Globus Bank Boosts Capital Base by N26bn, Balance Sheet Grows to N1.4trn
Globus Bank’s existing shareholders have injected a total of N26.6 billion into the bank over the last two years through rights issuance, split into N10.6 billion in 2023 and N16 billion in 2024.
The national commercial bank has a balance sheet size of N1.4 trillion ($864.0 million) as of 31 July 2024, reflecting a three-year CAGR of 64.5% and a 48.7% growth over the position as at 31 December 2023.
Growth is primarily driven by wider branch networks and the adoption of digital innovations, which enhance customer reach.
Globus Bank has relatively stable operating revenues, supported by the dominance of net interest income that accounted for 74.6% (2022: 86.4%) in 2023 while the contribution of volatile, market-sensitive income remained lower than peers.
Furthermore, the bank’s three-year (2021-2023) average cost-to-income ratio of 48.1% continues to show a moderating trend reflecting improved operational efficiency.
Gross loans grew by 45.7% to NGN350.5 billion ($389.8 million) as at 31 December 2023 and further to NGN521.2 billion ($325.7 million) as of 31 July 2024. Despite this substantial growth, no non-performing loan was reported, reflecting prudent underwriting standards and stringent credit monitoring.
Globus Bank’s activities are funded by core customer deposits, which accounted for 98.3% (2022: 87.9%) of the total funding base as of 31 December 2023. Customer deposits rose by 76.6% to NGN546.8 billion ($614.8 million) as of 31 December 2023 and further to NGN751. 1 billion ($469.3 million) as of 31 July 2024, supported by the strategic deployment of technology and the expansion of its branch network.
“Looking ahead, we believe that Globus Bank’s ability to expand and defend its market share particularly in view of a mass recapitalisation of the Nigerian banking sector, while maintaining good revenues, would impact our assessment of the bank’s competitive position,” said GCR Ratings.
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