E-Financial
Unity Bank Repositions to Grow Profits
Unity Bank Plc said it is now positioned to increase lending activities and grow profitability.
Its audited result and accounts for financial year ended December 31, 2019, of the lender showed despite the low yield environment during the period, it was able to improve on its total operating income and reduced operating expenses to boost profitability.
After 2017 balance sheet clean up, the bank reported improved balance sheet growth with increases in lending to customers and improved deposits.
Ebenezer Kolawole, Executive Director, Finance & Operations at Unity Bank, at a virtual media briefing recently expressed that the significant increase in total assets in the last three years is great achievement for the management and staff of the bank.
According to him, “The growth of about 40 per cent in total asset is a great achievement and we also need to look at the bank’s assets base in the last three years.
“In 2017, we closed with total assets of N134 billion. In 2018, it grew to N210 billion and in 2019, we reported N293 billion total assets.”
For the first time in the past five years, the bank declared gross earnings of N44.59 billion and N293 billion total assets, thereby consolidating on the gains on the reforms instituted by the Bank to grow a healthy balance sheet for the past two years. The bank has improved on its lending to the real sector with over N100 billion granted as loans and advances to customers in 2019. The solid financial performance for the period ended December 31, 2019, affirms Unity Bank as one of the leading banks in terms of resilience and a transformed bank amid a challenging business environment in Nigeria.
The 2019 results revealed a number of positive performances as the management continued to reposition its stands on value creation for shareholders and improved on lending to the real sector to support the federal government’s drive to revive the nation’s economy.
Reduction in OPEX, Increase in Total Operating Income Drive Profits Unity Bank for the period under review reported 28.7 per cent increase in gross earnings to N44.59 billion in 2019 from N34.65 billion reported in 2018.
The bank interest income also increased by 21.8 per cent to N35.95 billion in 2019 from N29.5 billion in 2018, over increasing interest generated from loans and advances to customers that moved from N17.64 billion in 2018 to N21.89 billion reported in 2019.
Also. interest generated from placement from other banks moved from N361 million in 2018 to N632 million reported in 2019. More so, interest expense grew by 25 per cent to N19.45 billion in 2019 from N15.5 billion reported in 2018, even as attributed higher bank charges closed 2019 at N10.12billion in 2019 as against N7.7 billion reported in 2018.
Continuing the trend during the year, Net interest Income was stronger in 2019, gaining 18.1 per cent to N16.49 billion in 2019 from N13.97 billion in 2018. In terms of fees generated from banking operations, the lender reported N4.98 billion net fee and commission income in 2019 from N2.3 billion reported in 2018, an increase of 11.3 per cent.
The Bank improved on its Electronic transactions amid gaining more customers and rolling out more ATMs and POS at strategic locations across the country.
Kolawole explained that “in agriculture, we have over 1.5 million farmers in our primary production that banked with us and the number continued to grow as we speak.”
For the year under review, Unity Bank reported a 31.5 per cent increase in total operating income to N25.13 billion in 2019 from N19.11 billion reported in 2018. On the cost side, total Operating Expenses (Opex) dropped by 5.5 per cent to N19.6 billion, as against N20.7 billion in 2018, which is below average inflation rate within the period, a reflection of cost-efficiency gains.
The Bank had embarked on several cost minimization initiatives that have continued to yield positive results as personal expenses dropped to N9.43 billion in 2019 from N9.98 billion reported in 2018 while other operating expenses moved to N8.37 billion in 2019 from N9.35 billion in 2018.
Kolawole speaking on cost said, “We have tried to reduce our cost because that is within our control. We have tried to make sure we do not have any waste at all. We make sure where our money is going to, money is coming back to the bank.
“This has contributed to improved cost to income ratio of Unity bank and it has helped us showcase our impressive 2019 financial year performance.”
Notwithstanding the challenging business environment in Nigeria, the Bank’s Profit Before Tax was impressive at N3.64 billion, compared to a loss of N7.55 billion reported in the 2018 financial year. Furthermore, the Profit After Tax closed positive in 2019, reporting N3.38 billion in 2019 compared to a loss of N7.7 billion reported in 2018.
United Bank for Africa (UBA) has informed its customers that, in compliance with a new directive from the Nigerian Communications Commission (NCC), charges for USSD banking services will no longer be deducted from bank accounts, effective June 3, 2025.
In a notice sent to customers, the bank explained that the charges would now be deducted directly from users’ mobile airtime balances, in line with the NCC’s newly introduced End-User Billing (EUB) framework.
It said the new model aimed to ensure transparency in USSD transactions and shift billing responsibility to mobile network operators.
According to UBA, each USSD session would now cost ₦6.98 per 120 seconds, saying that customers initiating transactions would receive a prompt to provide consent at the start of each session, and airtime would only be debited if the bank is available to process the request.
The bank advised customers who are not comfortable with the new billing arrangement to opt for other digital banking alternatives such as the UBA mobile app and internet banking platform, which remain fully operational and user-friendly.
UBA reaffirmed its commitment to providing secure and accessible digital services, and encouraged customers to choose the channel that best suits their banking needs.
The policy marks a significant shift in Nigeria’s digital banking ecosystem and is expected to address longstanding disputes over USSD service charges between telecom operators and financial institutions.
E-Financial
Fitch Upgrades Fidelity Bank’s National Rating to ‘A+(nga)’, Affirms Long-Term IDR at ‘B’
Global credit rating agency, Fitch Ratings, has affirmed Fidelity Bank Plc’s Long-Term Issuer Default Rating (IDR) at ‘B’ and upgraded its National Long-Term Rating to ‘A+(nga)’ from ‘A(nga)’.
The upgrade, announced on May 29, 2025, reflects the bank’s strengthened capital buffers and improved profitability, signaling continued positive momentum in its performance.
According to Fitch, the rating upgrade is underpinned by Fidelity Bank’s successful capital raise through a rights issue and public offer, as well as a notable improvement in profitability—driven by higher interest income and a stable base of low-cost current and savings deposits.
Commenting on the announcement, Managing Director/CEO of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, said, “This upgrade by Fitch Ratings affirms the resilience of our business model, the strength of our risk management practices, and our unwavering focus on delivering sustainable value to stakeholders.
Despite a challenging macroeconomic environment, we have continued to maintain strong asset quality, solid profitability, and ample liquidity. This recognition reinforces our position as one of Nigeria’s most resilient and customer-focused financial institutions.”
One of the key drivers of the improved rating is the bank’s robust capitalization. Fitch reports that Fidelity’s Fitch Core Capital (FCC) ratio rose to 29.9% at the end of 2024—well above the regulatory minimum. The agency also noted that further capital raising efforts are expected to position the bank to meet the ₦500 billion minimum capital requirement for internationally licensed banks before the 2025 deadline.
Fidelity Bank’s market positioning remains strong. As Nigeria’s sixth-largest bank, it commands approximately 5% of total banking sector assets. The bank’s balance sheet is reinforced by a high proportion of low-cost deposits, which accounted for 93% of total deposits as of year-end 2024—among the highest in the Nigerian banking industry.
The affirmation and upgrade by Fitch is expected to enhance investor confidence and support Fidelity’s continued efforts to scale its operations both locally and internationally.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine.
Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
Securities and Exchange Commission (SEC) has warned the public against investing in unregistered investment schemes, including Silverkuun Investment Cooperative Society/Silverkuun Limited.
In a circular issued in Abuja, yesterday, the commission said its attention had been drawn to the activities of these entities, which falsely present themselves as investment advisers and fund managers in the Nigerian capital market.
“The attention of the Securities and Exchange Commission has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an Investment Adviser/Fund Manager.
“The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Limited is not registered to operate in any capacity in the Nigerian Capital Market.”
SEC advised the public to refrain from engaging with Silverkuun Investment Cooperative Society/Silverkuun Limited or its representatives in respect of any business in the Nigerian capital market.
“The Commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment.
“The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s portal before transacting with them,” the SEC added.
Dr. Emomotimi Agama, director-general of the SEC, recently warned that the Commission would not hesitate to shut down the operations of such unregistered entities while also ensuring that the promoters are made to face the full weight of the law.
Agama said, “we will shut down their operations and the promoters will be made to face the full weight of the law.
“In a major reform, ISA 2025 officially brings digital assets under the SEC’s regulatory purview, defining them as securities and mandating registration for all virtual asset service providers (VASPs) and digital asset exchanges. This development aims to close the regulatory vacuum that has allowed many Ponzi-style platforms to thrive under the guise of cryptocurrency and digital finance.”
Agama also emphasized the Commission’s education-focused strategy to combat fraud through podcasts, digital campaigns, and the introduction of capital market literacy in schools and universities, the SEC aims to equip Nigerians with the knowledge to detect and avoid dubious investments.
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