sector. Looking ahead, Fitch assigned a Stable Outlook, signaling confidence in the bank’s near-term prospects. The agency expects profitability to remain resilient in 2026, bolstered by the bank’s continued growth and capital strength. A potential rating upgrade could occur if the bank expands its domestic market share, maintains profitability levels, and sustains asset quality even as it grows. Additionally, improvements in Nigeria’s sovereign rating or enhancements in the overall operating environment could further support a positive rating action. This rating follows recent upgrades from domestic agencies such as Agusto & Co., reinforcing Globus Bank’s standing among Nigerian financial institutions. As the bank continues to expand its footprint and refine its operations, its performance will likely remain under close scrutiny by investors and regulators alike.