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GCR Affirms AA-(NG) Rating on UBA With Stable Outlook

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Kennedy Uzoka UBA Shareholders

By Modupe Gbadeyanka

The national scale ratings of AA-(NG) and A1+(NG) in the long and short term respectively assigned to United Bank for Africa (UBA) have been affirmed by Global Credit Ratings (GCR).

The Nigeria-based rating agency, in a statement, disclosed that it also affirmed the long term international scale rating of B+ assigned to the lender with the outlook accorded as stable.

However, GCR stressed that downward ratings movement may emanate from a significant deterioration in asset quality, liquidity, capital and profitability metrics, noting that the international scale rating will be sensitive to changes in the sovereign rating of Nigeria.

In the statement, GCR explained that UBA’s ratings reflect its established franchise, significant domestic market share (being one of the top-tier banks in Nigeria) and status as a systemically important bank.

It added that further rating support was derived from the bank’s risk appropriate capitalisation, comfortable liquidity, as well as geographic and earnings diversification, with operations in 20 African countries and offices in three global financial centres (London, Paris and New York).

UBA’s capitalisation is considered satisfactory for the current risk level, with a risk weighted capital adequacy ratio of 20 percent and 18.4 percent at FY17 and 3Q FY18 respectively, above the regulatory minimum of 15 percent.

Supported by strong internal capital generation, shareholders’ funds grew consistently over the years and stood at N529.4 billion at FY17, representing a compounded annual growth rate of 22.5 percent over a five-year review period.

The gross non-performing loans (NPL) almost doubled (rising by 89.8 percent) to N114.8 billion at FY17, largely impacted by the downgrade of a single large exposure, underpinning the gross NPL ratio rise to 6.7 percent at FY17, from 3.9 percent at FY16.

According to management, remedial action on the loan has commenced and recovery prospects are considered high. Specific provision coverage of impaired loans stood at 22.0 percent at FY17 (FY16: 36.0 percent).

Consequently, capital value at risk (NPLs net of provisions to capital) was a higher 9.7 percent at FY17 (FY16: 1.9 percent). At 3Q FY18, the NPL ratio stood at 7.2 percent.

“Although the contractual and behavioural mismatch of assets and liabilities in FY17 reflected a liquidity gap of N1,631.7 billion and N712.7 billion respectively within the critical ‘less than one-month’ maturity bucket (equivalent to 3.1x and 1.3x of shareholders’ funds respectively), liquidity risk is mitigated through maintaining a sizeable portion of liquid assets.

“The bank’s liquidity profile is further supported by $500 million Eurobond facility raised during the year, as well as available credit lines from other financial institutions.

“UBA’s statutory liquidity ratio ranged between 33.8 percent and 55.5 percent in FY17, against the regulatory minimum of 30 percent,” the rating agency said.

In 2017 financial year, UBA reported a pre-tax profit of N105.3 billion, representing a 16.1 percent year-on-year growth. While net interest income was largely supported by improved investment yields and funding costs, non-interest income was driven by increase in transaction related income and foreign exchange gains.

Operating expenses rose by 23.7 percent on the back of increase in staff costs, IT and other administrative expenses, resulting in a cost to income ratio of 57.8 percent at FY17 (FY16: 56.3 percent).

Overall, the return on average equity and assets stood at 16.6 percent (FY16: 19.0 percent) and 2.1 percent (FY16: 2.3 percent) respectively in FY17.

In 3Q FY18, the bank delivered a pre-tax profit of N79.1 billion, comparing favourably with the corresponding period in FY17 and in line with budget on annualised basis.

Substantially improved asset quality, positive earnings profitability, and capitalisation metrics, as well as further enhancement of geographic and earnings diversification benefits, would be positively considered.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Banking

Stanbic IBTC Reinforces Role in Driving Businesses, Key Sectors in Nigeria

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stanbic ibtc support businesses

By Adedapo Adesanya

Top financial services provider in Nigeria, Stanbic IBTC, has reiterated its commitment to empowering businesses, strengthening key sectors and positioning Nigeria as a competitive player in the global economy.

This came on the back of the 2026 edition of the Nigeria Business Summit from Wednesday, April 1 to Thursday, April 2, 2026, at the Landmark Event Centre, Victoria Island, Lagos. The two-day summit brought together industry leaders, policymakers, entrepreneurs and stakeholders across multiple sectors to explore sustainable business practices, foster economic growth and unlock global trade opportunities.

With the theme, Nigeria Means Business: Powering Sectors, Growing Sustainable SMEs & Unlocking Global Trade, the summit addressed critical issues across key sectors, including agribusiness, renewable energy, trade and Africa–China banking, as well as ICT and telecommunications. Additional sessions covered areas such as family business sustainability, artificial intelligence, employee value banking, insurance, pension and wealth management.

The event featured a keynote address by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who emphasised the urgent need for Nigeria to reposition itself as a leading export-driven economy to achieve sustained growth.

“Our true potential lies in becoming a leading export economy,” Edun stated. “Increased participation in regional and global trade will be critical to diversifying foreign exchange earnings and driving inclusive growth.”

He noted that while Nigeria’s GDP growth has improved to approximately 4 per cent, it remains below the level required to significantly reduce poverty. According to him, the country’s economic strategy is now shifting from stabilisation to growth acceleration, with trade expansion playing a central role.

Mr Edun highlighted ongoing reforms, including improved foreign reserves, rising non-oil revenues and renewed investor confidence, as indicators of a more resilient economy. However, he stressed that enhancing trade competitiveness would require continued investment in infrastructure, logistics and policy coordination.

He also highlighted the importance of small and medium-sized enterprises (SMEs), which account for over 90 per cent of businesses, noting that inclusive growth will depend on stronger collaboration between the public and private sectors.

Participants engaged in a rich line-up of activities, including expert presentations, panel discussions and high-level networking opportunities. Highlights of the summit included the Africa Trade Barometer presentation, client testimonial showcases and insightful discussions on the state of the African economy and intra-African trade opportunities.

Breakout sessions on agribusiness, ICT and healthcare, Africa-China banking and trade, as well as renewable energy, provided attendees with deeper, practical insights into some of the most critical sectors driving Nigeria’s economic future.

Speaking at the event, Mr Chuma Nwokocha, chief executive of Stanbic IBTC Holdings, represented by the organisation’s Chief Finance and Value Management Officer, Mr Kunle Adedeji, emphasised the importance of collaboration and innovation in driving sustainable growth.

“This summit has reinforced the importance of creating platforms where ideas can flourish, and businesses can grow sustainably. By working together, we can unlock new opportunities and drive economic advancement across Nigeria and the African continent,” he said.

The summit also spotlighted practical strategies for integrating sustainability into business operations, encouraging organisations to adopt environmentally conscious practices while maintaining profitability and competitiveness.

Mr Remy Osuagwu, Executive Director, Business & Commercial Banking, expressed satisfaction at the level of interest from participants, a critical element for a successful summit.

“From our conversations on energy and healthcare to the deep dives into trade, Africa-China relations, and agribusiness, Day 1 has offered perspectives that were both insightful and practical. I believe we’re all leaving with a stronger understanding of the opportunities emerging across our industries,” he said.

He acknowledged the level of engagement, questions, contributions and willingness of participants to share experiences, describing this as the real power of the Nigeria Business Summit, and a solid foundation for tomorrow.

The Chief Executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who was represented by Mrs Bunmi Dayo-Olagunju, Deputy Chief Executive of Stanbic IBTC Bank, opened Day Two of the Nigeria Business Summit by highlighting the focus of the summit’s SME Day. 

“Today, we build on Day One’s momentum with conversations that are equally critical for the future – from the dynamics of family businesses to the growing influence of artificial intelligence; the evolution of insurance, and the emerging space of electric vehicle banking.”

She further added, “Our goal on Day Two is simple: to explore what’s next. To understand how these developments will shape our businesses and how we can position ourselves ahead of the curve.”

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Applications Open for GTCO ‘Take on Squad’ Hackathon 3.0

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Squad logo

By Dipo Olowookere

Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.

The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.

The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.

Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.

It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.

 “Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.

“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.

“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.

“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.

The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.

Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.

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Easter: Ecobank Assures Customers Uninterrupted Banking Services

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Ecobank Remodel branches

By Dipo Olowookere

Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.

In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.

It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.

All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.

Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.

They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.

“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.

“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.

“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.

Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”

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