Global Credit Ratings Co. (GCR) Affirms Union Bank’s BBB+ Rating, with Stable Outlook

The Global Credit Ratings Co. (GCR) has affirmed Union Bank of Nigeria’s credit ratings of BBB+ and A2 for long and short term respectively, just as it also assigned a stable outlook on the bank.

According to a statement, GCR took into consideration the bank’s improved market position in Nigeria’s highly competitive banking industry following its recapitalisation in 2012, and improved NPL ratio and profitability metrics in subsequent years.

In 2013, Union Bank embarked on a transformation programme to reposition the bank and once again become a respected provider of quality banking services in Nigeria. The bank has since then executed critical initiatives around infrastructure, technology and human capital in line with its strategic objectives. In October 2015, Union Bank unveiled a new brand identity, signalling readiness to operate more competitively in the Nigerian financial industry.

Commenting on the ratings, its Chief Executive Officer, Mr. Emeka Emuwa, said: “The affirmation of the bank’s credit ratings from the previous year is a result of the management’s focus on rebuilding fundamentals and positioning Union Bank for sustainable long term growth. We are pleased that GCR’s review highlights some of the key successes of the bank’s robust transformation programme over the past three years. Going forward, the bank will continue to focus on delivering consistent growth to all its stakeholders in the short and medium term.”

Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is a household name and one of Nigeria’s long-standing and most respected financial institutions.

“The bank is a trusted and recognizable brand, with an extensive network of over 300 branches across Nigeria. In late 2012, a new Board of Directors and Executive Management team were appointed to Union Bank and in 2014 the bank began executing a transformation programme to re-establish it as a highly respected provider of quality financial services.

“The bank currently offers a variety of banking services to both individual and corporate clients including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. The bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, Debit Cards, ATMs and POS Systems,” the story added.