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Tag: UBA

  • UBA partners Vodacom on data

    UBA partners Vodacom on data

    United Bank for Africa (UBA) Plc and Vodacom are partnering on data and broadband communications. The business relationship, the bank said in a statement, is handled locally through Vodacom Business Nigeria.

    The firm, a wholly owned subsidiary of Vodacom, enables UBA to seamlessly interconnect business offices and ATMs and to generally deploy financial services across the Group.

    As a result of the scope and scale of the partnership, it explained, UBA has become a Vodafone Global Enterprise Customer, becoming the first financial institution of Nigerian origin to join the elite list of companies such as General Electric (GE), Apple and Microsoft.

    During the ceremony to formally present the certificate of recognition as a Vodafone Global Enterprise Customer to UBA, the Managing Director, Vodacom Business Nigeria, Guy Clarke, commended UBA for the leading role it is playing on the continents’ financial landscape.

    The Group Managing Director/CEO of UBA Plc, Mr. Phillips Oduoza said the UBA will leverage on this milestone recognition and its associated benefits, to significantly improve the efficiency of its operations and processes as well as optimize costs.

  • FBN Holdings, UBA, Flour Mills are the best stocks to buy, say analysts

    FBN Holdings, UBA, Flour Mills are the best stocks to buy, say analysts

    Investors seeking to more than double their money within the next 12 months should consider stakes in FBN Holdings Plc, United Bank for Africa (UBA) Plc and Flour Mills of Nigeria Plc, according to analysts at Afrinvest Securities.

    In the latest review of the Nigerian stock market, analysts at Afrinvest Securities indicated that while the equities market had started on a tumultuous note, there are significant buy opportunities in the stock market as several stocks have potential to make between double and three-digit percentage returns over the next 12 months.

    Analysts said FBN Holdings, UBA and Flour Mills have the greatest potential in terms of capital appreciation. FBN Holdings was estimated to have the possibility of appreciating by 177.5 per cent during the period. UBA also has potential upside value of 174.7 per cent while Flour Mills was expected to grow by as much as 171.9 per cent.

    According to analysts, FBN Holdings’ share price could rise to N22.17 over the next 12 months while UBA and Flour Mills could be trading at N10.41 and N96.20 respectively.

    FBN Holdings opened this week at N7.99 while UBA and Flour Mills started trading at N3.79 and N35.38 respectively.

    Other stocks with potential for three-digit growth included FCMB Group Plc, with possible appreciation of 162.6 per cent, Diamond Bank, 133.1 per cent; Access Bank, 124.8 per cent; Skye Bank, 120.8 per cent; Aiico Insurance, 117.9 per cent and Dangote Sugar Refinery, which has upside potential of 109.6 per cent.

    Investors in Nigerian equities started this year with the unnerving hangover of the previous year as quoted equities lost about N1.5 trillion in the first week of the New Year. With consecutive decline all through the five trading sessions, last week saw most equities dropping to their lowest levels.

    Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) closed last week at a low of N9.980 trillion as against its opening value of N11.478 trillion, representing a loss of N1.498 trillion. The benchmark index at the NSE, the All Share Index (ASI)- a value-based index that tracks prices of all quoted equities and also doubles as country index for Nigeria, indicated a week-on-week average decline of 13.05 per cent. The ASI dropped from its opening index of 34,657.15 points to close at 30,143.02 points.

    The performance of quoted equities last week raised the spectre of the previous year. Nigerian equities ranked among the worst-performing stocks globally in 2014 with average full-year decline of 16.14 per cent. Aggregate market value of all quoted equities closed 2014 at N13.226 trillion as against its opening value of N11.477 trillion for the year, indicating a loss of N1.75 trillion during the year.

    Analysts at Afrinvest attributed the bearish market situation to weak macroeconomic fundamentals pointing out that the steep decline in crude oil price and increasing Nigeria’s vulnerability were making investors to be anxious.

    Afrinvest’s stock recommendation may further encourage investors’ participation in the ongoing supplementary issue by UBA. UBA is raising funds from existing shareholders through a rights issue of one for 10 ordinary shares held as at October 15, 2014. The offer price is N4. Application for the rights issue, which opened on December 29, 2014, will close on February 5, 2015.

    UBA plans to use the net proceeds of the N13b rights issue to strengthen its business units across Africa.

    UBA had in 2013 launched a new business development plan aimed at consolidating the bank’s position as a leading pan-African global financial services group. The three-year business development plan codenamed Project Alpha was designed as the group’s next focus of strategic transformation and it contained key transformation initiatives.

    Group managing director, United Bank for Africa (UBA), Mr. Phillips Oduoza, said the new business plan was designed to consolidate the group’s strategic positioning and fully capture the opportunities from Africa’s economic renaissance.

    According to him, Project Alpha is focused on leveraging all aspects of the group’s footprint, product offerings and operational capability, allowing a commitment to customer service transformation, market share growth, the implementation of key e-banking initiatives across all segments, the growth of corporate and trade finance capabilities.

    He outlined that a critical aspect of the Project Alpha initiative is the focus on UBA Africa, which is projected to contribute about 50 per cent to the group by 2016.

     

  • Why we are raising new equity funds, by UBA

    United Bank for Africa (UBA) Plc would use the net proceeds of its ongoing rights issue to finance its business development plan aimed at further entrenching the bank as the leading bank in Africa.

    UBA is raising funds from existing shareholders through a rights issue of one for 10 ordinary shares held as at October 15, 2014. The offer price is N4, a discount of 7.0 per cent to the bank’s opening share price of N4.30 at the Nigerian Stock Exchange (NSE) on Monday. Application for the rights issue, which opened on December 29, 2014, will close on February 5, 2015.

    Regulatory filing on the rights issue indicated that the bank would use the net proceeds of the N13b rights issue to strengthen its business units across Africa.

    UBA had in 2013 launched a new business development plan aimed at consolidating the bank’s position as a leading pan-African global financial services group. The three-year business development plan codenamed Project Alpha was designed as the group’s next focus of strategic transformation and it contained key transformation initiatives.

    Group managing director, United Bank for Africa (UBA), Mr. Phillips Oduoza, said the new business plan was designed to consolidate the group’s strategic positioning and fully capture the opportunities from Africa’s economic renaissance.

    According to him, Project Alpha is focused on leveraging all aspects of the group’s footprint, product offerings and operational capability, allowing a commitment to customer service transformation, market share growth, the implementation of key e-banking initiatives across all segments, the growth of corporate and trade finance capabilities.

    He outlined that a critical aspect of the Project Alpha initiative is the focus on UBA Africa, which is projected to contribute about 50 per cent to the group by 2016.

    He pointed out that Project Alpha will allow the bank to build on the existing strengths of its franchise as well as continue to reinvent ourselves, ensuring it captures and delivers the maximum of value for all stakeholders.

    UBA has shown resilience in spite of the regulatory headwinds in the banking sector. It grew its top-line by 12 per cent to about N211 billion in third quarter 2014 as the bank’s core banking operations further stimulated overall performance.

    Key extracts of the interim report and accounts of the bank for the nine-month period ended September 30, 2014 showed that interest income grew by 12.5 per cent, nudging the bank’s gross earnings by 12 per cent to N210.7 billion. The bank had recorded gross earnings of N188.02 billion in the comparable period ended September 2013.

    Interest income had risen from N132.76 billion recorded in third quarter 2013 to N149.41 billion in 2014. Net interest income also rose from N78.16 billion to N81.96 billion. Operating income increased to N138.39 billion in 2014 as against N129.87 billion.

    Oduoza said the growth in gross earnings reflected the increasing business activity across the bank’s operations.

    According to him, the bank has been supporting businesses and institutions with the finance they need to exploit emerging opportunities on the continent.

    He noted that the operating income of N138 billion for the nine-month period to 30 September, 2014 represented a 6.6 per cent increase over the corresponding period of last year, showing the strong underlying operating efficiency of UBA business globally, and the capacity of the business to remain profitable.   The bank made a profit before tax of N42.54 billion and a profit after tax of N33.6 billion for the period.

    According to him, as a proactive bank, UBA has adequately resourced and re- aligned its structures to optimise emerging opportunities arising across all the regional blocs, while also adopting appropriate risk management frameworks to mitigate likely exposures in its operations both within the local and global environment.

    “We will adopt a very aggressive approach to market and ensure focused implementation of our strategic priorities, to drive achievement of our corporate targets,” Oduoza added.

  • Analysts pick UBA, Transcorp, Oando, 16 others for high returns

    Investors seeking high-return stocks should consider United Bank for Africa (UBA), Transnational Corporation of Nigeria (Transcorp), Oando Plc, Cadbury Nigeria and 16 other stocks with potential to deliver double-digit capital appreciation.

    Analysts at BGL Plc said the downtrend in 2014 has opened attractive opportunities in the Nigerian stock market noting that Nigerian equities are currently trading at attractive compare to regional peer and other emerging markets.

    According to analysts, while Nigeria’s market price-earnings and price-to-book ratios compare favourably with other emerging markets like Brazil, Russia, India and China (BRIC) and its regional peer South Africa, price earnings ratio of most sectors on the Nigerian Stock Exchange (NSE) are also lower than those of its peers; indicating significant buy opportunities.

    Analysts at BGL outlined that banking, consumer goods, conglomerates, health care and building materials sectors present very attractive valuation at the moment.

    A list of stocks recommended by the analysts showed that Transcorp has the highest upside potential with a possible return of 140.8 per cent. Analysts said Transcorp’s share price, which opened yesterday at N3.78 per share, could rise to N8.26 per share. They noted that UBA’s share price, which opened yesterday at N4.94 per share, to rise as high as N10.51 per share. Oando has an upside potential of about 93 per cent with a possible target price of N37.95. Cadbury Nigeria is estimated to have possible upside potential of about 69 per cent with a target price of N64.81.

    Other stocks with strong return outlook included FBN Holdings, 49.7 per cent; Access Bank, 48.3 per cent; Diamond Bank, 51.7 per cent; FCMB Group, 38.3 per cent; Fidelity Bank, 56.2 per cent; Skye Bank, 62.7 per cent; Dangote Cement, 48 per cent; Lafarge Africa, 64.1 per cent; Nestle Nigeria, 40.3 per cent; PZ Cussons Nigeria, 76.8 per cent; Dangote Sugar Refinery, 71.9 per cent; Honeywell Flour Mills, 77.9 per cent and UAC of Nigeria, with potential return of 64 per cent.

    Others included Zenith Bank, with 19.9 per cent; Nigerian Breweries, 19.2 per cent, Total Nigeria, 42.8 per cent and Flour Mills of Nigeria, with potential capital appreciation of about 22.3 per cent.

    Analysts noted that the uncertainty surrounding the financial system is clearing out as the major reforms in the banking sector have been completed and the need to resume financial intermediation by banks has become glaring.

    According to analysts, the uncertainty in the banking sector led to cautious approach to investing activities; hence the below market performance of the sector.

    “However, the expected increase in liquidity from election spending may temper the effect of the tight monetary environment for the banks and boost their investing activities and profitability. It may also lead to the narrowing of yields on fixed income instruments to the benefit of the equity market. The channelling of liquidity to productive sector would help the market while stronger earnings from increased financial intermediation by banks would also boost investors’ sentiment for banking stocks,” the analysts’ report stated.

    BGL noted that due to identified infrastructure gaps in terms of housing, transportation and power, there would be more focus on building and construction going forward, which would impact positively on building and construction stocks.

    According to analysts, since the provision of the infrastructure needs is largely to be private sector driven, there would be better efficiency and transparency in the handling of the projects with positive implication for the capital market.

    Analysts pointed out that the merger between Lafarge Africa and Ashaka Cement Plc in order to achieve cost reductions through scale and removal of duplicated duties has positive potential effect on the sector while the newly launched Mortgage Refinance Company (MRC) is expected to boost housing development over time; leading to increased demand for building materials.

    “Consumer goods stocks are defensive stocks. The capacity to generate cashflow all year round portends huge value for these companies. In addition the ban on the importation of some items and the increase in tariff on some will create a favourable competitive environment for the players in the sector. The ban on importation of refined cube sugar is expected to generate increased business and volume sugar manufacturers; hence our optimism on their stock performance. The return to profitability of some consumer goods companies after years of negative performance signal that they have started benefitting from the restructuring embarked upon while the consistent positive performance of the industry bellwethers offers an attraction to the sector’s stocks,” the report stated.

    Analysts pointed out that although the unwieldy nature of conglomerate companies usually makes them difficult to analyse and understand, several of them are known to hide inherent values.

    They noted that in addition to risk reduction through diversification, some of the conglomerates have invested in highly profitable and cash generating business with strong upside potential, pointing out that conglomerate companies with investment in defensive sectors herald very attractive returns for investors.

    “We expect that the conclusion of the Petroleum Industry Bill to unleash significant investment in the sector, particularly unlocking value for the downstream petroleum sector as well as the upstream sector. The increased foray of indigenous oil and gas companies into the upstream and midstream oil and gas sectors and the expansion into power generation and distribution offer significant upside for the stocks of quoted oil and gas companies in Nigeria,” the analysts’ report stated.

    According to analysts, companies with operations in the upstream, mid-stream and downstream sectors like Oando Plc portends great inherent value especially with the purchase of the assets of Conoco Phillips Nigeria Limited. Most of the international petroleum marketing companies have also been consistent in their performance with attractive returns to investors.

  • UBA customers get Twitter alerts

    Customers of United Bank for Africa (UBA) Plc can now receive transaction alerts on their twitter handle as direct messages.

    It is an innovative first from the pan-African bank and currently the only bank in Africa to offer this service. “What we have done is take social media banking to a new level. Twitter is increasingly becoming a popular means of communication especially among the young adults. As a highly innovative bank, we are giving the Millennials, who are increasingly banking with us an option to get transaction alerts on their preferred platform” said Rasheed Adegoke, UBA’s Director, Information Technology.

    Before now customers can only receive transaction alerts as text messages on their mobile phones and as e-mails. The UBA Twitter Notification Service will not however, replace the current SMS alerts system in place for all of the bank’s customers, but will complement it for added convenience for all those who subscribe to the service.

    UBA customers seeking to receive twitter powered transaction alerts through their twitter account should visit the UBA Group website or the UBA twitter page to register.

    On the UBA Group website, customers will be requested to click on the Twitter notification service page, and enter their account number then  click on submit. Follow the displayed instructions to log into their personal account and enable access. Once this process is completed, the customer will start receiving transaction alerts securely.

    The alerts will only be seen by the receiver, since it goes into his or her direct message box, just like an SMS message going to a phone. The introduction of this service reinforces UBA’s growing presence and engagement with its numerous customers on social media.  UBA has been acknowledged as one of Nigeria’s leading banks in the social media space.

    In February 2014, a social media report by Alder Consulting ranked the bank among the top three, in effective use of social media in Nigeria. UBA is active on Twitter, Facebook, Youtube, Instagram and Google plus and runs a corporate blog. With a customer base in excess of seven million, UBA has invested heavily in building a robust and secure e-Banking platform that supports its e-banking operations globally through strategic partnerships with various local and international organisations.

  • UBA Capital changes name to United Capital

    UBA Capital changes name to United Capital

    •NSE reviews market indices amidst decline

    Shareholders of UBA Capital Plc yesterday approve the change in the name of the company to United Capital Plc, paving the way for the investment banking and capital markets group to conclude the process of name change.

    At an extraordinary general meeting held in Lagos, directors and shareholders of the company approved the change in the name.

    Speaking at the meeting, chairman, UBA Capital, Mr. Chika Mordi said UBA Capital has a proud heritage as one of Africa’s leading financial services companies.

    According to him, the group would build on its heritage and use its new brand identity as a catalyst to create greater values.

    “The new name reflects our shared determination to transform the continent’s financial sector, delivering exceptional value to both our shareholders and customers,” Mordi said.

    UBA Capital was until recently a member of the United Bank for Africa (UBA) Group. It was spun off and its shares distributed to existing shareholders of UBA in compliance with the new banking regime that requires banks to form holding company structure to hold non-core commercial banking subsidiaries or divest from such businesses. It was subsequently listed on the Nigerian Stock Exchange (NSE).

    UBA Capital offers four services including investment banking, asset management, trusteeship and securities. In 2013, it was named the Best African Investment Bank at the Africa Investor Awards.

    Meanwhile, the Nigerian Stock Exchange (NSE) is rounding off year-end review of its key group and sectoral indices. These included the NSE 30 Index, NSE 50 Index and the five sectoral indices- the NSE Banking Index, the NSE Consumer Goods Index, the NSE Oil & Gas Index, NSE Industrial Goods Index and the NSE Insurance Index. The composition of these indices after the review will be effective on January 1, 2015. The review will witness the entry of some major companies and exit of others.

    Major highlights of the review included the replacement of five companies in the NSE 30 Index. Fidelity Bank, FCMB Group, Total Nigeria Plc, GlaxoSmithKline Consumer Nigeria and Ashaka Cement Plc are being replaced by Seven-Up Bottling Company, Seplat Petroleum Development Company, Unity Bank, Sterling Bank and Mobil Oil Nigeria Plc. The NSE 30 Index tracks the 30 most capitalised companies on the NSE and largely controls the overall market situation.

    The NSE-30, NSE-50 and NSE Industrial Indices are modified market capitalization index with the numbers of included stocks fixed at 30, 50 and 10, respectively. The numbers of included stocks in the NSE-Consumer Goods, Banking, Insurance and Oil/Gas Indices are 15, 10, 15 and 7, respectively.

  • Poor writing motivated UBA essay competition

    Poor writing skills of young ones couple with social media shortcuts culture influenced the establishment of the UBA Foundation National Essay Competition, the bank’s Deputy Managing Director/CEO, Mr Kennedy Uzoka, has said.

    Uzoka, who spoke at the grand finale/award presentation, which held at the UBA House, Marina, Lagos, said though Information Communication Technology (ICT) has had positive effects, poor writing was part of its failings.

    “This is a programme we started in 2011 because we believe in giving back and because we have seen key areas of failing in writing.  And this is because of the advancement in technology.  Though good, it has its bad sides,” he said.

    Rather than write good morning, Uzoka said, social media users write ‘ggmr’, or ‘lol’ to mean laugh out loud; a practice, which he said has encroached on good and proper writing skills.

    He said youths, nowadays, fail to write using the proper format. He gave an example of his daughter, who he said emailed him recently without proper introduction and conclusion.

    “While we have embraced this way of writing, it does not make way for writing properly and these children will be tested in proper English,” he said.

    At the event, 12 senior secondary school pupils smiled home with cash and gift prizes.

    A 15-year-old Fehintola Fabelurin of Maverick College, Ibadan, Oyo State, got N1,000,000 scholarship to study in any African university.

    She was followed by Obi Daniel of St Thomas Secondary School, Kano, Kano State, who won N750,000 scholarship, and Sunday Ikemsinachi of Dority International Secondary School, Aba, Abia State, who got N500,000.

    The three winners emerged after 12 finalists were invited from a total of nearly 2000 entries to write a final essay competition at the UBA Head Office in Lagos, where three emerged overall winners. The 12 finalists also got laptops and certificates.

    The bank’s Deputy Managing Director (Domestic Banking), Mr Appolos Ikpobe, urged the finalists to start thinking of their unique contributions to human development.

    Ijeoma Aso, MD/CEO UBA Foundation, praised the quality of this year’s entries.

    “You should be happy you made it to this point because it shows that the quality of your entry was good. I will encourage all those who do not win this year to try again next year. It shows persistence when you do not give up,” she said.

     

  • 12 for UBA essay final

    Twelve senior secondary school pupils have been shortlisted for the final round of the UBA Foundation’s National Essay Competition.

    The entries for the essay titled: “Is Social Media a safe place to make friends?” were evaluated by four professors of English Language from different Nigerian universities.

    The 12 highest scoring candidates selected are: Orowale Promise of Baptist High School, Akwanga, Nasarawa State; Abidoye Adeola, Breakthrough Academy, Lagos;  Durueke Clinton, International School, University of Lagos, Lagos; Sunday Kenneth, Dority International Secondary School, Aba, Abia State; and Obi Daniel Chukwudu of  St. Thomas Secondary School, Kano, Kano State.

    Others are:  Ogbonnaya Lydia, St. Louis Catholic Girls Secondary School, Ondo; Khadijah Akinleye, Crescent College, Lagos; Orji Ubachukwu, Dority International Secondary School, Aba; Doko Timilehin, CMS Grammar School, Lagos; Fabelurin Fehintoluwa, Maverick College, Ibadan, Oyo State; Zubie-Okolo Ganiru, Federal Government College, Enugu, Enugu State; and George Ekong, Nobles International School, Uyo, Akwa-Ibom State.

    The competition, which started in 2011, is a follow up on the Foundation’s Read Africa Initiative and aims at providing a competitive platform to develop the intellectual and writing abilities of senior secondary school students in Nigeria.

    Ijeoma Aso, MD/CEO UBA Foundation praised the quality of the over 2,000 entries received for this year’s competition.

    “We noticed significant improvement in the quality of entries in this year’s competition. We commend all students who took time to send in an entry.”

     

     

  • UBA Capital chief wants more pension funds in equities

    Increase in the rate of pension funds’ investments in the Nigerian stock market would create a win-win situation that would enhance long-term returns to pension funds and assist the development of the capital market.

    Group chief executive officer, UBA Capital, Mrs. Oluwatoyin Sanni, who stated this at the Capital Market Correspondent Association of Nigeria (CAMCAN) workshop in Lagos, noted that Pension Funds Administrators (PFAs) currently have limited exposure to equity market, which limit their long-term potential return and market growth.

    According to her, increased investments in the equity market by the PFAs will increase long term returns to contributors and encourage the Initial Public Offering (IPO) market as there will be an increased absorption capacity and improved liquidity.

    She said that low financial literacy and low financial inclusion are hindrances to the growth of the capital market noting that lack of diversification options has continued to militate against the market as few products are available and financial sector still dominates the trading activities also affects the growth of the market.

    She pointed out that the upcoming general elections and decline in oil price were responsible for the downtrend at the stock market as some international and local investors have withdrawn their investments in anticipation of the outcome of the election.”

    Sanni noted that the drop in oil price and perceived policy inadequacies also affected the international investors’ confidence adding that relatively low daily traded values and low turnover velocity are still a hindrance to large investors.

    She added that the Nigerian economy is greatly exposed to geopolitical, geo- economic and currency risk which is forcing foreigners to withdraw from investing, stressing that the insecurity in the country is also a challenge to the Nigerian capital market recovery.

    She outlined that there must be a synergy among the regulators in the financial sector in order to ensure seamless growth of the financial markets.

    According to her, there must be a synergy among the different arms of financial markets and industry regulators to avoid another crash of the nation’s capital market.

    She outlined that the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange(NSE), the Central Bank of Nigeria (CBN)and Pension Commission(PenCom) should work together for market development and sustainability.

    She pointed out that the regulatory synergy was imperative for sustained market development and prevention of regulatory lapses experienced in the past.

     

  • UBA announces incentives for customers

    UBA announces incentives for customers

    United Bank for Africa (UBA) Plc has announced incentives to encourage the bank’s customers to use electronic channels for their transactions in December. Tagged UBA Cashless December, the initiative is aimed at encouraging non-cash transactions, in line with the CBN’s cashlite agenda.

    From December 1 to December 31 2014, the bank’s customers who do transactions on U-Mobile, U-Direct or pay with their Cards on the web and POS stand a chance to win great prizes. In addition, Cardholders who use the bank’s ATM value-added services such as bill payment, airtime top up and funds transfer are eligible.

    Prizes to be won include iPhone 6, airtime for phones, movie tickets, and shopping vouchers. These incentives are for new and existing UBA Customers.

    “Going cashless during this festive period is not only convenient, but it also enhances your personal safety and protects your hard earned money” explained Dr. Yinka Adedeji, the Bank’s Divisional Head of e-Banking. Dr. Adedeji explained that “going cashless means customers abstaining from all forms of cash transactions and embracing e-Banking.”