Banking
Access Bank Gets Hold Rating With Cautious Outlook
By Dipo Olowookere
Analysts at United Capital Research have advised investors having shares of Access Bank Plc in their holdings to hold them for now.
This is because they feel the lender remains modest going by the figures in recently released financial statements for the first quarter of 2019, which are yet to capture the full impact of its merger with Diamond Bank Plc.
The analysts noted that things are expected to be very clear when Access Bank finally releases its results for the first half on this year in July.
They said for instance, the annualized ROE of 30.9 percent posted in the Q1 2019 earnings “is clearly unsustainable given that OPEX is yet to account for the merger and interest income for financial asset (FVOCI) which may or may not be reversed, depending on the nature of the asset.”
As a result, a cautious outlook on Access Bank’s profit before tax and profit after tax for 2019 has been maintained.
“While we maintain that CAR and NPL ratios may be bullish due to a possible understatement of Risk-Weighted Asset (RWA) pending audit, the management has stated that maturing Eurobond for Diamond Bank in May will be fully paid-down,” United Capital Research said in its report.
In its analysis, it was stated that Access Bank reported a 16.4 percent y/y increase in Gross Earnings (GE) to N160.1 billion in Q1- 19, majorly driven by Interest Income which grew by 15.9 percent y/y to N110.8bn.
It pointed out that the jump was surprising considering the not so impressive numbers submitted by peers for the same period.
“Two further reasons buttress our concern. Firstly, interest income was driven by a surge in interest income from financial assets (at FVOCI) which increased to N25.5bn from N4.6bn in the prior year. Depending on the type of financial assets (not stated), incomes reported at FVOCI are subject to vagaries of the economic cycle, and can consequently print lower in the subsequent quarter.
“Secondly, the Q1-19 result is unaudited, and thus, should be taken with a pinch of salt.
“Again, Net Interest Margin (NIM) eased 2bps to 5.6 percent while Cost of Funds (COF) decreased 140bps to 4.4%. Also, impairment charges fell 32.0 percent y/y and OPEX was stable at N55.1bn. As such, Cost to income Ratio moderated to 53.2 percent (vs. 62.0 percent in Q1-18).
“However, all these metrics did not factor in the Diamond Bank merger. Accordingly, PBT and PAT jumped 64.4 percent and 86.1 percent to N45.1bn and N41.1bn respectively, while annualized ROE and ROA came in at 30.9 percent and 2.9 percent.”
The biggest, with a N6.4tn Total Assets: In contrast to the Income Statement, the Balance Sheet showed a consolidated position of the merged entity, accordingly, Access Bank’s total assets now stands at N6.4tn, making the Bank indeed the largest in the country. Thus, Loans & Advances (N2.7tn), Deposits (N3.9tn) and Net Assets (N0.6tn) all increased by double-digit.
Notably, consolidated Non-Performing Loans (NPLs) settled at 10.0 percent (from 2.5 percent in FY-18), but Cost of Risk (COR) eased to 0.5 percent (from 1.5 percent in FY-18).
Also, Capital Adequacy Ratio (CAR) reduced from 20.1 percent in FY-2018 to 19.1 percent.
“We think these ratios are slightly bloated given that some (such as COR and COF) of them are pegged against P&L item which does not account for Diamond Bank’s operations during the period. “Meanwhile, others (such as CAR & NPL) may have been understated given that this result is not audited,” it stated.
By Modupe Gbadeyanka
About N2 billion is expected to be used to finance renewable energy products for customers by the end of 2026 in an effort to accelerate Nigeria’s clean energy transition.
To meet this goal, Sterling Bank is launching Sterling Solar Financing Hubs inside StarTimes retail outlets to embed on-the-spot solar financing at the point of purchase.
From the N2 billion earmarked for this initiative, N600 million has already been used up.
Under this programme, customers can now walk into participating outlets, select their preferred solar solution, receive financial guidance from dedicated Sterling Solar Financing Advisors, and begin the financing process immediately, subject to the bank’s credit assessment.
The first phase of the rollout commenced this July with five Solar Financing Hubs across Lagos, located in Lekki, Ikeja, Festac, Surulere, and Victoria Island.
The network will expand rapidly to 46 StarTimes outlets nationwide before the end of the third quarter of 2026, with a view to extending the model to more than 200 StarTimes locations nationwide.
Both parties have promised to continue working together to democratise access to clean energy financing, empowering more Nigerians to solarise their homes and businesses while contributing to a greener future.
“Sterling exists to enrich lives, and we believe that access to clean, reliable energy should be within everyone’s reach. Through this partnership with StarTimes, we are democratising access to solar by bringing financing directly to the point of need, enabling more families and businesses to transition to sustainable energy without the burden of prohibitive upfront costs. This is about unlocking opportunity, improving livelihoods, and powering Nigeria’s future,” the Divisional Head of Renewable Energy and Mobility at Sterling Bank, Mr Darlington Nwankwo, said.
Also commenting, the Vice President of StarTimes Nigeria, Mr Eric Xiao, said, “With the rollout of the Sterling Solar Financing Hubs, we are doing more than just selling solar products; we are building a sustainable energy ecosystem. By integrating StarTimes’ extensive service network with Sterling Bank’s professional financial services, we are significantly lowering the barrier for Nigerian households and small businesses to access clean energy.
“Moving forward, we will continue to deepen this partnership, ensuring that more Nigerians can enjoy reliable, affordable, and smart energy solutions, ultimately turning our vision of energy accessibility into a reality for all.”
By Modupe Gbadeyanka
The Nigeria Business Summit Regional Tour of Stanbic IBTC Bank made a detour to Jogor Centre, Ibadan, Oyo State, on Wednesday, July 15, 2026, to empower Micro, Small, and Medium Enterprises (MSMEs).
The event brought together business leaders, development partners and government representatives to discuss pathways for sustainable enterprise development across the South-West.
Participants engaged in practical masterclasses on export opportunities; access to finance and business growth strategies; gaining actionable insights into market expansion; trade documentation; credit readiness; financial record-keeping; and structured financing solutions designed to support long-term business success.
The Head of Enterprise Banking at Stanbic IBTC Bank, Ms Olajumoke Bello, informed participants that the programme is part of the lender’s commitments to supporting MSMEs through practical business education, strategic partnerships and improved access to growth opportunities.
The Executive Director of Business and Commercial Banking at Stanbic IBTC Bank, Mr Remy Osuagwu, on his part, said, “Our ambition is to be more than a financial institution to Nigerian businesses. We want to be a trusted growth partner, providing the financing, business insights and advisory support entrepreneurs need to build sustainable enterprises and unlock new opportunities.”
Similarly, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who reinforced the company’s commitment to enterprise development, highlighted the importance of providing businesses with the right support structures to enable sustainable growth and long-term competitiveness.
“At Stanbic IBTC, we believe that sustainable economic growth depends on the success of small and growing businesses. That is why we are focused on providing access to finance, practical advisory support and the connections businesses need to move from ambition to scale,” he stated.
The Oyo State Commissioner for Investment, Trade, Cooperatives, and Industry, Professor Soliu Adelabu, said the initiative was designed to support businesses and strengthen the state’s entrepreneurship ecosystem, praising the bank for its support for traders, entrepreneurs, and artisans in the state.
The Permanent Secretary in the Oyo State Ministry of Women Affairs and Social Inclusion, Mrs O.M. Shotonwa-Roagess, highlighted the importance of strategic partnerships in expanding economic opportunities for women and vulnerable groups across Oyo State. She noted that the ministry remains open to collaborating with organisations such as Stanbic IBTC, development partners and the private sector to drive financial inclusion, entrepreneurship and sustainable economic empowerment.
The Nigeria Business Summit Regional Tour forms part of Stanbic IBTC’s broader commitment to empowering entrepreneurs through capacity building, financial inclusion and strategic business support, helping enterprises unlock new opportunities for growth and long-term success.
The Ibadan leg built on the momentum of previous tour stops in Katsina and Aba.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria anticipates remittances from citizens living abroad to increase by two-thirds in 2026 as it seeks to bolster its foreign-exchange reserves to $1 billion monthly.
“We are expecting that by the end of the year, we will hit about a billion Dollars a month from diaspora remittances,” he said at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, themed From Stability to Shared Prosperity.
Mr Cardoso said remittances are expected to be boosted from more than $600 million currently, banking on the CBN’s deliberate target at remittances to diversify reserve sources beyond oil earnings.
According to him, the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He said the lender subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Mr Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped double diaspora inflows within one year and exceeded initial expectations, also projecting annual remittances could reach about $8 billion if the current momentum was sustained, adding that the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Mr Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors’ confidence.
He identified exchange rate unification as one of the central bank’s major achievements under the reforms programme.
According to him, replacing multiple exchange rate windows with a market-driven system eliminated distortions and improved transparency.
Mr Cardoso said improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently, noting that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
According to him, the reserves are designed to shield the economy from external shocks and excessive market volatility.
He said the reserves were not meant for routine interventions or day-to-day exchange rate management.
