Fitch Assigns Globus Bank ‘B-‘ Rating, Stable Outlook

Fitch Ratings has assigned Nigeria-based Globus Bank Limited a Long-Term Issuer Default Rating (IDR) of ‘B-‘ with a Stable Outlook. The bank was also assigned a Viability Rating (VR) of ‘b-‘ and a National Long-Term Rating of ‘BBB(nga)’ with a Stable Outlook.

According to Fitch, Globus Bank’s Long-Term IDR is driven by its standalone creditworthiness, as expressed by its VR, which captures the concentration of the bank’s operations in Nigeria’s challenging operating environment, its modest domestic market share, a record of rapid growth and an unseasoned loan book.

Fitch said the VR also reflected its good asset quality and profitability metrics, and adequate capital buffers, which will be flattered by continuing fast growth in the medium term. “The VR is one notch below the ‘b’ implied VR due to the bank’s business profile, reflecting its small franchise and evolving business model.

“Globus Bank’s National Long-Term Rating of ‘BBB(nga)’ also reflects its small domestic franchise, a record of rapid growth and an unseasoned loan book, balanced by good financial profile metrics. Globus Bank has a small market share, representing one per cent of domestic banking system assets, which constrains its pricing power. The bank combines traditional banking with digital acquisition channels, supporting fast balance-sheet growth.

“As a challenger bank, Globus Bank has been growing much faster than the sector average in recent years. However, its loan book was small as a percentage of total assets at 27 per cent at end-2025, dominated by short-term working-capital financing. The bank’s risk profile is conditioned by large investments in Nigerian debt securities, which were about half of total assets at end-2025

“Globus Bank’s loan quality metrics have been sound, with zero impaired loans reported in 2025, while Stage 2 loans were a small three per cent of gross loans. We expect the bank to continue reporting sound loan-quality metrics in the medium term, although a modest increase in the impaired loans ratio is likely due to the loan book seasoning.

“Operating profit-to-risk-weighted assets (RWA) ratio was a high 10% in 2025, supported by wide net interest margin, strong non-interest income and low RWA density. We expect profitability metrics to remain strong in 2026, albeit lower than in 2025, reflecting normalisation after fast growth.

“The FCC ratio was a high 23.7% at end-2025, but should be viewed in light of fast balance-sheet growth. Globus Bank finalised capital raising intended to comply with the higher paid-in capital requirement in 1Q26, and we expect the FCC ratio to remain high in 2026 before declining in 2027 as RWA growth remains strong.

Customer deposits dominated Globus Bank’s funding profile (end-2025: 93% of total funding) and were mainly sourced from corporate customers (80% of the total). Local-currency (LC) liquidity is mainly in the form of investments in debt securities, while FC liquidity is represented by cash, short-term interbank placements and investments in Nigerian Eurobonds. Liquidity coverage of customer deposits is good in both LC and FC.