Business
Union Bank and BFREE Forge Strategic Partnership to Revitalize Loan Portfolios
Union Bank of Nigeria and BFREE, a cutting-edge German-Nigerian FinTech firm, have signed a Memorandum of Understanding (MOU).
This agreement signifies a joint commitment to addressing economic challenges and revitalising distressed loan portfolios in Nigeria. This MOU was formalised during the German-Nigerian Business Forum in Berlin on November 21, 2023.
Under the terms of the MOU, BFREE, in conjunction with its international financing partners, will explore the acquisition of distressed loan portfolios from Union Bank, with a potential investment cap of $40 million. The key focus will be refinancing non-performing loan portfolios, particularly those delayed in repayment or already written off.
Union Bank, a leading provider of loans to Retail customers and Small & Medium Enterprises in Nigeria, has proactively adapted to the challenging economic environment. The ongoing economic pressures have necessitated increased flexibility for loan repayment plans, and BFREE, leveraging artificial intelligence (AI), presents an innovative solution.
BFREE’s AI-driven automated interaction with loan customers facilitates discussions and agreements on revised loan terms. This streamlined approach enables the rapid review of many loan agreements within short periods, resulting in higher repayment rates and reduced instances of loan write-offs for Union Bank. It also demonstrates the Bank’s confidence in BFREE’s robust recovery process. This strategic partnership not only positions Union Bank for enhanced financial resilience but also relieves the institution of the burden of managing low-performing loan portfolios.
President Tinubu’s active participation in promoting Nigeria as a prime destination for business and investment underscores the collaborative efforts to attract international businesses. The anticipated increase in foreign currency inflow, particularly USD and EUR, is expected to alleviate pressure on the exchange rate of the Naira, contributing to economic stability.
Speaking about the partnership, Joe Mbulu, Executive Director of Union Bank, said:
“We are excited about the strategic partnership with BFREE as it aligns with Union Bank’s commitment to innovation and adaptability. This collaboration signifies our dedication to finding innovative solutions to the economic challenges faced by our customers. By leveraging BFREE’s advanced AI capabilities, we aim to enhance the efficiency of our loan portfolio management, ensuring flexibility for our customers in these challenging times.
This partnership reflects Union Bank’s proactive approach to navigating the evolving financial landscape and reinforces our commitment to providing sustainable financial solutions to individuals and businesses in Nigeria.”
Also commenting on the partnership, Julian Flosbach, Chief Executive Officer of BFREE, expressed:
“BFREE is thrilled to announce our strategic partnership with Union Bank, a collaboration that underscores our joint commitment to innovation and resilience in the face of economic challenges. With a track record of successfully managing over 4 million distressed customers across Africa, BFREE brings extensive experience to the table. Our proprietary AI capabilities will play a crucial role in streamlining Union Bank’s loan portfolio management, offering unparalleled flexibility to customers during these challenging times. The commitment of our financing partners is instrumental in driving this initiative, highlighting their dedication to supporting Union Bank’s revitalisation efforts.”
Union Bank is optimistic that this strategic partnership with BFREE will not only bolster the bank’s financial health but also contribute significantly to the broader economic recovery of Nigeria.
Polaris Bank’s commitment to digital innovation and excellence has once again been recognized, as the Bank was awarded the prestigious “Best Mobile App” award for its renowned digital banking platform, VULTe, at the Digital Jurist Awards held October 31 at Eko Hotel in Victoria Island, Lagos.
This honor comes less than a week after Polaris Bank was named Nigeria’s Digital Bank of the Year for the fourth consecutive year, further solidifying its status as a leader in Nigeria’s digital banking landscape.
At the event, attended by representatives from all nominated companies, Polaris Bank’s VULTe app stood out among its peers, winning the hearts of users and the recognition of industry experts.
The Digital Jurist Awards Committee had nominated Polaris Bank in three categories: Best Website, Best Web Portal, and Best Mobile App.
The Bank’s innovative approach and customer-centric digital solutions have made it a formidable contender in each category, with VULTe’s win affirming the Bank’s continued drive to redefine digital banking in Nigeria.
Commenting on the the award, Polaris Bank’s Managing Director/CEO, Kayode Lawal expressed gratitude for the recognition and reiterated the Bank’s commitment to providing seamless, reliable, and secure digital solutions.
“This award continuously shows our dedication to delivering the best digital experiences to our customers. We will continue to push the boundaries of innovation to ensure that our platforms remain intuitive, accessible, and impactful,” he said.
Polaris Bank’s VULTe app has gained widespread acclaim for its user-friendly design, robust security features, and diverse functionalities, enabling customers to manage their banking needs from the comfort of their devices.
Winning the “Best Mobile App” award is yet another milestone in the Bank’s digital journey, reinforcing its position as a digital pioneer in Nigeria’s banking sector.
The Bank extends its gratitude to the Digital Jurist Awards Committee and its loyal customers for their continued trust and support. Polaris Bank is committed to advancing digital banking in Nigeria, creating convenient, modern, and secure solutions that cater to the evolving needs of its customers.
Polaris Bank was adjudged Nigeria’s Digital Bank of the Year in 2024,2023, 2022 and 2021 and MSME Bank of the Year 2022, 2023 and 2024 in Business Day’s Banks and Other Financial Institutions (BAFI) Awards.
The black market dollar to Naira exchange rate on Sunday 3rd November 2024 can be accessed below.
JomogNews Nigeria has obtained the official naira black market exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC), and CBN rates.
Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market. As of now, you can purchase 1 dollar at a certain rate now, however, it’s important to remember that the rate can shift (either upwards or downwards) within hours.
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
According to Bureau De Change (BDC) sources, the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players bought a dollar for N1710 and sold it for N1720 on Sunday, November 3rd, 2024.
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate N1730
Selling Rate N1740
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Buying Rate N1730
Selling Rate N1740
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
GTCO Plc released its third-quarter results, showing that pre-tax profits rose to N215.69 billion, compared to N105.8 billion recorded in the corresponding quarter of 2023.
These third-quarter profits helped boost the financial holding company’s nine-month pre-tax profits to N1.2 trillion — the highest on record in the financial services sector, following the N1 trillion milestone achieved in the first half of the year.
The nine-month performance also enabled the bank to reach N1 trillion in profit after tax for the first time, making it the first bank to achieve this milestone.
The bank reported total assets of N15.6 trillion for the first time in its history, while net assets also rose to N2.62 trillion — another all-time high for the company.
Key Highlights (third quarter)
- Net Interest Income: N362.4 billion, +143.9%, YoY
- Loan Impairments: N16.16 billion, +148.5%, YoY
- Net Fees and Commission: N57.4 billion, +85.8%, YoY
- Pre-tax Profits: N215.69 billion, +103.9%, YoY
- Loans and advances: N3 trillion, +36.1, YoY
- Total Deposits: N11.2 trillion, +77%, YoY
- Total Assets: N15.6 trillion, +81.3%, YoY
- Net Assets: N2.6 trillion, +106.8%, YoY
Commentary
A cursory review of the results reveals that GTCO reported a pre-tax profit of N215.6 billion in the quarter under review.
- While this figure more than doubled the profit reported a year earlier, it fell below the N509.3 billion and N494.4 billion recorded in the first and second quarters of the year, respectively.
- A deeper analysis of the company’s financial statement shows that the drop in pre-tax profits was due to a decline in its other operating income, which swung to a N52.8 billion loss from a N305.3 billion profit in the second quarter.
- This income line also contributed N324.9 billion in the first quarter of the year. Notably, the company reported an “unrealised gain on forward transactions” of N32.1 billion for the first nine months of this year, down from N130.2 billion in the first six months.
Despite this decline, the HoldCo crossed the N1 trillion profit after tax mark for the first time ever, becoming the first in the financial services sector to achieve this milestone.
- GTCO’s net interest income rose to N781.48 billion, marking a substantial 162.6% year-on-year increase.
- This growth was driven by an increase in interest-earning assets or higher rates, allowing GTCO to benefit from a favorable interest environment.
- This strong performance in net interest income highlights GTCO’s effective asset allocation strategy, which leaned towards fixed income securities amid rising interest rates.
Net fee and commission income almost doubled to N158.55 billion, reflecting a 92.2% year-on-year increase. - This rise in fee-based revenue underscores GTCO’s diversification strategy, with income generated from non-interest sources such as credit-related fees and commissions, e-business income, account maintenance charges, transaction fees, ancillary banking charges, and other services.
- In an industry where margins on traditional lending can be thin, this strong growth in fee income reflects GTCO’s adaptability and engagement with its customer base.
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