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Tag: UBA

  • UBA joins Convention on Business Integrity

    UBA joins Convention on Business Integrity

    United Bank for Africa (UBA) Plc was at the weekend admitted as member of the Convention on Business Integrity (CBI).

    Speaking at the signing in Lagos, the bank’s Group Managing Director/Chief Executive Officer, Phillips Oduoza said the exercise remains a significant milestone in the lender’s history.

    He said the bank aligned with the tenets of the convention because they reflect the integral part of its values and vision.

    “We are building customers’ confidence and passion to carry out our business with highest level of integrity. We align with the convention’s principles of promoting integrity and integrity in business,” he said. Oduoza said the CBI codes define a minimum standard for business integrity in the country.

    Continuing, he said integrity is one of the bank’s core values adding that the CBI’s code underscores its unwavering commitment to carrying out its business with the highest sense of integrity and responsibility.

    CBI’s Executive Director, Soji Apampa said UBA has by this venture, shown that it is committed to higher business standards than what the regulators are asking for. He said the CBI was established with the aim of promoting ethical business practices, transparency and fair competition in the private and public sectors. Signatories to the Convention undertake to observe the values of the CBI, both within their own organisations and in their dealings with customers and partners.

  • Analysts predict 47% return for UBA

    Analysts predict 47% return for UBA

    Analysts at Primera Africa Securities Limited have predicted that market consideration of United Bank for Africa (UBA) Plc could still rise by 38.5 per cent in the period ahead, highlighting the intrinsic potential of the banking stock.

    UBA recorded the second highest capital gain in the financial services sector in 2013 with a full-year return of 95.2 per cent.

    Analysts at Primera Africa in an equity research on UBA released on Monday indicated that the bank’s share price still has an upside potential of 38.5 per cent on this week’s opening price of N8.16 per share.

    According to analysts, UBA’s share price could rise to N11.30 per share, indicating possibility of a new high for 2014. UBA had traded between a low and a high of N4.56 and N9.60 in 2013.

    “We still see more room for price appreciation in 2014. While regulatory headwinds still persist, we see UBA successfully navigating through to drive earnings growth,” Primera Securities stated.

    Primera Africa also indicated estimated dividend yield of 8.0 per cent for UBA at current market price, bringing total return to about 46.5 per cent.

    Analysts noted that while investors are currently going short on banking stocks and the overall market in reaction to the increase in Cash Reserve Ratio (CRR) and the United States (US) Fed commencement of tapering, UBA’s current market position presents a good buy opportunity and a chance for investors to benefit from the upside.

    “Our positive outlook is largely driven by sustained risk asset creation, re-pricing of interest earning assets, increased monetization of ex-Nigeria operations across 18 African countries, and continued mobilization of cheap deposits. In reaction to the increased CRR and US Fed tapering, yields on fixed government securities are expected to rise as liquidity tightens and some foreign investors exit from our bond market. We see UBA leveraging its strong treasury franchise to exploit the yield curve and offset the impact of CRR,” analysts stated.

    The equity research report pointed out that UBA will continue to grow its loan book into emerging sectors of the economy including power, oil and gas, agriculture, and telecommunications while it also has potential to increasingly diversify its loan book into high-yield lending opportunities in the mid-tier commercial space.

    Referencing UBA’s pan-African network, analysts said they expected increased contributions from non-Nigerian operations noting that UBA has moved from expansion to consolidation of the asset base to drive profitability.

    “UBA’s extensive pan-Africa footprint outside of Nigeria gives investors entry into the growth story of the continent, particularly in key emerging markets such as Kenya, Ghana, Cote D’Ivoire, and Liberia. With over 100 business offices across the region, the bank’s distribution platform is set up to capture intra-regional trade and transactional flows which should aid non-interest income growth. Also, the bank’s strong treasury and corporate banking platform has continued to monetize its presence and taken advantage of the high yield environment in its respective markets to drive interest income growth,” analysts noted.

    On the liability side, analysts indicated that there could be continued mobilization of cheap local currency denominated deposits and pay down of foreign DFI debt, which will drive down cost of funds while asset quality and controlled operating expenses could further aid profitability and return on equity.

    According to Primera Africa, UBA holds attractive opportunity for attractive dividend yield of 8.0 per cent at current share price as the bank continue to leverage its balance sheet and sweat its assets to drive earnings growth.

    Analysts noted that investors have yet to fully appreciate the bank’s recovery from its non-performing loan-related losses in 2010 and 2011 and its increasingly strong fundamentals since then.

    “We expect UBA to grow revenue and earnings off the back of its renewed focus on growing its loan book, re-pricing assets to improve margins, maintain asset quality, and control cost,” analysts stated.

     

  • UBA Capital raises N1.8b from shareholders

    UBA Capital raises N1.8b from shareholders

    UBA Capital Plc has secured N1.8 billion new equity funds from its shareholders as the investment banking company seeks to consolidate its performance.

    Regulatory filing at the Nigerian Stock Exchange (NSE) indicated that the company has successfully completed a rights issue of two billion ordinary shares of 50 kobo each at 90 kobo per share. The new shares were listed on the NSE last week, marking the conclusion of the rights issue.

    UBA Capital appointed a new chairman of Board of Directors and managing director with the promise to build on its core expertise to consolidate its impressive performance.

    Mr. Chika Mordi and Mrs Oluwatoyin Sanni were appointed Chairman and Managing Director.

    The new chairman said UBA Capital has a bright future given the strength of its portfolio, network and expertise.

    “UBA Capital’s subsidiaries have delivered significant value to our stakeholders, and this is evident in the strength of our portfolio, extensive network, and industry-recognised efficiency. We predict a bright future for the company as it leverages remarkable achievements made over the last year,” Mordi said in his first statement following the appointment.

    Sanni said she was eager to lead a team of skilled, driven professionals into the next phase of UBA Capital’s development.

    According to her, UBA Capital has had a solid performance across all its subsidiaries, and its trustees business is clearly a dominant player in the market.

    She noted that with other businesses of the company making solid progress towards market leadership, UBA Capital is ready to establish itself as a leading African financial services and investment banking group.

    UBA Capital had played a leading advisory and capital-raising role in the Nigerian power sector and other investment banking transactions in 2013. The company’s share price has appreciated 78 per cent since it was listed on the Nigerian Stock Exchange on January 11, 2013, closing the year at N2.07 from N1.16. In October 2013, UBA Capital raised additional share capital through a rights issue of one billion shares, an offer that was oversubscribed by 75 per cent.

    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 NSE.

    Interim reports and accounts of UBA Capital for the period ended September 30, 2013 showed impressive growths in the top-line and bottom-line. Gross earnings quadrupled from N795.37 million in third quarter 2012 to N3.23 billion in 2013. Profit before tax also followed the trend at N2.16 billion as against N494.86 million recorded in comparable period of 2012. Profit after tax stood at N1.72 billion compared with N796.84 million recorded in previous year.

  • UBA donates incubators to Nigeria’s oldest public hospital

    UBA donates incubators to Nigeria’s oldest public hospital

    United Bank for Africa (UBA) Plc, in keeping with its promise of reducing infant mortality, through its corporate social responsibility arm, UBA Foundation, penultimate Monday presented a set of incubators to the University of Calabar Teaching Hospital (UCTH), Calabar; the first public hospital in Nigeria established since 1897.

    The Chief Medical Director, UCTH, Dr. Thomas U. Agan, while receiving the incubators on behalf of the management of the hospital, thanked the bank for the kind gesture, describing it as a laudable act of goodwill.

    “This will go a long way in saving the lives of our infants as needless deaths will be eliminated,” he said.

    He encouraged other financial institutions and corporate bodies to emulate UBA Foundation by supporting the health sector in Nigeria.

    UBA Plc Regional Bank Head, Cross River Bank, Uduak Afangide, in his brief remarks said that UBA has maintained a healthy business relationship with UCTH. He described the donation of the incubators as the bank’s contribution towards the development of the iconic hospital especially in the area of child care.

    Also speaking at the ceremony, MD/CEO, UBA Foundation, Ijeoma Aso, stated that the incubator donation is one of the several initiatives taken by the Foundation to support health care delivery across the country.

    “There are other medical equipment that could help save the lives of children. We will explore further avenues to do more,” she said.

    Several hospitals have already benefited from the UBA Foundation infant mortality reduction drive through its incubator donation gesture. Hospitals that have benefited include: University of Nigeria Teaching Hospital, Enugu (UNTH), the Aminu Kano University Teaching Hospital, Kano (AKTH), University of Benin Teaching Hospital, Benin (UBTH), Ahmadu Bello University Teaching Hospital, Zaria (ABUTH), University of Port Harcourt Teaching Hospital, Port Harcourt (UPTH), and College of Medicine, Ibadan.

    The incubator donation to hospitals is an on-going project of the Foundation that will benefit more hospitals across the country.

    The UBA Foundation has established a strong track record and commitment to support the health sector. Previous interventions by Foundation in Nigeria’s health sector cuts across several areas including refurbishment of LUTH’s Labour Ward exterior, re-equipping of the University of Benin Teaching Hospital’s Cardiac Centre, re-equipping of the University of Benin Teaching Hospital’s Cardiac Centre, donation of Dialysis Machines to LUTH, and Prostate Cancer Awareness Initiative.

    As the Corporate Social Responsibility arm of the UBA Group, UBA Foundation is committed to the socio-economic development of the society, focusing on development in the areas of environment, education, economic empowerment and special projects

     

  • Foundation donates incubators to UCTH

    As part of its contribution to check incidences of infant mortality, the United Bank for Africa (UBA) Foundation has donated two infant incubators to the University of Calabar Teaching Hospital (UCTH).

    Managing Director/Chief Executive Officer of the foundation, Ijeoma Aso, said the gesture was part of their our strategy to give back to the community.

    She said, “We found out that teaching hospitals in the country are in need of incubators. UCTH Is one of 15 teaching hospitals we have selected to provide two incubators each to.

    “The idea is to help so that children of less privileged people can also have access to the equipment to save their lives.

    “We are also into education, environment, economic empowerment and special projects. The donation of these incubators falls into special projects.”

    Chief Medical Director, Dr Thomas Agan, who was elated by the donation, said the incubators were going to save lots of lives.

    He said, “To say I am elated is an understatement. I am not only happy that it is coming at this time but I extremely excited because this is something that will save so many lives. With this equipment alone you realize that so many lives will be saved. So I want to use this opportunity UBA foundation and the UBA in general for out of goodwill. I cannot quantify my joy.

    “There are so many babies that are delivered with challenges and majority of them need to be placed on incubator. If there is no incubator to manage a premature baby then certainly you are bound to lose that baby, so the incubators are badly needed. There are a lot of reasons why women deliver prematurely and when the babies are delivered they will have very bad post natal challenges. So we need to get special equipment like this that will maintain and sustain them.

     

  • JP Morgan ranks UBA, GTBank as most attractive banking stocks

    Analysts at the global investment banking giant, JP Morgan, have identified Guaranty Trust Bank (GTBank) and United Bank for Africa (UBA) Plc as the two most attractive banking stocks as banks and investment pundits continue to analyse the potential impact of the recent increase in cash reserve ratio (CRR) on public deposits on banks.

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) had last week increased the CRR on public deposits from 50 per cent to 75 per cent. All analysts agreed the increase will momentarily impact negatively on banks’ profits but there were difference of opinions on the impact on each bank and the medium-to-long-term impact on the industry.

    In its equity research for Central and Eastern Europe, Middle East and Africa (CEEMEA) titled Nigerian Banks: thoughts around policy action on the CRR; the United States of America (USA)-based investment powerhouse stated that GTBank and UBA are under the current industry scenario the “favored banking shares” while Zenith Bank is the “least preferred”.

    JP Morgan’s analyses and conclusions were based on the potential earnings, return on equity, dividend yield, current market consideration and balance sheet items.

    For the system overall, the CRR action on public sector deposits mops up N1trn of liquidity (on N4.02trillion of public sector deposits as of November 13). As per our economist, the reduction in liquidity engineered by this CRR hike is likely to be supportive of the currency, especially as we move closer to a period of uncertainty caused by the expected change in CBN leadership in June and QE tapering. Our economist expects foreign divestments from Nigerian fixed income assets likely to pick up pace over the next couple of months that could put some pressure on the NGN, notwithstanding the fact that about half the holdings may be of GBI-EM benchmarked investors and gross FX reserves still provide a significant buffer ($43.3billion/10 months of import cover).

    Such an exit would test the CBN’s commitment to the currency, with pressure on NGN possibly rising more in 1H’14 than later in the year, when fundamentals may be weaker but foreign positioning may well be lighter. Headline inflation stood at 8.0%oya in Dec-13 and JPM economists expect it to average 8.8%oya 14E with over 10%oya level in 2H’14E.

    ? We estimate, from this CRR hike, an impact of roughly 2%-5% on 14E NII of the four banks under our coverage, with impact on Guaranty Trust at the lower end and FBN, UBA and Zenith closer to 4%-5%. This assumes a loss of 9%-10% spread on the liquidity mopped up by the CRR move and assuming that the deposit liquidity is placed in sovereign paper (in such a case, bottom-line impact will be similar to NII impact as the yield is tax-free). Real impact though is likely to be lower in our view, than estimated above, helped by tactical positioning of banks in the form of reducing the pricing on public sector deposits following this move, likely lower mix of public sector deposits currently given the CRR hike on this book in early Q3’13 (banks are yet to report Q4’13 numbers, likely end Mar-14), higher liquidity inflow into banking b/s recently from maturity of AMCON bonds (c.NGN 1.1trn) and b/s shifting from investments into lending book in our view going into 14E (lending as a % of system banking assets has been gradually rising to 41% Nov-13 vs. 37% in Nov-12).

    ? Should CRR on pvt sector deposits also be hiked from the current 12% to 15% (the CBN communiqué states that 3 of the 8 policy committee members voted in favor of an increase in this level), this would mop up an additional cNGN357bn of liquidity from the banking system (based on Nov-13 non-public sector deposit base of NGN11.9trn) with concurrent bottom-line impact on banks likely being lower than the impact of public sector deposits CRR action as noted above.

     

  • UBA endows AFRIFF prizes

    UBA endows AFRIFF prizes

    FIRED by the belief that movies are a great platform to showcase Africa’s rich cultural heritage to the world, the management of the United Bank for Africa has shown its commitment to the development of the African film industry.

    Against this backdrop, the bank has thrown its weight behind the 3rd edition of the Africa International Film Festival (AFRIFF 2013) by particularly supporting the training workshops in cinematography, sound for film, scriptwriting and acting, thus making it possible for several young Nigerians with interests in film to attend these classes at no expense.

    UBA went a step further with the endowment of several AFRIFF 2013 award categories with cash prizes, ranging from 2,000 to 6,000 US Dollars, a move which its management says stems from the belief that the film industry in Africa can rival the American and the Indian film industries, if the right incentives and support are put in place.

    The bank has been noted as one of the most consistent supporters of the continental film industry. On why it chooses to partner with African Cinema, UBA’s Charles Aigbe, DH Marketing & Corporate Relations, says, “We have and will continue to identify with initiatives that promote and encourage the film industry. Our support for AFRIFF represents our strong belief in the immense opportunities that the fast-growing film industry provides for Africans, especially the youth.”

    AFRIFF 2013 Prizes endowed by UBA Plc. included the Best Feature Film, Best Screenplay, Best Director, Best Actor, Best Actress, Best Documentary and Best Short Film.

  • UBA endows AFRIFF prizes

    FIRED by the belief that movies are a great platform to showcase Africa’s rich cultural heritage to the world, the management of the United Bank for Africa has shown its commitment to the development of the African film industry.

    Against this backdrop, the bank has thrown its weight behind the 3rd edition of the Africa International Film Festival (AFRIFF 2013) by particularly supporting the training workshops in cinematography, sound for film, scriptwriting and acting, thus making it possible for several young Nigerians with interests in film to attend these classes at no expense.

    UBA went a step further with the endowment of several AFRIFF 2013 award categories with cash prizes, ranging from 2,000 to 6,000 US Dollars, a move which its management says stems from the belief that the film industry in Africa can rival the American and the Indian film industries, if the right incentives and support are put in place.

    The bank has been noted as one of the most consistent supporters of the continental film industry. On why it chooses to partner with African Cinema, UBA’s Charles Aigbe, DH Marketing & Corporate Relations, says, “We have and will continue to identify with initiatives that promote and encourage the film industry. Our support for AFRIFF represents our strong belief in the immense opportunities that the fast-growing film industry provides for Africans, especially the youth.”

    AFRIFF 2013 Prizes endowed by UBA Plc. included the Best Feature Film, Best Screenplay, Best Director, Best Actor, Best Actress, Best Documentary and Best Short Film.

  • UBA rewards national essay winners

    UBA rewards national essay winners

    Winning a race that has over 2,000 athletes involved is exhilarating for any athlete. That was how Master Ezenwa Joseph Okonkwo, a 15-year-old pupil of Ambol Comprehensive High School, Akesan-Igando, Lagos, felt when he won the third UBA National Essay Competition for Senior Secondary Schools.

    Okonkwo was rewarded with N1 million education grant for submitting the best essay on ‘How Reading has Impacted my Knowledge’ at an awards event organised by the UBA Foundation last Monday at the UBA Headquarters in Marina, Lagos.

    The teenager beat 12 other finalists to lift the trophy. Toluwase Adeagbo of Sharon Rose Schools College, Saki in Oyo State came second and got N750,000, while Korie Ijeoma Jennifer of Air Force Secondary School, Port Harcourt got N500,000 for coming third.

    The trio also got laptops, which the foundation gave to the nine other finalists as consolation prize.

    Commenting on his win, Okonkwo said he had his father to thank for introducing him to the competition.

    “My father told me about the essay and I believed that I could make it. I worked hard and did a lot of research to write the essay,” he said.

    Commending UBA Foundation for transparency in selecting the winners, Ezenwa’s father, Mr Joseph Okonkwo said he was confident his son could do well but was not sure more popular schools would not overshadow him.

    “I saw the advert in a newspaper and told my son to give it a try. I am impressed with the organisers. I thought that the foundation would give the prize to pupils from big schools. But I was happy that they gave it to my son because he won though his school is not so big,” he said.

    Speaking at the event, Institute of Chartered Accountants of Nigeria (ICAN) Alhaji Alkali Mohammed, added that sustainable national development is only possible through investment in education.

    “Any competition such as this will certainly help to bring out the best in the youths, by kindling their competitive spirit and academic excellence,” he said.

    Also UBA’s Deputy Managing Director, Mr Kennedy Uzoka, said: “In UBA we appreciate and nurture talents. All the finalists here today have opportunity to excel in life and UBA is delighted to play a part in the process,” he said.

     

  • Police smash four-man gang in dividend warrants scam

    Police smash four-man gang in dividend warrants scam

    •One arrested for duping applicants

    Anambra State Command of the State Security Service (SSS) has arrested four persons, who allegedly specialise in diverting and cashing the dividend warrants of unsuspecting shareholders.

    Among their victims are Senator Uche Chukwumerije, Prof. Ifedayo Olawale Oladipo, Rev. Uma Ukpai, United Bank for Africa (UBA), Oando Plc, among others.

    The suspects are Cletus Chris Ohaegbulem (aka Chris Ohams), Emmanuel Mbakwe, Yahaya Anifowoshe and Mojeed Babatunde.

    They were arrested by the command in Lagos, Asaba in Delta State and Umuahia in Abia State.

    Also apprehended was a 30-year-old suspect, Chukwunonso Emeghalu, from Udi Local Government Area of Enugu State, for allegedly duping people, promising to help them get employment in the SSS.

    Parading the suspects yesterday, the State Director of SSS, Mr. Alex Okeiyi, warned the public to be wary of fraudsters claiming to be agents of any organisation or working for the SSS, either in the state or elsewhere.

    He said the four suspects specialised in stealing the dividend warrants of unsuspecting shareholders from NIPOST, Falomo, Lagos, and cashing them in banks.

    Okeiyi said they would be handed over to the relevant agency for investigation.

    He said Ohaegbulem (43) from Ahiazu Mbaise Local Government Area of Imo State had been a notorious fraudster, who maintained multiple identities, which he used in opening fictitious bank accounts to dupe unsuspecting victims before he was arrested in Asaba.

    Okeiyi said 194 dividend warrants belonging to unsuspecting shareholders were recovered from him, among them that of Rev Uma Ukpai.

    Answering reporters’ questions, Ohaegbulem confessed to have connived with the manager of a micro-finance bank in Umuahia , now at large and the operations manager to cash the dividend warrants through a spurious company, Access Enterprises Ltd, which he set up to perpetrate the act.

    He also confessed to have swindled many through non-existent contracts in the Ebonyi State Government House, Abakaliki, posing as a top official of the government.

    Anifowoshe (45), a trader on Lagos Island, said he supplied dividend warrants to Ohaegbulem.

    He told reporters that he was approached by Mr. Chisom last year to source dividend warrants for him. This, according to him, made him approach Mosheed Babatunde, a NIPOST, Falomo, Lagos worker to source items and compensations were paid to him.