Agusto & Co. assigns an “A-” rating to Union Bank of Nigeria Plc.
The rating expires on 30 June 2019.
The rating assigned to Union Bank of Nigeria Plc (‘Union Bank’ or ‘the Bank’) reflects the Bank’s good capitalisation, ability to refinance, good brand equity, as well as an experienced management team. The rating also takes into account tangible efforts of the Bank to resolve asset quality issues with significant write-offs and loan recoveries, which has led to a 55% drop in non-performing loans as at 30 June 2018. In addition, we believe the raising of additional capital through a rights issue in 2017, as well as the use of technology to improve operations and mobilize deposits, will positively impact Union Bank’s financial performance in the near term.
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