Banking
Union Bank Recovers N8.4bn Debt as Loan to Deposit Ratio Hits 63.4%
By Dipo Olowookere
Union Bank of Nigeria Plc recorded a mixed performance in the first nine months of this year, with the gross earnings going down by 4 percent to N117.2 billion from N122.2 billion as a result of decline in average earning asset.
However, the profit before tax rose by 5 percent to N15.6 billion from N14.9 billion, while the profit after tax increased by 4 percent to N15.2 billion over N14.7 billion in the same time of last year.
In the period under review, the lender recovered N8.4 billion debts from its customers as a result of its debt recovery drive. This brought about the drop in the bank’s non-performing loans (NPLs) ratio to 8.0 percent from 8.7 percent at year-end 2018.
Union Bank also increased its loan book by 9 percent to N565.5 billion from N519.7 billion at year-end 2018 as part of its efforts to grow its asset book by creating quality risk assets in targeted sectors of the economy.
This helped the bank to push its loan to deposit ratio to 63.4 percent from 60.6 percent as at the end of last year. The bank is on course to meeting the 65 percent December 2019 target set by the Central Bank of Nigeria (CBN) for commercial banks in the country.
In addition, the customer deposits improved during the period by 4 percent to N892.9 billion from N857.6 billion as at December 2018, reflecting the company’s continuing acquisition of low-cost deposits driven by strengthened brand affinity.
But despite these, the interest income of Union Bank went down by 2 percent to N90.0 billion from N91.5 billion, while the non-interest income depreciated by 12 percent to N27.1 billion from N30.7 billion as a result of reduced market volatility in the year, which had an impact on trading income.
Furthermore, the net operating income reduced by 2 percent to N71.4 billion from N72.7 billion, while the financial institution’s sustained cost optimisation scheme led to the 3 percent drop in operating expenses to N56.2 billion from N58.0 billion.
CEO of Union Bank, Mr Emeka Emuwa, while commenting on the results, said, “Our continued focus on consumer centric service and product propositions is yielding solid results, contributing to a 28 percent growth in our electronic channels fee income which is at N5.6 billion for the period. Our debt recovery drive continues to record successes with N8.4 billion of recoveries year-to-date.
“In line with our stated business objectives, we are continuing to grow our asset book by creating quality risk assets in targeted sectors. This has led to a 9 percent growth in our loan portfolio to N566.5 billion compared with N519.7 billion at year-end 2018.”
“Going into the rest of the year, our ambition remains to deliver superior customer experience across all customer touchpoints,” the bank executive said further.
On his part, Chief Financial Officer of Union Bank, Mr Joe Mbulu, stated that, “While we had a slight decline in gross earnings for the group from N122.2 billion in 2018 to N117.2 billion, our efficiency initiatives including the deployment of Robotics Process Automation as well as our cost optimisation programme ensured we delivered 4 percent growth in profit after tax, recording N15.2 billion compared with N14.7 billion in the prior year period.
“Our operating expenses reduced by 3 percent to N56.2 billion from N58.0 billion in 9M 2018 and the bank’s customer-related non-interest revenue drivers remained strong with net fee and commission income growing 10 percent to N9.5 billion from N8.7 billion for the corresponding period in 2018.
“We continue to maintain adequate levels of capital with our Capital Adequacy Ratio (CAR) at 17.8 percent which is above the regulatory threshold. Non-Performing Loans (NPLs) declined to 8.0 percent from 8.7 percent as at year-end 2018.”
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.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
