Banking
Digital Transactions Jerk Union Bank’s H1’20 Earnings by 8%
By Dipo Olowookere
Despite the threats faced by Union Bank Plc in the first half of 2020 as a result of the global health crisis caused by COVID-19, it delivered a near double-digit growth in its gross earnings.
In the financial statements of the company for the period ended June 30, 2020, released today, the lender increased its earnings by 7.8 per cent to N81.9 billion from N76.0 billion in the same period of 2019.
This growth was influenced by an increase in earning assets as well as the use of Union Bank’s digital channels by customers during the lockdown in Nigeria.
On March 30, 2020, the federal government put Lagos, Abuja and Ogun State on total lockdown till early May, while some other states were put on partial lockdown.
During this period, banks and other businesses were not allowed to operate because the government was making efforts to control the spread of the virus, which has now infected over 5 million people worldwide.
But despite the lockdown, Union Bank’s half-year earnings grew because customers relied on its digital platforms to carry out their transactions, though earnings in Q2 slightly dropped to N38.0 billion from N38.3 billion in Q2 2019.
According to the lender, 90 per cent of transactions by its customers were completed digitally in the first half of the year compared with 57 per cent in the comparative period of 2019, translating to a 42 per cent growth in e-business fees from N2.5 billion in H1 2019 to N3.6 billion in H1 2020.
In the first six months of this year, Union Bank recorded a 6.3 per cent rise in interest income (N57.4 billion versus N54.0 billion in H1 2019) and this was also driven by the increase in earning assets.
In addition, the net interest income before impairment went up by 20.4 per cent to N28.3 billion from N23.5 billion due to the reduction in interest expense (N29.1 billion in H1’20 versus N30.5 billion in H1’19, while a robust growth in e-business and revaluation gains drove the non-interest income higher by 24.0 per cent to N22.7 billion from N18.3 billion in H1 2019.
It was observed that the net operating income increased marginally by 0.86 per cent to N46.7 billion from N46.3 billion, while the operating expenses slightly went down to N35.5 billion from N35.6 billion as a result of the lockdown in the second quarter of the year as most employees of the company worked from home.
Business Post observed that the bottom line of the results was not too impressive as the profit before tax grew by 2.7 per cent to N11.5 billion from N11.2 billion in H1 2019, while the profit after tax depreciated by 9.2 per cent to N10.8 billion from N11.9 billion.
Due to the increased demand for its innovative offerings and the continued benefits of its brand growth, Union Bank recorded a 12.3 per cent year-to-date rise in customer deposits to N995.0 billion from N886.3 billion in FY 2019.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
