Banking
Union Bank to Grow Retail Customer Base Despite N5.9tr Legal Battle
By Dipo Olowookere
Tier-2 lender, Union Bank of Nigeria, has expressed its desire to focus more on improving its retail customer base as it forges ahead in the year.
Managing Director of the financial institution, Mr Emeka Emuwa, while speaking at the firm’s 49th Annual General Meeting (AGM) at the International Conference Centre (ICC), Abuja on Tuesday, disclosed that Union Bank was now in pole position to execute its growth agenda from 2018 onwards.
According to him, “Strengthening our capital base through the Rights Issue was key for the bank in 2017.
“Notwithstanding the challenges a tightened economy presented, the rights issue was 20 percent oversubscribed.”
He attributed this overwhelming success to “strong shareholder and investor confidence in Union Bank’s immediate and longer-term plans.”
The bank chief said, “With sufficient capital buffers, we are now in pole position to execute our growth agenda from 2018 onwards.”
“Operationally, we continued to focus on growing our retail customer base and optimising customer experience with simpler, smarter banking solutions,” he added.
“We launched an upgraded suite of digital channels including UnionMobile, UnionOnline and our unique USSD banking code *826#, driving an increase in active subscribers above 100 percent on the mobile app and online banking platforms.
“Union Bank’s alternative banking platform remains the fastest growing in the industry. We continue to attract broad segments of new customers, adding 90 percent more new-to bank customers in 2017 compared to 2016,” Mr Emuwa said further.
A breakdown of Union Bank’s results for the 2017 financial year showed that the lender reported a profit before tax (PBT) of N15.5 billion and a profit after tax of N14.6 billion.
The bank also achieved gross earnings of N163.8 billion with the operating expenses increasing to N65.1 billion from N62 billion in 2016 due to inflationary pressures and the impact of devaluation on technology and network investments.
Furthermore, interest income grew by 25 percent to N124.5 billion from N99.7 billion in 2016, as a result of the impact of Naira devaluation on the foreign currency denominated loan book, government securities yields and loan book repricing.
Non-interest revenue also moved up by 31 percent to N39.3 billon from N29.9 billion in 2016, driven by improved fee and commission income, trading income and a more effective debt recovery machine.
In addition, gross loans grew by five percent to N560.7 billion compared with N535.8 billion in 2016, while customer deposits rose by 22 percent to N802.4 billion from N658.4 billion in 2016, continuing its upward trajectory since 2016.
The growth was led by investments in customer-led products, recently upgraded alternate channels, along with a strengthened brand.
Union Bank’s annual report showed that the bank has a non-performing loan ratio of 19.78 percent of a total N517.1 billion at the end of the financial year under review.
Meanwhile, Chairman of Union Bank, Mr Cyril Odu, who presented the financial institution’s report to shareholders, said the lender was involved in 850 litigation cases with the amount claimed to total N220.26 billion.
However, he added that the total amount claimed in cases instituted by Union Bank in court amounted to N77.17 billion.
According to him, “A total provision of N2.98 billion has been made based on the advice of professional legal counsel.”
In its financial statements, Union Bank said, “There are three cases with total claim of N5.921 trillion of which judgement was awarded against the Bank in conjunction with other parties and provisions were not recognised in the financial statements.
“Management is of the view that a high level of success is expected at the Court of Appeal based on professional legal advice and that the likelihood of outflow of economic resource is considered remote.
“The Directors are of the opinion that none of the aforementioned cases is likely to have a material adverse effect on the Bank and are not aware of any other pending or threatened claims and litigations besides those included in the above number.”
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.
