PremiumTrust Bank has recorded a significant improvement in its capital adequacy ratio (CAR), with the lender’s ratio rising to 40.8%, strengthening its financial buffer and positioning the bank to absorb potential risks while supporting future business growth.
The development was reported by BusinessDay on September 9, 2026, which said the bank’s capital position had strengthened considerably following an upgrade by credit-rating agencies Agusto & Co. and DataPro.
Capital adequacy ratio is an important measure of a bank’s financial strength because it indicates the extent to which a financial institution has sufficient capital to absorb losses relative to the risks associated with its assets.
PremiumTrust’s reported 40.8% ratio is significantly above the regulatory minimum, highlighting the bank’s stronger capital position and providing additional capacity to withstand financial pressures.
The improvement comes at a time when Nigeria’s banking sector is undergoing significant changes, including efforts to strengthen banks’ capital bases and improve their ability to finance economic activity.
For customers and investors, stronger capitalisation can provide greater confidence in a bank’s ability to meet its obligations and withstand unexpected financial shocks.
The development also reflects the broader transformation taking place across Nigeria’s financial sector as banks strengthen their balance sheets, improve risk management and position themselves for increased lending to businesses and other productive sectors of the economy.
PremiumTrust Bank’s improved capital adequacy therefore represents more than a balance-sheet milestone, as stronger financial buffers could support the institution’s expansion and its ability to participate in Nigeria’s evolving banking and investment landscape.
