Nigeria

Union Bank of Nigeria is back in top spot this year, based in part on a surge in profits and a very respectable overall financial position. In 2003, profits were up 41%, Tier 1 capital grew by 32% and assets were up 22%. On the back of this, return on equity was back up above 20% after slipping to 18% in 2002. What swayed the judges, however, was Union Bank’s commitment to low income customers and small and medium-sized enterprises. The bank permits customers to open accounts with a minimum balance of just 2000 Naira ($15), the lowest in the industry. Union Bank is also the largest contributor to the recently formed Small and Medium Industries Equity Investment Scheme. And the bank once again won the Nigerian Central Bank’s award for best agricultural financing bank. Against the backdrop of an ambitious government reform initiative which aims to promote and boost small scale private enterprise, particularly in the area of farming, Union Bank’s successes in this area are not just a highlight of past performance but also bodes well for the future.