Banking
Fitch Affirms Zenith Bank, UBA, GTBank, Access Bank Ratings
By Dipo Olowookere
Fitch Ratings has announced affirming the ratings on Zenith Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTBank) and Access Bank [ZUGA Banks], all with stable outlook.
In a statement issued by the agency, it was stated that the Long-Term Issuer Default Rating (IDR) on Zenith Bank and UBA were left at ‘B+’, while the Long-Term Issuer Default Rating (IDR) on Access Bank was affirmed at ‘B’, the Long-Term Foreign Currency Issuer Default Rating (IDR) on GTBank was affirmed at ‘B+’.
Fitch said the Viability Rating (VR) of Zenith Bank is among the highest it assigned to a Nigerian bank, reflecting the lender’s well-entrenched domestic franchise and market share.
“Zenith Bank is particularly strong in the prime corporate segment with a growing focus on retail banking. The bank’s franchise strength, management quality and clear strategy have allowed it to outperform peers through several cycles,” it said.
It further said the bank’s financial metrics are also strong compared with peers, pointing out that solid earnings generation and profitability (operating profit/risk-weighted assets of 7.1 percent in 1H19) reflect good margins, high levels of non-interest revenue and good cost control. Loan impairment charges have increased moderately and reflect some asset quality deterioration.
According to Fitch, Zenith Bank’s impaired loans/IFRS 9 Stage 3 ratio was 8.5 percent at end-1H19 (slightly up from 9.0 percent at end-2018) with loan loss allowance coverage at a comfortable 90 percent. Impaired loans rose in 2018 from consistently low levels due to a single large problem loan, highlighting the bank’s sensitivity to credit concentrations by obligor and industry.
It said the bank’s high capitalisation is a rating strength, with a regulatory total capital adequacy ratio of 23.4 percent at end-1H19, saying this is comfortably above the minimum 15 percent regulatory requirement (excluding its DSIB buffer).
For UBA, Fitch said its VR also reflects a strong franchise in Nigeria, as highlighted by market shares and a sizeable retail and current and savings accounts (CASA) deposit base, which translates into pricing power over smaller peers.
UBA’s overall franchise, Fitch said, is strengthened by a network of 19 subsidiaries across Sub-Saharan African (SSA) countries outside of Nigeria, which positions the bank to serve corporate customers operating across the continent and capitalise on trade flows. Operations across the rest of Africa (28% of assets at end-1H19; 41% of net income in 2018) provide a valuable source of diversification, particularly given the small contribution of each country.
It said execution on strategy has been particularly strong, as highlighted by exceptional retail deposit growth, increasing earnings contributions from the rest of Africa business and generally strong financial performance during challenging economic conditions.
However, it noted that loan quality remains weak as its impaired (Stage 3 under IFRS 9) loans ratio (5.6 percent at end-1H19) remains low relative to the sector average, but a large stock of Stage 2 loans (24 percent of gross loans at end-1H19) that are concentrated by single-borrower and derive from troubled sectors such as power and oil and gas, present a risk to UBA’s financial profile.
On the part of GTBank, Fitch said the IDRs and National Ratings are driven by the bank’s intrinsic creditworthiness, as defined by its VR, the highest assigned to a Nigerian bank. It said the VR also considers the bank’s strong financial metrics and high performance ratios, comfortable capital buffers and highly concentrated loan book.
It said the lender’s strong earnings support capitalisation and capital adequacy is a rating strength.
“GTB’s Fitch Core Capital/risk weighted assets ratio reached a high 26.7% at end-June 2019 and the bank’s internal target is to maintain regulatory capital ratios in excess of 17%, comfortably above the 15% prudential minimum required.
“Asset quality ratios compare well with peers and efforts to recover impaired loans are proving successful. The impaired loans/total loans ratio is on a declining trend, improving to 6.8% at end-June 2019. Loan loss reserve coverage reached 80%, which appears adequate considering available collateral. GTB’s IFRS 9 Stage 2 loans were equivalent to approximately 11% of loans at end-June 2019, which is broadly in line with close peers,” it said.
Fitch further said GTBank’s balance sheet is liquid. Loan deleveraging continued in 1H19, while deposit inflows are still positive (up 6%). Excess liquidity continues to be invested into Nigerian government securities. Regulatory pressure to encourage banks to lend to the real economy may result in positive loan growth during 2H19. Liquidity management is sound in both foreign and local currency.
For Access Bank, the rating agency said the acquisition of Diamond Bank in the first quarter of 2019 increased the lender’s consolidated assets by around 30 percent, creating Nigeria’s largest bank, with a 23 percent share of deposits (previously 11 percent).
“Following the acquisition, Access Bank’s traditional corporate business model is more balanced across retail and SME segments. Management’s objectives are to pursue a retail-focused, digitally-driven, growth strategy and position the bank as a regional leader in Africa.
“If achieved, this will boost Access Bank’s profile, but factors such as franchise, business model and strategic objectives currently have only a moderate influence on the bank’s ratings,” it said.
It added that, Diamond Bank’s asset quality was weak but management is successfully executing on a plan to write off impaired loans and focus on recoveries. The impaired (Stage 3) loans/gross loans ratio, which had exceeded 10% immediately following Diamond’s acquisition, fell back to 6.8% at end-June 2019.
This is broadly in line with ratios displayed by the most highly rated Nigerian banks (around 7%) but Access Bank’s share of Stage 2 loans as a proportion of gross loans is still fairly high at around 20%. Total loan loss coverage of Stage 3 loans is high at 112% (49% immediately post-acquisition), but specific coverage of Stage 2 loans is still low.
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.
