Banking
CBN Action Won’t Affect FBN Holdings Asset Quality, Profitability—Fitch
By Dipo Olowookere
Fitch Ratings has disclosed that the removal of the non-executive board members of FBN Holdings Plc and First Bank of Nigeria Limited by the Central Bank of Nigeria (CBN) last month will not have an effect on the group’s asset quality, profitability and capitalisation.
The rating agency made this disclosure in a statement issued last Friday. It, however, noted that the company’s outlook remains negative, reflecting its pre-existing asset quality and capitalisation weaknesses as well as its corporate governance weaknesses highlighted by the CBN.
In the statement, Fitch emphasised that these weaknesses highlighted above could put pressure on the ratings of the financial institution.
Last week, Fitch affirmed the Long-Term Issuer Default Ratings (IDRs) of FBN Holdings Plc and its primary operating subsidiary, First Bank, at ‘B-‘ with a negative outlook.
According to the statement, the “affirmation reflects our view that the impact of the CBN replacement of FBNH and FBN’s boards, the identification of corporate governance failings and the imposition of corrective measures are tolerable at the rating level.”
The agency said it assessed the near-term financial impact of these actions on FBN Holdings and FBN and believe this is tolerable at the rating level, even though the final outcome is uncertain.
“In our view, any remedial actions imposed by the CBN, including a potential reclassification of related-party exposures as impaired, will not have a material effect on the group’s asset quality, profitability and capitalisation,” it stressed.
But Fitch pointed out that “this does not consider any possible additional actions by the CBN, especially if FBN fails to implement the regulator’s corrective measures or if there were any further uncovering of corporate governance irregularities.”
The rating firm said its analysis of FBN Holdings’ profitability metrics typically lag behind those of the other large banks, mainly due to high loan impairment charges.
“In our view, the corrective measures, including higher provisioning on related-party loans or the sale of non-permissible equity investments, would not materially affect profitability in the near term,” it said.
As for its capitalisation, Fitch said it remains weak with a high influence on the ratings. FBN reported a capital adequacy ratio of 16.6 per cent in the first quarter of 2021, excluding interim profits, which provides limited headroom above its 15 per cent minimum regulatory requirement.
In addition, the capitalisation metrics of the group remain vulnerable to asset-quality risks given significant capital encumbrance by unreserved impaired loans, the rating agency said.
It pointed out that the asset quality remains a rating weakness as it reported an improved impaired loan ratio of 7.9 per cent in Q1 2021 versus 7.7 per cent in FY 2020.
However, FBN Holdings reported reserve coverage of 54.5 per cent at Q1 2021 versus 48 per cent at FY 2020, which remains significantly weaker than domestic peers’.
“Our assessment indicates that if the related-party loan highlighted by the CBN were classified as impaired, the ratio would be unlikely to be above 10 per cent (excluding any new impaired loan generation from ordinary business),” it noted.
“Our conversations with FBN Holdings give us to understand there has been no adverse effect from recent events on its funding and liquidity profile, which remains healthy.
“FBN Holdings’ funding profile continues to benefit from a substantial customer deposit base, which provides around 75 per cent of its non-equity funding,” Fitch said.
Recall that on April 29, 2021, the CBN sacked the boards of FBN Holdings and First Bank in the interest of financial stability and minority shareholders.
According to the apex bank, the action was because First Bank replaced its CEO without prior notice or approval of the regulator, which the CBN said could send the wrong signal to observers.
By Dipo Olowookere
Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.
The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.
The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.
Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.
It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.
“Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.
“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.
“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.
“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.
The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.
Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.
By Dipo Olowookere
Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.
In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.
It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.
All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.
Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.
They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.
“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.
“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.
“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.
Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”
By Dipo Olowookere
Customers may have difficulty accessing the digital platform of Polaris Bank, known as VULTe, during the Easter holidays from Friday, April 3, to Monday, April 6, 2026.
This is because the financial institution is carrying out system maintenance on the platform in its effort to ensure users enjoy a better banking experience.
In a notice over the weekend, the lender said “access to VULTe may be limited,” but it provided an alternative, which is the PolarisXperience.
Polaris Bank, which expressed regret over “any inconvenience” this action may cause its customers, said the “scheduled system maintenance” would happen from 10 pm to 8 am daily, promising that normal service would return after the maintenance.
“In continuation of our commitment to delivering a seamless and improved banking experience, we will be conducting a scheduled system maintenance during the Easter holidays.
“During this period, access to VULTe may be limited. We have provided an alternative channel, PolarisXperience:
“Please go to our website to onboard or use it as an existing user. You can also use this link: (https://elogin.polarisbanklimited.com).
“We regret any inconvenience and appreciate your understanding. Normal service will resume after the maintenance,” parts of the notice seen by Business Post read.
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