Banking
GCR Affirms Union Bank’s National Scale Rating of BBB+(NG)
By Dipo Olowookere
The national scale ratings assigned to Union Bank of Nigeria Plc of BBB+(NG) and A2(NG) in the long and short term respectively have been affirmed by Global Credit Ratings.
Also, the firm announced last Thursday that the ratings are with stable outlook and that they remain valid until June 2018.
Commenting on the ratings, Global Credit Ratings disclosed that the rating took into consideration the lender’s successful capital raising exercise of N49.7 billion through a Rights Issue, which was concluded in December 2017, with 120 percent subscription.
While the bank’s capital adequacy ratio had declined to 13.3 percent at FY16 against the required minimum of 15 percent for international commercial banks, the newly raised capital is to be largely utilised to regularise the shortfall and support working capital.
Furthermore, the 20 percent over-subscription is considered a reflection of shareholders’ continuous support for the bank.
Union Bank’s gross non-performing loan (NPL) ratio rose from 6.9 percent at FY16 to 9.1 percent at 3Q FY17, becoming a major concern for the ratings.
In addition, per management, the increase in NPL was largely due to macro-economic pressures on businesses across the country, and its resultant effect on the loan book.
Nonetheless, cognisance is taken of the effort towards NPL recovery, as the bank reported N2 billion in recoveries at 3Q FY17, compared to N923 million recorded for the same period in FY16.
Union Bank’s regulatory liquidity ratio stood at 40.6 percent at 3Q FY17, against the regulatory minimum of 30 percent, while the liquid assets to short term funding ratio rose to 30.4 percent from 21.5 percent at FY16.
Performance based on unaudited 3Q FY17 results, reflect a pre-tax profit of N13.0 billion, representing 2.1 percent decline from the corresponding period in FY16.
Primarily driving the performance was an annualised 20.4 percent growth in interest income to N88.5 billion, but a similar rise in interest expense (up by an annualised 68.1 percent) constrained net interest income to N46.9 billion.
However, profitability was further enhanced by a decline in net impairment charge to N5.9 billion from N12.7 billion at 3Q FY16.
Operating expenses increased by 10.1 percent (which management attributed to inflationary pressure) from the 3Q FY16 position and as such the cost ratio rose to 72.2 percent from 66.2 percent at FY16.
Return on average equity and assets (ROaE and ROaA) stood relatively stable at 6.1 percent and 1.3 percent respectively.
GCR says it considers the capital raising exercise as rating positive. The appropriate deployment of capital and regularisation of capital adequacy metrics, sustained improvement in profitability, asset quality and liquidity measures, and a further strengthening of the bank’s competitive position in the domestic market, could lead to upward ratings migration.
However, a downward review of the rating may result from a further decline in asset quality and earnings metrics, high capital encumbrance by unreserved NPLs and tight liquidity.
By Aduragbemi Omiyale
The N3.97 billion commercial paper issuance of AG Mortgage Bank Plc will close on Thursday, June 18, 2026.
The sale of the debt instrument by the real estate lender commenced on Wednesday, June 10, 2026.
It is under the N5 billion commercial paper issuance programme of the lending firm aimed to support its short-term working capital and funding requirements.
The company is selling the papers in two series, with Series 2 offered at a discounted rate of 19.2895 per cent for 270 days, and Series 3 at a discounted rate of 19.3651 per cent for 364 days.
The minimum subscription is N5 million, and subsequent additions of N1 million.
AG Mortgage Bank is a leading primary mortgage bank in Nigeria with over two decades of experience in providing affordable mortgage financing and housing finance solutions.
The bank has grown its asset base to over N33 billion and remains a key participant in major housing intervention programmes, including the National Housing Fund Scheme and other government-backed mortgage initiatives.
Supported by a diversified product offering, strong institutional credibility, and an experienced management team, AG Mortgage Bank continues to deliver solid financial performance.
For FY 2025, interest income increased by 28.1 per cent to N3.65 billion, while profit after tax rose by 130.0 per cent to N1.05 billion, reflecting strong earnings growth, operational efficiency, and prudent risk management.
By Aduragbemi Omiyale
The chairman of Access Holdings Plc, Mr Aigboje Aig-Imoukhuede, has reaffirmed the organisation’s long-term commitment to shareholders, expressing confidence in the company’s strategic positioning, which he said is underpinned by disciplined execution, a diversified business model, a strengthened capital base, and a clear focus on sustainable value creation.
Speaking at the 4th Annual General Meeting (AGM) of the firm on Wednesday, he explained that the temporary suspension of dividend distributions was a consequence of regulatory compliance requirements rather than any deterioration in the group’s financial performance.
Mr Aig-Imoukhuede reaffirmed that the financial institution’s earnings capacity remains strong and that the board’s position reflects adherence to supervisory expectations and prudent capital management principles.
He assured shareholders of the board’s commitment to resuming dividend payments as soon as the relevant regulatory conditions are satisfied, noting that, “Our approach is clear: capital retained today must translate into greater value tomorrow and sustainable returns for our shareholders.”
The Chairman reiterated the strategic imperative underpinning the company’s next phase of growth, saying, “Our strategy, From Scale to Value, reflects the natural evolution of our journey. Scale created opportunity; value creation is how we fully realise it.”
He noted that while the organisation continues to generate strong returns, ensuring that earnings per share consistently exceed the cost of capital remains central to unlocking sustainable shareholder value.
The retired banker also acknowledged the significant unrealised value embedded within the firm’s international subsidiaries and reiterated management’s focus on improving market recognition of that intrinsic value over time.
Commenting on the financial performance of the group in 2025, he said Access Holdings accelerated provisions on legacy and regulatory forbearance credit exposures, resulting in elevated impairment charges.
He explained that the group consciously prioritised balance sheet strength and long-term resilience over short-term earnings optimisation.
“Periods of economic uncertainty often reveal more about an institution than periods of uninterrupted growth. Our focus remains on building a business that is not only growing, but improving in the quality, resilience, and sustainability of its earnings,” he stated.
Last year, the financial services organisation delivered pre-tax profit of N1.007 trillion, underscoring the strength of its diversified platform and expanding earnings base across key markets. Total assets increased to N51.56 trillion, while customer deposits grew strongly, reflecting sustained franchise momentum and deepening customer trust.
By Modupe Gbadeyanka
A new report highlighting the transformation from a newly established fintech venture into one of Nigeria’s leading payment infrastructure providers has been launched by HabariPay Limited.
The report, known as the HabariPay Impact Report 2025, provides stakeholders with a comprehensive evolution, innovation journey, business performance, and impact of the fintech subsidiary of Guaranty Trust Holding Company (GTCO) Plc on the digital payments landscape.
The company’s contributions to enabling digital commerce, supporting businesses, strengthening payment infrastructure, and expanding financial access through technology-driven solutions were also captured in the piece.
The HabariPay Impact Report 2025 also highlights the organisation’s strong financial and operational performance, the growth of the Squad platform, and the development of infrastructure that powers payment acceptance, switching, transfers, merchant services, and value-added solutions.
The publication further explores the role of innovation, talent development, and ecosystem partnerships in driving the company’s success.
It showcases HabariPay’s investments in innovation through initiatives such as the Take on Squad Hackathon and the Squad Hackademy, both of which are helping to develop future technology talent and accelerate the creation of practical solutions to real-world challenges.
“As a technology-driven company, we believe that impact extends beyond financial performance. It is reflected in the businesses we enable, the merchants we support, the infrastructure we build, and the opportunities we create for the next generation of innovators.
“The HabariPay Impact Report 2025 captures this journey and demonstrates our commitment to creating sustainable value for customers, partners, and the broader economy,” the Managing Director of HabariPay, Ms Eduofon Japhet, said.
“The HabariPay Impact Report 2025 represents more than a reflection on our achievements; it is a testament to the deliberate investments we have made in building sustainable payment infrastructure, empowering businesses, fostering innovation, and creating long-term value for our stakeholders.
“As we look ahead, we remain committed to expanding our capabilities, deepening our impact, and shaping the future of digital payments through technology-driven solutions that are secure, scalable, and inclusive,” she added.
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