Global Credit Ratings Co. (GCR) has rated Union Bank of Nigeria BBB+ and A2 for long and short term, respectively, and a stable outlook through June 2017.
According to GCR, the ratings take into consideration the bank’s improved market position in Nigeria’s highly competitive banking industry following its recapitalisation in 2012, and improved non-performing loan (NPL) ratio and profitability metrics in subsequent years.
In 2013, Union Bank embarked on a transformation programme to reposition the bank to becoming a respected provider of quality banking services in Nigeria. In that time, the bank has executed critical initiatives around infrastructure, technology and human capital in line with its strategic objectives. In October 2015, it unveiled a new brand identity, signalling readiness to operate more competitively in the Nigerian financial industry.
Commenting on the ratings, Emeka Emuwa, chief executive of the bank, 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.”
