Banking
Fitch Affirms ‘B’ Rating on Access Bank
By Dipo Olowookere
The Long-Term Issuer Default Rating (IDR) assigned to Access Bank by Fitch Ratings has been affirmed with a Stable Outlook. Also, the Viability Rating (VR) is affirmed at ‘b’.
A statement issued by the rating agency disclosed that the IDRs of Access Bank are driven by its intrinsic creditworthiness as defined by its VR. Like all Nigerian banks, Access Bank’s VR is constrained by the operating environment in Nigeria (B+/Stable).
The fragile economic recovery restrains banks’ growth prospects and asset quality, with the VR reflecting the lender’s position as one of the country’s largest banks with an overall domestic market share of approximately 11 percent, as well as the bank’s sound financial metrics and reasonable capital buffers, which are at the upper end of rated Nigerian banks. Fitch noted that the VR also factors in the bank’s highly concentrated loan book.
Access Bank has subsidiaries in a further six African countries and in the UK and these represent 25 percent of consolidated assets and generated 30% of group pre-tax profit in 1H18.
Operating conditions in Nigeria are recovering given improving oil prices, which support a modest return to economic growth, and US dollar liquidity in the banking system has eased. However, the operating environment for banks is difficult with minimal sector loan growth and pressure on margins and capital.
Access Bank has fairly robust risk controls and systems and its impaired loans/gross loans ratio (5% at end-June 2018) is sound by Nigerian standards and broadly in line with the 5.7% average for its closest Nigerian peers.
Loan loss cover reached slightly above 100% following implementation of IFRS 9 in January 2018. Restructured loans are lower than at other Nigerian banks at approximately 5% of gross loans but Stage 2 loans classified in line with IFRS 9 are, at around 13% of gross loans, broadly in line with peers’.
The top 20 loans at end-June 2018 represented around 40% of total loans, high by international standards but in line with Nigerian peers’. Exposure to the oil sector, 25% of loans at end-June 2018, is lower than the 30% sector average.
According to Fitch, Access Bank’s VR also reflects adequate profitability although this is weaker than at most other immediate peers. Relative earnings weakness reflects a higher cost structure and a modest retail franchise, resulting in higher cost of funding than peers’. Efforts to attract new retail depositors, particularly through digital channels, continue.
It said liquidity ratios are sound, with cash holdings and government securities representing around 40% of total assets. Foreign currency refinancing risks have eased with the bank issuing a five-year $300 million 10.5% Eurobond in October 2016 (issued by Access Finance BV), which partly refinanced a $350 million 7.25% Eurobond bond maturing in July 2017.
Fitch noted that core capital ratios are lower than those reported by immediate peers, although its assessment is that buffers are adequate.
Access Bank absorbed N78.4 billion ($257 million), equivalent to approximately 15% of consolidated end-2017 equity, of additional expected credit loss provisions required in line with IFRS 9. Following this, its Fitch Core Capital (FCC)/risk-weighted assets (RWAs) ratio stood at 18% at end-June 2018 (peers: 22%).
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.
By Modupe Gbadeyanka
The flagship banking subsidiary of Guaranty Trust Holding Company (GTCO) Plc, Guaranty Trust Bank (GTBank) Limited, has been announced as the winner of Nigeria’s Best Digital Bank award at the Euromoney Awards for Excellence 2026.
The lender clinched this accolade at the Euromoney Awards for Excellence 2026 ceremony, held on July 17, 2026, at The Peninsula London, England, for its outstanding performance, innovation, customer service, and leadership.
GTBank’s recognition as Nigeria’s Best Digital Bank reflects its continued leadership in digital innovation and its commitment to delivering seamless, secure, and customer-centric financial solutions.
As the banking franchise of GTCO, GTBank has consistently set industry benchmarks in digital transformation, pioneering solutions that have redefined how individuals and businesses access, manage, and experience financial services.
Over the years, GTBank has transformed the banking experience through a suite of innovative digital platforms, including the GTWORLD mobile app and solutions that provide millions of customers with seamless, secure, and convenient access to financial services.
The bank continues to strengthen its digital capabilities by introducing products and services that meet evolving customer needs while maintaining the highest standards of security, reliability, and service excellence.
This latest recognition underscores the company’s position as a market leader and reflects its sustained investment in technology, operational excellence, and innovation.
“This recognition is a testament to the legacy upon which GTBank was built and the vision that continues to guide us today.
“From inception, our goal has been to deliver on the Group’s vision to make end-to-end financial services accessible to everyone by leveraging technology to remove barriers, simplify experiences, and create meaningful value for our customers,” the chief executive of GTBank, Mrs Miriam Olusanya, stated.
“While we are honoured by this recognition, we see it as an acknowledgement of what we have achieved and a motivation to do even more.
“We remain focused on raising the bar for digital banking, investing in innovative solutions, and delivering exceptional experiences that create lasting value for our customers.
“As the financial services landscape continues to evolve, we will continue to innovate, adapt, and lead with the same commitment to excellence that has defined our franchise for decades,” she added.
The Euromoney Awards for Excellence 2026 convened leading financial institutions, industry executives, and policymakers from across the globe to celebrate excellence, innovation, and leadership in the financial services sector.
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.
