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E-Financial

Unity Bank Repositions to Grow Profits

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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.


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E-Financial

CBN Suspends Dividend, Bonus Payments for Banks under Forbearance

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Central Bank of Nigeria (CBN) has suspended dividend payments to shareholders and bonuses to directors and senior management staff of banks currently benefiting from regulatory forbearance.

CBN Suspends Dividend, Bonus Payments for Banks under Forbearance

Forbearance refers to the temporary reduction or postponement of payments, such as for loans or mortgages, usually introduced to give temporary relief to individuals, and corporations, including financial institutions encumbered by financial straits.

The directive was contained in a circular dated June 13, signed by Olubukola Akinwunmi, director of Banking Supervision, CBN.

According to the CBN, the move is part of efforts to strengthen capital buffers, enhance balance sheet resilience and promote prudent internal capital retention within the banking sector during what it described as a transitional period.

The regulatory forbearance arrangement, which allows banks some relief in meeting credit exposure and Single Obligor Limit (SOL) requirements, is currently being reviewed by the central bank in terms of capital positions and provisioning adequacy.

As part of this review, the CBN directed affected banks to suspend dividend payments, defer bonuses, and refrain from making investments in foreign subsidiaries or launching new offshore ventures.

“This temporary suspension is until such a time as the regulatory forbearance is fully exited and the banks’ capital adequacy and provisioning levels are independently verified to be fully compliant with prevailing standards,” the CBN said.

The bank added that the measure is to ensure that internal resources are retained to meet existing and future obligations and support “the orderly restoration of sound prudential positions.”

The CBN also said it will continue to monitor developments and engage with institutions as necessary.

The move comes amid efforts to tighten supervision across the financial system following recent banking sector reforms and recapitalisation directives.

 


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E-Financial

Fidelity Bank ED, Kevin Ugwuoke takes over as President of Risk Managers Association

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L-R: Registrar/Chief Executive, Chartered Risk Management Institute of Nigeria (CRMI), Victor Olannye; Divisional Head, Risk Management Securities and Exchange Commission (SEC), Grace Abioye; Immediate Past President, CRMI, Ezekiel Oseni; President, CRMI and Executive Director/Chief Risk Officer, Fidelity Bank Plc, Kevin Ugwuoke; Director, Enterprise Risk Management, Nigeria Deposit Insurance Corporation (NDIC), Amal Haruna; and Rep. Keynote speaker, Deputy Group Management Director, United Bank of Africa (UBA), Chukwuma Nweke; at the CRMI Conferment Handover/Sent-Forth ceremony, held in Lagos recently.
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Kevin Ugwuoke, Executive Director and Chief Risk Officer of Fidelity Bank Plc, has formally assumed office as President of the Chartered Risk Management Institute of Nigeria (CRMI).

L-R: Registrar/Chief Executive, Chartered Risk Management Institute of Nigeria (CRMI), Victor Olannye; Divisional Head, Risk Management Securities and Exchange Commission (SEC), Grace Abioye; Immediate Past President, CRMI, Ezekiel Oseni; President, CRMI and Executive Director/Chief Risk Officer, Fidelity Bank Plc, Kevin Ugwuoke; Director, Enterprise Risk Management, Nigeria Deposit Insurance Corporation (NDIC), Amal Haruna; and Rep. Keynote speaker, Deputy Group Management Director, United Bank of Africa (UBA), Chukwuma Nweke; at the CRMI Conferment Handover/Sent-Forth ceremony, held in Lagos recently.

His leadership promises a reform-focused era anchored on policy advocacy, ethical standards, and digital innovation to deepen risk governance across sectors in the country.

Speaking during the presidential handover ceremony in Lagos over the weekend, Ugwuoke — who also doubles as acting President of the Federation of African Risk Management Associations (FARMA) — described his election as “a call to action.”

He pledged to reposition CRMI as a thought leader and institutional partner in shaping the future of risk management in Nigeria’s national development.

“Our mission is more than just certification; it’s about strengthening the culture of risk governance across sectors. We will collaborate with regulators, raise awareness, and provide practical tools to help organizations embed risk discipline at all levels.”

Ugwuoke outlined a five-pronged strategy to guide his administration: strengthening professional education and certification; deepening policy and regulatory engagement; accelerating digital transformation; integrating ESG and climate risk into corporate strategies; and mentoring the next generation of risk practitioners.

He explained that CRMI will align its initiatives with key policy institutions — including the Nigerian Economic Summit Group, the National Assembly, and sub-national governments — to help embed robust risk frameworks into economic development plans.

“We must integrate risk thinking into how we plan, govern, and invest. We will advocate for more inclusive regulations to empower small and medium enterprises, improve macroeconomic stability, and foster institutional resilience.”

Ugwuoke also announced plans to revise the Institute’s curriculum, introduce specialized certifications to reflect emerging risks, and implement a new National Risk Observatory to provide real-time risk data to both the public and private sectors.

“Digital innovation will be central to how CRMI operates going forward. We are automating our backend, delivering more virtual training, and employing technology to scale our impact across the country and beyond.”

In his remarks, the outgoing President of CRMI, Ezekiel Oseni, challenged the new leadership to consolidate on the achievements made under his tenure — from securing chartered status and strengthening partnerships to gaining greater international recognition — and take the Institute to the next level.

Also speaking on the occasion, Chukwuma Nweke, deputy managing director of United Bank for Africa (UBA), delivering a goodwill message on behalf of Group Managing Director, Oliver Alawuba, described Ugwuoke as a worthy successor.

“As Professor Oseni hands over the baton to Kevin Ugwuoke — a well-respected leader in the risk management ecosystem — we are assured CRMI is poised for greater achievements under his watch.”

Nweke stressed that growing economic uncertainties — from inflation and exchange rate volatility to growing debt — underscore the need for a more strategic view of risk. “Risk must be recognized not as a compliance obligation or a cost center but as a key enabler of resiliency and growth. Institutions that embed risk into their strategies will absorb shocks more effectively, unlock value, and inspire investor confidence.”

As part of the day’s ceremonies, 11 distinguished practitioners were conferred with the Fellow of Chartered Risk Manager (FCRMI) award, while 21 new members were formally inducted as Chartered Risk Managers (CRM). Furthermore, a new Governing Council was inaugurated to oversee the affairs of the Institute for the 2025–2027 term, marking a decisive step forward in institutional renewal and policy direction.


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E-Financial

Sterling Bank Pledges ₦2bn to Fully Fund University Scholarships

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Sterling Bank has launched a ₦2 billion scholarship initiative to support Nigerian students in private universities. The program, Beyond Education, was unveiled on Democracy Day and aims to remove financial barriers to higher learning.

The bank will fully sponsor 600 students from across Nigeria’s 36 states and the FCT to study Technology, Finance, Sales, and Public Health at Miva University, founded by Sim Shagaya. The selection process is merit-based, with candidates nominated by themselves or others, and final selection determined through public voting open to Sterling account holders.

Sterling Bank’s CEO, Abubakar Suleiman, described the initiative as an investment in Nigeria’s future, aligning with the bank’s commitment to Health, Education, Agriculture, Renewable Energy, and Transportation. The bank has already deployed over half a trillion naira in financing across these sectors.

According to Obinna Ukachukwu, Growth Executive at Sterling Bank, the program is about creating opportunities beyond education. The bank is shifting from short-term philanthropy to long-term ecosystem development, with investments in digitized healthcare, school financing, agricultural cooperatives, solar energy, and transport systems.

“Nigeria’s progress requires action,” Suleiman said. “We are funding the future architects of the country—those who will build the businesses, institutions, and innovations needed for national prosperity.”

Nominations for the Beyond Education scholarships are now open at www.sterling.ng/FUTURE. The initiative sets a precedent for private-sector-driven education investment, where success is measured not just in profit, but in people empowered.


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