Banking
FBN Holdings Gets Buy Rating Amid Asset Quality Issues
By Dipo Olowookere
A Buy rating has been assigned to FBN Holdings by analysts at United Capital Research.
The rating is coming on the back of the recently released financial statements of FBN Holdings for 2018.
In the results, the gross earnings declined by 2.0 percent to N585.9 billion as a result of a 7.5 percent decrease in interest income to N434.4 billion amid weaker loan growth and earnings yield.
However, the PBT and PAT jumped 19.7 percent and 31.4 percent to N65.3 billion and N59.7 billion respectively, proposing a final dividend of 30 kobo, which translates to a 3.5 percent dividend yield.
According to United Capital Research, FBN Holdings’ gross earning underperformed estimates for the period amid sustained reluctance to expand its loan book which shrank 7.2 percent to N2.5 trillion over the period.
It said clearly, the bank continues to favour the deployment of funds to investment securities which jumped 33.3 percent y/y to 1.7 trillion and was unable to rescue interest income as moderation in yields environment and poor loan growth dragged earnings yield.
The lender however, reported marked improvement in non-interest income which surged 18.2 percent y/y to N151.2 billion, thanks to fee & commission income which jumped 24.5 percent y/y to N92.7 billion.
Notably, loan loss expense fell 42.2 percent to N86.9 billion, driven by net recoveries on loans previously written off.
“However, we will be waiting on management to provide some guidance on the position of the Atlantic energy loan during their conference call towards the end of the month.
“Overall, improvement in loan loss expense buoyed bottom line numbers as PBT and PAT rose 19.7 percent and 31.4 percent y./y to N65.3 billion and N59.7 billion respectively,” the firm said in its report.
It was further stated that ROE, ROA and Net margin all improved to 9.9 percent, 1.1 percent and 10.2 percent respectively, however, CIR worsened to 63.4 percent from 54.0 percent despite the effort to streamline OPEX by the management.
Also, Net interest income margin weakened to 7.5 percent from 8.4 percent as Interest expense rose 8.8 percent while Cost of Funds stayed flat at 3.4 percent, thanks to an 11.4 percent jumped in deposits.
It was emphasised that FBN Holdings’ asset quality remains a big challenge with NPL ratio at 25.9 percent from 22.8 percent in 2017.
Additionally, liquidity, capital ratios appear to be under pressure as liquidity ratio reduced to 45.2 percent versus 49.3 percent of the previous year and CAR (FBN Ltd) inched lower to 17.3 percent from 17.7 percent.
United Capital Research noted that outlook for FBN Holdings’ performance going forward is hinged on a resolve to expand its loan book and sweat its N5.6 trillion balance sheet. It said the yield on government securities is not expected to rise above current levels.
“Accordingly, we imagine that FBN Holdings will review its recent stance on loan growth. Also, management has to deal with the issue of OPEX, Asset Quality and Pressure on Capital.
“Given the foregoing, we maintain a cautious outlook on the performance of FBN Holdings. Nevertheless, the current price of N7.50k per share translates to a PB ratio of 0.5x compared to peer average 0.9x, as such, we retain our BUY rating on FBN Holdings,” the report said.
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.
