The Nation Newspaper

Tag: UBA

  • Yet another victory for Uba

    Yet another victory for Uba

    The ambition of the erstwhile Chairman of the Nigeria Communications Commission, Engr. Ernest Ndukwe, to replace Sen. Andy Uba in the Senate recently suffered a major setback. Ndukwe had headed to the National Assembly Election Tribunal sitting in Awka, asking it to declare him winner of the Anambra South Senatorial election held on April 11, 2015. It will be recalled that the Independent National Electoral Commission (INEC) had declared Sen. Andy Uba winner of the election.

    At the tribunal, Ndukwe filed his petition according to procedure and filed the list of his witnesses and their depositions and the documents to be relied on, also according to procedure. He had 21 days to do this according to the Electoral Act. The latitude of time gives a petitioner and his legal team the opportunity to cross all the ‘t’ s and dot all ‘i’s. The long period also affords time to assemble everything which will help the petitioner and the liability for not availing oneself of this opportunity is very strict.

    This means that the petitioner must file his petition within 21 days and this time cannot on any grounds be extended. It is the proper filing of a petition that invites a respondent to a legal duel, to challenge the depositions of the petitioner and his witnesses. In this present case, it is properly assumed that at the point Ndukwe challenged Andy Uba to the legal contest, he (Ndukwe) and his legal team had taken their time to prepare their case.

    When Andy Uba responded to Ndukwe’s petition, Ndukwe was expected by law to file his reply (if any) to Uba’s response within 5 days of being served with that reply. The liability is also strict and compels the implication that time for filing Ndukwe’s reply cannot be extended beyond the 5 days provided.

    However, mid-way into the sitting of the tribunal on the matter and long after the expiration of 5 days since Ndukwe was served with Uba’s reply; he (Ndukwe) and his lawyers chose to re-write the laws directing the conduct of the tribunal. They deliberately chose not to be guided by the provisions of existing laws. In an application unknown to law, Ndukwe applied to the tribunal, seeking leave of the tribunal to bring in 68 additional witnesses, long after the time stipulated by law.

    Is this mischief, radicalism or rascalism? Lawyers, commentators and reformers would have quite a hectic time debating these. What is note-worthy is that, the tribunal did not hesitate to dismiss the frivolous application. Surprisingly, Ndukwe objected to the ruling of the tribunal and took his objection to the Court of Appeal sitting in Enugu. Would and could the appellate court grant the prayers contained in the application? Would Ndukwe’s bid to scuttle Andy Uba’s election receive momentum? Only time will tell. The time came too soon on Monday 3rd August, 2015.

    Senior Counsel to Ndukwe, Dr. Nnoruka Udechukwu (SAN), leading Emeka Offodile (SAN) and a team of other lawyers had urged the tribunal to allow his application on the ground that the additional witnesses and their oaths were necessary to answer to new issues of facts raised by the Respondents in their replies. Senior Counsel to the Respondent, Sen. Uba, Arthur Obi-Okafor (SAN), leading other lawyers opposed the application. In a unanimous judgment, the Court of Appeal upheld the objections of the Respondent and dismissed the application, thereby, affirming the ruling of the tribunal sitting in Awka, on the matter.

    Hon. Justice Agim, delivering judgment of the court held that the application lacked merit as the 68 additional witnesses and their oaths ought to have accompanied the petitioner’s reply. The court gave four reasons for its judgment and each of the reasons echoes the question; is it mischief, radicalism or rascalism? With utmost respect I further ask; is it ignorance or desperation? Whichever it is, time will also tell.

    The first reason was that contrary to the submissions of the appellants, the tribunal did not prejudge the case of the Petitioners/Appellants since it was them that invited the tribunal by its application to file additional witnesses and their oaths. In other words, the application of the Petitioners mandated the tribunal to adjudicate on the matter in the exercise of its jurisdiction. It is trite that a party who invokes the jurisdiction of the court cannot complain about the exercise of that jurisdiction.

    The second reason derived from paragraph 2 of the Practice Directions for Election Tribunals which Provides that the rule governing the filing of petition applies with equal force to the filing of Petitioner’s Reply. Since list of witnesses and their depositions and documents to be relied on are required to be filed along with the petition, it therefore follows, that these documents have to be filed along with the Petitioner’s Reply.

    When this paragraph is read in conjunction with paragraph 16 (1) (a) of the first schedule to the Electoral Act which requires Petitioner’s Reply to be filed within 5 days of being served, the reply of the Respondent, it means that the list of witnesses and their oaths and documents to be relied on must be filed within 5 days. Paragraph 16 (2) of the first schedule to the Electoral Act expressly provides that the time for filing the Petitioner’s Reply cannot be extended beyond the 5 days provided. It follows that time cannot also be extended for filing additional witnesses and their oaths and additional documents.

    The Court also upheld the Tribunal’s ruling that the respective replies of the Respondents did not raise any new facts as alleged by the Appellants to warrant the filing of the Petitioner’s reply in the first place.

    Finally, the Court held that a party is not at liberty to change on appeal his case at the trial court. The case of the Petitioners/Appellants at the Tribunal is that the additional oaths sought to be allowed are in support of the Petitioner’s reply. They cannot on appeal change their position that the additional oaths are in support of the petition.  In any case, even if they were, time has caught up with them as time cannot be extended beyond the 21 days provided by law.

    It may not be immediately known why Ndukwe’s legal team attempted this frivolity. It does appear as a defeatist approach ab nitio because one does not need a soothsayer to predict its high potentials of un-workability. However, what is immediately known is that the attempt failed woefully but for Andy Uba, it is yet another victory.

    –Obi, a legal practitioner, wrote in from Abuja 

  • UBA endows N53m finance professorial chair

    United Bank for Africa (UBA) Plc has resuscitated the UBA Professorial Chair of Finance at the University of Lagos with an endowment sum of the N52.9 million.

    A cheque to this effect was presented to the Vice Chancellor of the University of Lagos, Professor Rahaman Bello, and members of the institution’s governing council at the weekend in Lagos by Mr. Phillips Oduoza, group managing director of UBA.

    Oduoza, who led other executive management members to the school, said UBA is committed to the promotion of a globally competitive educational system in the country.

    According to him, the bank has seen that there is a huge gap in the funding of educational system in the country and has decided to support in the provision of qualitative education as it strongly believes that a well trained and educated manpower is important the growth and development of the nation.

    He assured that the bank will continue to promote research and innovation in the Nigerian educational system, to boost man-power development and called on other banks, companies, institutions and individuals to emulate the UBA gesture.

    “As first line beneficiaries of quality manpower, to support the pursuit of research and education in all Nigerian universities, private sector endowments will result in the creation of centers of excellence in different Nigerian universities, improving the quality of graduates, decision making and leadership in the society. Government alone cannot make this happen,” Oduoza said.

  • Shareholders earn 23% return as UBA lists 3.3b rights shares

    Amidst the dwindling over all market position at the Nigerians stock market, shareholders of United Bank for Africa (UBA) Plc, who subscribed for the bank’s rights issue in February, have earned more than 23 per cent capital gain.

    UBA had between December 2014 and February 2015 sought to raise N11.5 billion new equity funds from existing shareholders through a rights issue of one ordinary share for every 10 ordinary shares at a price of N3.50 per share. The rights issue was fully subscribed.

    The bank at the weekend listed about 3.3 billion ordinary shares of 50 Kobo each that arose from the rights issue. While the supplementary shares were listed at the offer price of N3.50 per share, UBA opened yesterday at N4.31 per share, providing immediate return of 23.1 per cent or about N2.67 billion capital gains to the rights’ holders.

    The listing was closing step in the final phase of the issuance process, which included dispatch of share certificates and electronic transfer of shares to shareholders’ shareholding account at the Central Securities Clearing System (CSCS). With the shares in the CSCS, the rights’ holders can trade on their shares.

    Average year-to-date return at the Nigerian stock market opened this week at -10.29 per cent, underlining the general negative sentiments that had dominated the market so far this year. This month has so far been a grueling one for investors with substantial average loss across the sectors. Month-to-date analysis showed all indices in the red, which also coloured the average year-to-date performance. So far this month, average return by the All Share Index (ASI), the general benchmark index at the NSE, opened Monday at -7.07 per cent. Returns by other indices were NSE 30 Index, -7.46 per cent; NSE Consumer Goods Index, -9.89 per cent; NSE Oil and Gas Index, -5.33 per cent; NSE Industrial Goods Index, -4.14 per cent; NSE Banking Index, -7.83 per cent while the NSE Insurance Index carried a month-to-date return of 2.91 per cent.

    All the indices, with the exception of the NSE Industrial Goods Index, also showed that nearly all investors have so far this year lost rather than gain in the market. Year-to-date analysis by the start of the market on Monday indicated that average return by the ASI at -10.29 per cent; NSE 30 Index, -9.66 per cent; NSE Consumer Goods Index, -15.96 per cent; NSE Oil and Gas Index, -8.22 per cent; NSE Banking Index, -3.39 per cent; NSE Insurance Index, -6.78 per cent while the NSE Industrial Goods Index played the contrarian with gain of 1.78 per cent.

    Investment advisors at Exotix Partners LLP, a global finance and investment firm with offices in major global financial centres and significant imprints in Africa, said that UBA’s share price could rise to N9.95 per share over the next 12 months. Exotix coordinates its global operations through five major offices in London, New York, Lagos, Dubai and Nairobi.

    The Exotix report, signed off by Kato Mukuru and Ronak Ghadia, chartered financial analysts, had upgraded UBA’s ranking to buy, a favourable recommendation to investors.

    Analysts commended what they described as gradual improvement in the fundamentals of the bank noting that the bank’s management has substantially improved the group’s profit drivers, which has not been fully recognised.

    They noted increasing improvement in cost efficiency as the cost to income ratio improved from 89.2 per cent in 2011 to 67.4 per cent in2014, with a projection for further improvement to 57.3 per cent by 2019 on the back of continued moderate operating expenses growth.

    Analysts also pointed out that the bank has witnessed notable improvement in asset quality over the four-year period. Since 2011, UBA has averaged a cost of risk of 0.9 per cent as against peer average of 1.3 per cent while its non-performing loan ratio of 1.6 per cent was the lowest among Nigerian banks in 2014.

    “Relative to its peers, the bank’s loan portfolio has remained very diversified. In particular, as at 2014, exposure to the vulnerable oil and gas sector was 19 per cent as against sector average of 25.7 per cent and its foreign currency denominated loans were 31.1 per cent of total loans as against peer average of +40 per cent. Despite the tough operating environment, management remain confident of maintaining a cost of risk of 1.0 per cent and non-performing loan (NPL) ratio of 2.0 per cent. We remain conservative and assume a cost of risk of 1.5 per cent and NPL ratio of 3.5 per cent,” Exotix stated.

    Analysts also cited UBA’s growing non-funded income contribution with total non-interest income increasing by cumulative annual growth rate of 19.3 per cent over the past three years. This was partly driven by exceptional foreign exchange trading gains in 2014 as well as a 7.5 per cent cumulative increase in core fees and commission income.

    “We think the headline growth in fees and commissions is impressive given the regulatory pressures on this line item. UBA’s average non-interest income to total operating revenue of 41.5 per cent remains significantly above peer average of 34.3 per cent. We forecast non-interest income growth to moderate to 4.0 per cent over the next five years due to non-recurrence of the exceptional trading gain in 2014 and zero rating of commission on turnover (COT). Nonetheless, we forecast core fee and commission income growth to remain strong at 8.3 per cent due to some of the initiatives taken by the group,” analysts at Exotix noted.

    The report indicated that the bank could gradually overcome the major drag of its low margins as from this year. Analysts regarded low margins, which have averaged 4.4 per cent as against peer average of 6.3 per cent, as the biggest drag on UBA’s profitability. However, the group’s asset yields have improved from 6.9 per cent to 7.7 per cent and the continued low margins were therefore due to an increase in funding costs, which rose to 3.8 per cent as significant tightening of monetary policy weighed in on the industry. With the proportion of foreign exchange-based loans to total loans declining to 31 per cent in 2014 from 34.4 per cent in 2013, analysts believed that UBA could benefit from 20-basis points margin uplift in 2015 and gradually to 5.0 per cent by 2019 as regulatory pressures and funding costs decline.

    The board of UBA said the additional equity from the rights issue would support the bank’s capital base ahead of the full implementation of BASEL II, which requires higher capital buffer for banks, to accommodate credit, operational and market risks inherent in the business of financial intermediation.

    Group managing director, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza, said the new equity fund provides further leverage to exploit growth potential in its markets.

    “On behalf of the management of UBA, I appreciate the shareholders for their strong commitment towards the growth of our dear bank and for the unwavering confidence reposed in us in building a great Pan-African institution,” Oduoza said.

  • GTBank, UBA to raise more funds for Kenya subsidiaries

    GTBank, UBA to raise more funds for Kenya subsidiaries

    • GTBank CEO, Segun Agbaje
    • GTBank CEO, Segun Agbaje

    Guaranty Trust Bank Plc (GTBank) and United Bank for Africa Plc (UBA) are to raise more funds for their Kenya subsidiaries following the increase in banks’ minimum capital base.

    The government last weekend raised minimum capital requirements for banks by fivefold  to promote competition.

    Core capital for lenders will jump to 5 billion shillings ($52 million) by the end of 2018, from 1 billion shillings, Treasury Secretary Henry Rotich said in his yearly budget speech in the capital, Nairobi. He said the benchmark for insurance companies was also increased to 600 million shillings.

    But, GTBank and UBA will have to source for the funds in Kenya because of the Central Bank of Nigeria’s (CBN’s) policy that banks with foreign subsidiaries should utilise resources in their host-countries to boost their operations rather than use funds from home to do so.

    The CBN’s stand is that banks raise funds from the offshore capital market through private placements or public offerings. CBN’s advice followed its earlier directive stopping banks from using local resources to fund their offshore subsidiaries. It also stopped quarantee of deposits for foreign subsidiaries.

    CBN Director, Banking Supervi-sions, Agnes Martins advised that the banks could also pursue a merger or acquisition; or if external capital raisings fail, submit a strategy for exiting the relevant foreign jurisdictions to the regulator.

    The directive also bars Nigerian banks from guaranteeing the deposits of their foreign subsidiaries and mandates banks with foreign subsidiaries to submit plans showing that their subsidiaries are fully capitalised in line with Basel II and III accords.

    Capital increase in Kenya has been reoccurring. The Central Bank of Kenya (CBK) increased the minimum capital requirement in 2008 to Sh1 billion from Sh250 million, with banks given a four-year period to comply. The process was expected to see small lenders merge but most of them convinced their shareholders to inject additional capital while others invited strategic partners. A 12-fold increase in capital requirement in 2004 saw Nigerian banks shrink from 89 to 25. Banks are currently aggressively raising additional funds from shareholders and the debt market to comply with new capital adequacy ratios coming into effect at the end of the year.

    The CBK had last year, hinted at increasing the minimum capital requirement for banks in a move that could lock out small lenders and new entrants from the market.

    The banking regulator is concerned that low levels of capitalisation will lock Kenyan lenders out of financing large infrastructure projects being undertaken in the country.

    “The Sh1 billion minimum capital requirements may actually constrain financing potential of some large banks. The CBK may consider raising this minimum capital requirement to make the industry move to the level of Egypt, Angola, Nigeria and South Africa,” it said. Kenya banks are not allowed to lend more than 25 per cent of their core capital to a single borrower.

    ”This should help promote consolidation in the banking industry,” particularly among smaller lenders known as Tier 3 and Tier 4 banks, Francis Mwangi, head of research at Standard Investment Bank, said told Bloomberg.

    Kenya, a nation of 44 million people with a $55 billion economy, has 43 commercial lenders and a mortgage-finance company, according to the Central Bank of Kenya. About 70 per cent of banking business is done by eight companies and industry fragmentation is hindering the development of scale lenders need to offer more complex services, Kenya Commercial Bank Ltd. Chief Executive Officer Joshua Oigara said in August.

    The bottom 20 lenders in Kenya all have capital below 5 billion shillings, Martin Oduor-Otieno, a partner at Deloitte East Africa, said in an e-mailed note.

    Smaller banks also may be forced to consider mergers because the three-year timeframe imposed to increase core capital may be insufficient, Mwangi said. Those lenders already face competition from bigger banks in their traditional markets such as micro-lending and low-income retail customers, he said.

    “The Tier 3 and Tier 4 lenders won’t be able to grow their earnings as fast because of increased competition from the bigger banks,” Mwangi said.

    The increase in minimum core capital requirements is in line with the government’s development programme, known as Vision 2030, Rotich said.

    “Kenya needs to have strong, well-capitalised financial institutions, which are not only able to participate in financing the large projects envisaged in the vision, but that are also well capitalised to withstand financial shocks and crises,” Rotich said

    KCB, Kenya’s largest bank in asset base, has a core capital of Sh52 billion, capping its lending to a single entity at Sh13 billion. Most of the infrastructural projects being put up in Nairobi require huge funding. For instance, the Lamu coal plant is expected to use an estimated Sh177 billion of which Sh130 billion will be debt.

    CBK disclosed that two banks violated the minimum capital requirement last year underlining the challenges facing banks funding large projects. The capital requirements in South Africa is Sh9 billion, Nigeria (Sh8 billion), Egypt (Sh6.2 billion) and Angola at Sh2.2 billion. Eighteen banks in Kenya have a core capital of less than Sh2 billion. Analysts pointed out those large banks were in a strong position to comply with whichever extra amount that may be required but small lenders are likely to struggle.

    “The effect is dependent on the amount but I expect the key players will comply with it,” said Standard Investment Bank’s Francis Mwangi. Mr Mwangi said a regulation meant to push banks to finance infrastructure projects by raising capital may see the lenders used to micro-lending holding idle cash.

  • UBA launches summer campaign

    United Bank for Africa (UBA) Plc has launched its cards, summer campaign, with the theme #SummerCrush with UBA Cards.  The lender said in a statement that it understands the relevance of the summer season to Nigerians who use their cards abroad, online or in-store and have created a campaign about how the UBA Card can help its holders to achieve their desires this season and beyond.

    “Be it a vacation with the family or an item to purchase, there is a UBA Card story behind every memorable summer experience,” it said.

    UBA cards are accepted in over 200 countries and are protected with second to none technology to ensure the security of all cardholders. Cardholders are encouraged to share their summer desires on UBA’s social media pages to qualify for amazing prizes.

    To encourage card usage, UBA has introduced instant card issuance for international and domestic cards. UBA is the first bank to issue instant international cards in Nigeria. Customers can walk into UBA Business Offices and get their cards in less than five minutes.

  • UBA lists N30.5b bond on NSE, FMDQ

    UBA lists N30.5b bond on NSE, FMDQ

    United Bank for Africa (UBA) Plc yesterday listed its recent N30.5 billion bond issue on the Nigerian Stock Exchange and the FMDQ OTC Plc, a dual listing that should ensure that investors in the bond have multiple opportunities to trade on their investments. FMDQ is an over-the-counter (OTC) market for fixed-income and currency securities.

    The listing on the NSE provides opportunity for retail investors to take advantage of the fixed return on the investment grade notes through the primary market while the FMDQ will provide a secondary market platform for institutional and foreign investors to trade the UBA bond.  The UBA bond is the first corporate bond to be admitted on the FMDQ platform and the first of its kind on a fixed income OTC in Africa.

    UBA, in December 2014, successfully raised N30.5 billion Tier-II capital through the issuance of seven-year fixed rate unsecured notes, maturing in 2021.

    Group managing director, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza, noted that the listing of the bond on the FMDQ was another milestone for the bank pointing out that it had floated the first initial public offering on the NSE.

    “We were the first Nigerian bank to do an Initial Public Offering (IPO) on the Nigerian Stock Exchange (NSE) after successfully listing in 1971. We were also the first to issue Global Depository Receipts (GDR) in 1998. We are always willing to explore new frontiers in our quest to have an efficient market that meets our developmental needs,” Oduoza said.

    According to him, the banking group will utilize the proceeds of the bond issue for long term commercial and retail sector lending as well as the expansion of its delivery channels to provide efficient banking services to customers.

    He reiterated that the bank is committed to building a long term and sustainable business and assured that it will ensure proper utilization of the bond issue to grow its market share and profitability while ensuring a robust risk management framework and strong corporate governance

    Chief executive officer, FMDQ OTC, Mr. Bola Onadele, commended UBA for being a pioneer in the market and reiterated the FMDQ’s commitment to the development of the Nigerian financial markets, through its efficient platform for the registration, listing, quotation and valuation of bonds.

    He outlined that listing on FMDQ provides issuer with global visibility and transparency, improved secondary market liquidity, price formation and benchmark pricing thus resulting to a more globally competitive capital market.

    Group chief executive officer, United Capital Plc, Mrs. Oluwatoyin Sanni, said the UBA bond was the biggest and most successful bond issue in 2014 noting that the success recorded at a time of uncertainty in the capital market was largely due to the credibility and strength of the UBA brand.

     

  • UBA grows loans to N1.2tr

    The  United Bank for Africa  (UBA)  has recorded a  14 percent growth in its loan books to N1.12 trillion.

    The bank announced this as part of its December 2014 full year result at the weekend.

    This is the first time the lender’s loan book is exceeding N1 trillion.

    According to the lender, the loan growth is in line with management’s  target for the year. The result reflected in the low Non-Performing Loan Ratio of 1.55 per cent well below the Central Bank of Nigeria (CBN’s) recommended maximum of five per cent.

    Its Group Managing Director/Chief Executive Officer (CEO), Mr. Phillips Oduoza, said the lender expanded its loan books without compromising its focus on asset quality.

    The bank, he said, focuses its lending on emerging growth sectors such as agriculture, manufacturing, resource-based sectors such as oil, gas and mining, information communication technology (ICT), power and infrastructure.

    He said the bank’s high level liquidity and strong capital base make it the bank of choice for big-ticket transactions in the emerging African markets, where it continues to offer unique financial solutions to businesses and governments.

    Also, the bank’s Group Chief Financial Officer, Ugo Nwaghodoh, said the lender would continue to support Africa-focused businesses and governments, given its strong belief in the continent’s prospect.

    “We believe the opportunities in Africa far outweigh the risks, given our on-the-ground experience in these markets.  We, however, do not compromise our risk management criteria and selective approach to lending across all our target markets, as we focus on quality and profitable risk assets that fit into our sustainable growth principles and objectives,” he said.

    Its Group Chief Risk Officer,  Uche Ike said the growth in the bank’s loan books,  was in line with its moderate risk appetite in the year under review.

    He also said the bank was pleased with the quality of the risk assets created as reflected in the low 1.55 per cent NPL ratio and moderated 0.7 per cent cost of risk.

    “These measures of asset quality are evidence of our investment in risk management;  human capital and ERM tools. We will remain consistent in our responsible approach to lending, especially as we are conscious of macroeconomic headwinds in our core markets. We will continue to maintain a diversified portfolio, with strict concentration limits on obligors, sectors, market segments and markets. Moreso, we will be proactive than ever in our portfolio monitoring in the years ahead, as we are committed to being the industry benchmark on asset quality,” said Ike said.

     

  • Analysts laud UBA as earnings rise to N290b

    United Bank for Africa (UBA) Plc outperformed analysts’ expectations as it released its audited report and accounts for the year ended December 31, 2014, showing increase in gross earnings to N290.02 billion.

    Key extracts of the audited report and accounts of UBA for the year ended December 31, 2014 showed that gross earnings rose from N264.69 billion in 2013 to N290.02 billion in 2014. Interest income had grown from N185.7 billion to N196.68 billion while net interest income increased from N103.23 billion to N106.13 billion.

    Exotix Partners LLP, a global finance and investment firm with offices in major global financial centres and significant imprints in Africa, said UBA’s performance showed “positive underlying trends” and the “earnings better than expected”.

    Exotix coordinates its global operations through five major offices in London, New York, Lagos, Dubai and Nairobi. The Exotix report was signed off by Kato Mukuru and Ronak Ghadia, chartered financial analysts.

    The audited report showed that the banking group substantially consolidated its African operations and enhanced productivity across the group, which helped to cushion impacts of industry-wide regulatory headwinds.

    The bank’s total assets rose to N2.76 trillion in 2014 as against N2.64 trillion in 2013 while shareholders’ funds increased from N235.04 billion to N265.41 billion. The bottom-line performance was however muted by midline costs. Profit before tax stood at N56.2 billion in 2014 as against N56.06 billion in 2013. Profit after tax improved from N46.60 billion in 2013 to N47.91 billion. With this, earnings per share improved slightly from N1.52 in 2013 to N1.56 in 2014. Customer deposits remained stable at N2.17 trillion in 2014.  Buoyed by this stability, UBA expanded its support for businesses on the continent by increasing its loan book by 14 per cent to N1.072 trillion in 2014.

    Group Managing Director, United Bank for Africa (UBA) Mr. Phillips Oduoza said the bank remained focus on its assets quality and efficiency citing its low classified  assets.

    “We expanded our loan book without compromising our focus on asset quality. Notably, our non-performing loan ratio remains one of the best-in-class at 1.6 per cent, as we responsibly grew risk assets in line with our defined risk appetite and target markets,” Oduoza said.

    According to him, the bank was also able to grow shareholders’ fund significantly by 13 per cent to N265 billion in 2014 from N235 billion in 2013, with a capital adequacy ratio above regulatory requirement.

    He said the bank would leverage on its adequate capitalisation and liquidity to grow market share across target business lines.

    He noted that the proposed cash dividend of 10 kobo per share reflects the balance between giving short term return to investors and the commitment to create sustainable long term value to all shareholders.

    “In arriving at the proposed dividend, the board considered a number of factors including shareholders dividend expectation, capital requirements for growth opportunities, and increasing regulatory capital requirements under Basel II. The board decided in favor of relatively higher earnings retention to strengthen the capital base, in line with the strategic goal of increasing our share of the market across all our business segments. We remain committed to creating sustainable long term value to all shareholders,”  Oduoza said.

    Group chief financial officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh expressed optimism that the bank will continue to record a steady and sustained increase in its profitability by leveraging on low cost stable funds as well as rising opportunities in the bank’s target markets in Nigeria and across Africa.

    “The performance of our African business was boosted by increased cross selling of our products and a number of other strategic initiatives. As we gain critical mass in the African market, we look forward to increased earnings in line with the diversification of our business across Africa,” Nwaghodoh said.

    Analysts at Exotix noted that UBA’s strong volume growth in-non oil sectors pointing out that while net loans grew by 14.3 per cent to N1.05 trillion in 2014, UBA’s growth was driven mainly by the manufacturing and non-oil sectors, as against noted trend among other Nigerian banks.

    Analysts also cited strong net interest income growth as a positive factor in the report.

     

  • How to build sustainable wealth, by UBA chief

    How to build sustainable wealth, by UBA chief

    Group Managing Director and CEO of United Bank for Africa (UBA) Plc, Phillips Oduoza has said that people who go through life with a high level of financial literacy usually make good and informed choices that make them richer.

    The bank chief disclosed this yesterday while teaching students of Girls Secondary School, Amenyi Awka, as part of the celebration of financial literacy day organised annually by the Bankers Committee and the Central Bank of Nigeria (CBN).

    The event witnessed participation from over 200 students from seven different schools in Anambra State including Community Secondary School, Agulu, Ezi Awka Community Secondary School, Community Secondary School, Okpuno, Community Secondary School, Umuokpu and Capital City Secondary School, Awka.

    Oduoza noted that financially smart people make financially smart families, communities and country, which leads to a higher standard of living for everyone.

    He took the students through the basic concepts of making money, savings and investments while letting them know that their capacity to make informed financial decisions will make them better adults in future.

    The Principal of GSS Awka, Lady Winnie Ibezim,  thanked the bank for choosing the school to celebrate the financial literacy day event. She said the school readily accepted to host the programme because of her strong believes that the financial literacy education will turn the students into good financial managers.

    Senior Special Assistant, Finance, Mr. Tony Oli, who represented the Anambra State Governor Chief Willie Obiano said UBA’s decision to celebrate the financial literacy day in the state is highly appreciated and ties in with the governor’s efforts to promote education in the state.

  • UBA takes banking to Facebook

    United Bank for Africa (UBA) Plc has introduced an online banking solution called “U-Social”, which offers flexibility and convenience to customers who desire to do banking transactions on social media, using their Facebook account.

    The product, it said in a statement, is designed to promote financial inclusion and to make the bank’s services available to customers regardless of the time and their locations. U-Social comes as online-based application on Facebook, it is easy to download and immediately syncs with the user’s Facebook account. U-Social is also an easy-to-use and secure banking solution, which is accessible to all UBA customers who are on Facebook.

    With the product, users can also pay for all cable TV bills right on their Facebook page without having to disengage from any interesting conversation thread that is on-going.  It also gives users opportunity to UBA’s U-Social users can also buy airtime right from their Facebook page and have cheques confirmed, cancelled and initiate new transactions while logged into their Facebook account.

    “The beauty of U-social is that it has simplified banking and made it part of the social media space.” Yinka Adedeji, UBA’s Divisional Head, e-banking said. “With UBA’s U-Social, Facebook is not just where people connect with friends and family, it is also the place anyone can do his or her banking with ease” he explained.

    U-Social has added a new dimension to UBA’s social media banking space. The bank is also the only pan-African bank to have a twitter notification transaction alert for its customers.

    The bank, in 2014, introduced transaction alerts on twitter, which enabled customers to receive notifications of any transactions on their account as direct messages on their twitter handle. This is applicable to all of the bank’s customers in the 19 countries in which UBA has operations across Africa.