Credit Ratings

2022

2015

Review Date	July 2015
Issuer Credit Rating	B/ Negative/ B
Group Credit Profile	b
Anchor	b+
Business Position	Moderate (-1)
Capital and Earnings	Moderate (0)
Risk Position	Adequate (0)
Funding and Liquidity	Average and Adequate (0)
Support	(0)
GRE Support	(0)
Group Support	(0)
Sovereign Support	(0)
Additional Factors	(0)
Strengths	Stable revenue and internal capital generation, despite heightened credit risks from low oil prices and a weaker naira. The ratings reflect the creditworthiness of the broader FCMB group, as S&P assessed the bank as core to the group, as S&P criteria define this term. Expectation that the bank will derive healthy margins from retail lending and maintain profitability through prudent expense management. Anticipation of a return on equity of about 14% over the next 12 months. Projection that FCMB's risk-adjusted capital (RAC) ratio to stay close to 5.5% over the next 12 months, balancing good internal capital generation with modest dividend payouts, while achieving fairly robust growth in risk-weighted assets.

 

Review Date	February 2015
Outlook	Stable
Long-term foreign currency IDR	B
Short-term foreign currency IDR	B
National Long-term rating	BBB+(nga)
National Short-term rating	F2 (nga)
Viability Rating	b-
Support Rating	4
Support Rating Floor	B

2014

Review Date:	September 2014
Ratings
Foreign Currency		National		Sovereign Risk		Outlooks
Long-Term IDR	B	Long-Term Rating	BBB+ (nga)	Foreign-Currency Long-Term IDR	BB-	Foreign-Currency Long-Term IDR	Stable
Short-Term IDR	B	Short-Term Rating	F2 (nga)	Local-Currency Long-Term IDR	BB	Sovereign Foreign-Currency Long-Term IDR	Stable
Viability Rating	b-					Sovereign Local-Currency Long-Term IDR	Stable
Support Rating	4
Support Rating Floor	B

 

Short Term	A2 (NG)
Long Term	A- (NG)
Outlook	Stable
Review Date	August 2014
* Please note that GCR are a Nigerian rating agency.

 

Short Term	B
Long Term	B
Outlook	Stable
Review Date	June 2014
Key Strengths	Strong liquidity indicators compared with international banks'.
	Relatively strong retail lending franchise.
	Improved earnings, but internal capital generation likely to lag risk asset growth.

2013

Short Term	A2 (NG)
Long Term	BBB+ (NG)
Outlook	Stable
Review Date	September 2013
* Please note that GCR are a Nigerian rating agency.

 

Short Term	A2
Long Term	A+
Outlook	Stable
Trend	Up
Review Date	June 2013
Key Strengths	Stable Management Very Good Asset Quality Good capitalisation
* Please note that Datapro Limited are a Nigerian rating agency.

 

Short Term	B
Long Term	B
Outlook	Stable
Review Date	June 2013
Key Strengths	Strong liquidity indicators compared with international banks. Improved earnings, but internal capital generation likely to lag risk asset growth. Relatively strong retail lending franchise.

2012

Short Term	A2
Long Term	BBB+
Outlook	Stable
Review Date	August 2012
* Please note that GCR are a Nigerian rating agency.

 

Short Term	A2
Long Term	A
Outlook	Stable
Trend	Even
Review Date	July 2012
Key Strengths	Stable Management
	Good Capitalization
* Please note that Datapro Limited are a Nigerian rating agency.

 

Short Term	B
Long Term	B
Outlook	Stable
Nigeria National Scale Rating	ngBBB+
Review Date	May 2012
Key Strengths	Improvement in market position, branch network and diversification within Nigeria due to the merger with FinBank with a moderate market share of around 5% on March 31, 2012.

2011

Short Term	B
Long Term	B+ (CreditWatch Negative)**
Outlook	Negative *
Nigeria National Scale Rating	ngA-2
Review Date	June 2011
Key Strengths	Robust capitalization, enhancing loss-absorption capacity
	Good investment and transaction banking niche franchise in Nigeria, supporting First City Monument Bank's wider corporate banking business
* In August 2009, S&P took various ratings actions on and downgraded/ changed the outlooks for various Nigerian banks. It changed the outlook on FCMB from Stable to Negative as a result of perceived reduced sovereign fiscal flexibility and instability in the Nigerian banking system. ** The CreditWatch placement followed the announcement that FCMB had signed a memorandum of understanding regarding a proposal to combine its business with local peer FinBank Plc (not rated). The potential transaction raises uncertainties regarding the future financial profile of FCMB and operational challenges after consolidation. FinBank is one of the 10 Nigerian banks which faced intervention by the Central Bank of Nigeria in August 2010. Transparency regarding the current financial and operational conditions of FinBank is limited and therefore the impact of the planned merger on the creditworthiness of FCMB is uncertain. The CreditWatch negative placement reflects the perceived uncertainties S&P see arising from the proposal to combine its business with FinBank on FCMB's financial profile and the operational risk related to the transaction. S&P expect to resolve the placement when shareholders, the regulator, and judiciary approve the transaction and it has enough information to assess the effect on FCMB's stand-alone credit profile (SACP). S&P will lower the ratings if, in its opinion, the proposed move raises FCMBs financial risk including lower capitalization, weak financial performance, and deteriorated asset quality. It could also lower the ratings if, in its view, integrating the business places a significant strain on the bank's operational capabilities. S&P could affirm the ratings if the transaction has no tangible impact on the bank's financial profile. In its opinion, combining the banks may have a longer-term positive effect on FCMB' creditworthiness because it could improve its business profile, diversify its funding, and give it a larger branch network. However, S&P will not raise the ratings on the bank above those on Nigeria because of the bank's geographic concentration and balance-sheet exposure to Nigerian government debt.

 

Short Term	A2
Long Term	A-
Outlook	Stable
Trend	Even
Review Date	April 2011
Key Strengths	Stable Management
	Good Capitalization
	Good Profitability
* Please note that Datapro Limited are a Nigerian rating agency.

2010

Short Term	B
Long Term	B+
Outlook	Negative *
Nigeria National Scale Rating	ngA-
Review Date	July 2010
Key Strengths	Robust capitalization, enhancing loss-absorption capacity
	Good investment and transaction banking niche franchise in Nigeria, supporting First City Monument Bank's wider corporate banking business
* In August 2009, S&P took various ratings actions on and downgraded/ changed the outlooks for various Nigerian banks. It changed the outlook on FCMB from Stable to Negative as a result of perceived reduced sovereign fiscal flexibility and instability in the Nigerian banking system.

2009

Short Term	B
Long Term	B+
Outlook	Negative *
Review Date	August 2009
Key Strengths	Sound levels of capitalization
	Moderate profitability despite high loan provisioning costs
	Investment Banking niche, supporting high-end corporate business
* In August 2009, S&P took various ratings actions on and downgraded/ changed the outlooks for various Nigerian banks. It changed the outlook on FCMB from Stable to Negative as a result of perceived reduced sovereign fiscal flexibility and instability in the Nigerian banking system.

 

Short Term	B
Long Term	B+
Outlook	Stable
Review Date	June 2009
Key Strengths	Sound levels of capitalization
	Moderate profitability despite high loan provisioning costs
	Investment Banking niche, supporting high-end corporate business

2008

Short Term	B
Long Term	B+
Outlook	Stable
Review Date	May 2008
Key Strengths	Robust Capital Levels
	Good Profitability
	Strong Investment Banking Niche
	Focused Strategy

2007

Short Term	A1
Long Term	A+
Outlook	Stable
Review Date	March 2007
Key Strengths	Increased Capitalization Levels Post-IPO
	Enhanced Competitive Position
	Widened Geographic Presence
	Highly Liquid Balance Sheet
	Improved RoAA