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 Central Bank of Nigeria (CBN) has unveiled the fourth edition of its Foreign Exchange Manual as part of efforts to deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
Speaking at the launch of the revised manual in Abuja on Friday, the Governor of the apex bank, Mr Yemi Cardoso, said the document will take effect from June 1, 2026.
He said it was developed after extensive consultations with banks, exporters, importers, corporates, regulators and development partners.
He said the new framework reflects the apex bank’s commitment to modernising the country’s foreign exchange administration in line with international best practices.
Mr Cardoso described the foreign exchange market as a critical pillar of any open economy, noting that effective governance of the sector is essential for sustaining macroeconomic stability and investor confidence.
“Foreign exchange is more than a financial instrument. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” he said.
The CBN governor stressed that the revised manual became necessary due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework.
According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Mr Cardoso disclosed that Nigeria’s foreign exchange market has witnessed significant improvement in liquidity since the current administration began reforms in the sector.
He added that daily turnover in the FX market increased from an average of about $100 million in the early days of the administration to between $400 million and $600 million daily.
The CBN Governor added that the market had also recorded transactions of up to $1 billion per day on several occasions in recent months.
“We have gone from a situation where it was more or less a one-way market, where the central bank came in, intervened and went away, to a much more dynamic market,” he stated.
The apex bank boss noted that the reforms were gradually restoring confidence among investors and market participants, encouraging freer entry and exit in the market without unnecessary restrictions.
He also maintained that the nation’s foreign reserves should not be used as the primary tool for funding the foreign exchange market.
“Reserves are reserves. They are not what you look to fund a market,” he said.
The CBN Governor assured stakeholders that the revised manual would be distributed free of charge to authorised dealers while the bank strengthens monitoring mechanisms to ensure compliance, fairness and accountability across the foreign exchange market.
On his part, the Deputy Governor for Economic Policy, Mr Muhammad Abdullahi, said the review formed part of broader reforms initiated by Mr Cardoso to restore confidence, improve transparency and deepen liquidity in the foreign exchange market.
Mr Abdullahi explained that the revised manual introduces several changes aimed at improving ease of doing business and reducing transaction bottlenecks.
Among the notable changes, he noted, are provisions allowing unfettered access to export proceeds, the introduction of non-resident investment accounts and operational guidelines for Pan-African Payment and Settlement System (PAPSS) transactions to support regional trade.
Mr Abdullahi added that the manual also contains new provisions on service exports, revised documentation requirements and updated operational procedures designed to align Nigeria’s FX market with global standards.
He said the apex bank deliberately adopted an ease of doing business approach during the review process to eliminate inefficiencies and ambiguities identified by stakeholders.
“The revised manual is not a stand-alone exercise but part of a broader institutional reform effort designed to strengthen the integrity, credibility and effectiveness of Nigeria’s foreign exchange system,” he said.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has approved the appointment of Mr Julius Omodayo-Owotuga to the board of First Bank of Nigeria Limited as an executive director.
A statement from the company said the appointment of Mr Omodayo-Owotuga became effective on Wednesday, May 13, 2026.
He was appointed to the board of the subsidiary of First Holdco Plc to further strengthen its leadership capacity across strategic finance, governance, risk management, and institutional transformation.
Before now, he served on the board of First Holdco as a non-executive director between 2021 and 2026.
The appointee brings to the board 24 years of experience spanning banking and financial services, infrastructure finance, power, oil & gas, and audit and consulting.
His appointment, according to the notice to the Nigerian Exchange (NGX) Limited, reflects the Bank’s continued commitment to strong governance, disciplined execution, financial resilience, and sustainable long-term growth.
He most recently served as deputy chief executive of Geregu Power Plc, Nigeria’s first listed power generation company, where he played a pivotal role in institutional transformation, governance strengthening, capital market positioning, operational optimisation, and major financing initiatives, including the company’s landmark listing on NGX.
Mr Omodayo-Owotuga previously served as group executive director, Finance & Risk Management at Forte Oil Plc (now Ardova Plc), where he was instrumental in the company’s financial and operational transformation, leading strategic restructuring, capital raising, treasury optimisation, enterprise risk management, and governance improvement initiatives that strengthened long-term shareholder value.
His professional career also includes roles at Africa Finance Corporation, Standard Chartered Bank, KPMG Professional Services and MBC International Bank (Now First Bank Nigeria Limited), providing him with deep experience in institutional finance, treasury management, financial controls, regulatory engagement, and corporate advisory.
Mr Omodayo-Owotuga is a CFA Charter Holder, KPMG-trained Accountant, and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN), and the Institute of Credit Administration. He is also a member of the Institute of Directors (IoD) Nigeria and a Certified Management Accountant.
He holds a Doctorate in Business Administration, a Master’s in Business Administration and a Bachelor’s degree in Accounting. He is an alumnus of Saïd Business School, University of Oxford, IE Business School, Geneva Business School, and the University of Lagos.
By Modupe Gbadeyanka
In recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises (SMEs), Union Bank of Nigeria Plc has been honoured by the Association of Small Business Owners of Nigeria (ASBON).
The lender was rewarded by the group for its suite of solutions designed to enable business expansion and long-term value creation.
At the Nigeria National SME Business Awards, held recently in Lagos, Union Bank was given the Best SME Growth Banking Initiatives Award for 2025.
The ceremony was organised by ASBON in partnership with the Lagos State government through the Ministry of Commerce, Cooperatives, Trade and Investment.
The event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.
Receiving the award on behalf of the bank, its Head of SME Segment, Mr Ayokunnumi Abraham, described the recognition as a strong endorsement of the organisation’s commitment to supporting small and medium-sized businesses.
“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible.
“Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting.
“These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive,” he stated.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn