Nigerian banks are stable, says report by Fitch

Global rating agency Fitch Ratings has affirmed that several Nigerian banks have intrinsic strengths to maintain stable business outlook, despite macroeconomic challenges.

In its latest ratings report, Fitch stated that Nigeria’s largest banks and many others have sufficient buffers to remain stable in the face of macroeconomic challenges.

Fitch affirmed the banks’ ratings of Long-Term IDR at ‘B-’ as well as the National Long-Term Ratings with Stable Outlooks. The banks are: Access Bank Plc; Zenith Bank Plc; United Bank for Africa (UBA) Plc; Jaiz Bank Plc; Guaranty Trust Holding Company Plc (GTCO) and its flagship Guaranty Trust Bank Limited (GTB); FBN Holdings Plc and its flagship subsidiary, First Bank of Nigeria Ltd; Fidelity Bank Plc and Wema Bank Plc. Fitch Ratings also affirmed the National Long-Term Ratings of Stanbic IBTC Holdings Plc and its flagship subsidiary, Stanbic IBTC Bank Plc at ‘AAA (nga)’ with a Stable Outlook.

“The affirmation of the other Nigerian banks’ and bank holding companies (BHCs)’ Long-Term IDRs and National Ratings reflects Fitch’s view that these issuers (banks) are likely to remain compliant with their respective regulatory minimum capital adequacy ratio (CAR) requirements despite the devaluation, with sufficient buffers and pre-impairment operating profits to tolerate a further moderate naira depreciation.”