FBNQuest Merchant Bank Limited

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FBNQuest Merchant Bank Limited (2021-12)
  • FBNQuest Merchant Bank Limited
  • Year : Dec 2021
3 Tokens
USD 300.00
Summary

FBNQ MB’s funding and liquidity is assessed at an intermediate level. The bank is predominantly funded through customer deposits, which accounted for 65.9% of funding base at FY20. In line with trends across the merchant banking subsector, the bank’s deposit book largely titled towards the expensive term deposits, constituting a sizeable 99.5% of the deposit book at FY20. This notwithstanding, the relatively low interest environment saw average cost of funds moderate to 2% in FY20 from 10.5% in FY19.

Additional Information

The Group acquired 100% interest in Kakawa DH in October 2014 and subsequently secured regulatory approval to commence operations as a merchant bank in May 2015. Following the strategic decision of the Group in 2017, its investment banking division (FBNQuest Securities Limited and FBNQuest Asset Management Limited) were acquired by FBNQ MB as subsidiaries. As a result, the range of services provided by the merchant banking group (“sub-group”) increased. The stable outlook reflects GCR’s expectation that FBNQ MB’s asset quality metrics would remain within a sound range over the rating horizon, underpinned by gradual macroeconomic environment rebound, albeit with the loan portfolio concentration by obligor.

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