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Union Bank of Nigeria (UBN) competitive position is a key rating strength, supported by its long operating history and good domestic brand franchise, according to GCR Ratings.
In a Dec. 30th report, GCR said they assessed funding and liquidity as a positive rating factor, underpinned by UBN’s stable funding structure and sufficiently liquid balance sheet.
As of 30 June 2025, the bank reported a balance sheet size of N4.1 trillion (USD2.8 billion), representing approximately 2.8% of the Nigerian banking industry’s total assets.
Operating revenue is stable, with net-interest income and non-interest income contributing 84.7% and 15.3% to operating revenues respectively in June 2025.
“Looking ahead, UBN’s increased value proposition through digitalisation, planned capital injection and the recent regulatory approval for business combination for the planned consolidation with Titan Trust Bank (TTB), could support earnings generation capacity and its competitiveness over the next 12-18 months,” GCR Ratings said.
The bank is largely funded by customer deposits, which constituted 94.9% of the funding base as of 30 June 2025 (31 December 2024: 85.8%).
As of 30 June 2025, customer deposits declined by 4% to NGN2.9 trillion (USD2.0 billion), reflecting the bank’s deliberate reduction in expensive term deposits to lower funding costs.
As at the same date, current and savings account (CASA) deposits accounted for 80.8% of customer deposits (December 2024: 81.2%), contributing to a lower cost of funds of 7.5% relative to 9.4% in December 2024.
Top twenty depositor account for 26.9% as of June 2025 (December 2024: 30.9%), reflecting relatively diversified deposit book.
“Liquidity remains good, with liquid assets covering wholesale fundings and customer deposits by 8.4x and 44.7% respectively in June 2025 (December 2024: 3.6x and 59.8% respectively),” GCR said.
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