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UBA Earnings Hits N494bn, Records Significant Asset Growth, Driven By Market Share Gains Across Africa

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The Pan-African financial institution, United Bank for Africa Plc has announced its Audited 2018 Financial Results with impressive growths achieved across major financial lines.

According to the 2018 financials filed at the Nigerian Stock Exchange on Tuesday, the Africa’s global bank’s gross earnings grew by 7.0 percent to N494.0 billion, compared to N461.6 billion recorded in the corresponding period of 2017. The Bank’s total assets also grew significantly by 19.7 percent to an unprecedented N4.9 trillion for the year under review.

These results, according to financial analysts largely demonstrates the benefits of the Group’s Pan-African footprints with continued growth in market share in key countries of operation across Africa. The contributions of ex-Nigeria subsidiaries at 40 percent, again confirms the strong footing of the Group’s franchise in Africa.

Despite the challenging business environments in Nigeria and across key markets in Africa, the Bank’s Profit Before Tax was quite impressive at N106.8 billion, a 2.4 percent growth, compared to N104.2 billion in 2017 financial year. In same vein, the Profit After Tax rose by 1.4 percent to N78.6 billion, compared to N77.5 billion recorded in 2017. Due to lower foreign exchange trading income, Operating Expenses grew by 4.1 percent to N197.3 billion, compared to N189.7 billion in 2017

Reflecting the modest appetite of the Bank in the year under review as well as impact of IFRS 9 implementation, net loans recorded a prudent 3.9 percent growth to N1.72 trillion while Customer Deposits increased by a remarkable 22.5 percent to N3.3 trillion, compared to N2.7 trillion recorded in the corresponding period of 2017, reflecting increased customer confidence and enhanced service channels. Furthermore, Shareholders’ Funds decreased marginally by 4.8 percent to N502.6 billion, reflecting the impact of International Financial Reporting Standards 9 (IFRS 9) implementation.

Commenting on the result, the Group Managing Director/CEO, Kennedy Uzoka noted that the year 2018 was important for the Group, as it gained further market share in many countries of operation. More so, the CEO was excited at strategic achievements made in the year, including the start of wholesale banking operations in London, as it seeks to leverage the Group’s unique network across Africa. UBA also opened its 20th African operation.

“Defying the relatively weak economic growth in Africa, earnings were positive and we grew our balance sheet by 20 percent, driven by the 23 percent growth in our deposit funding. In a period of economic uncertainty, we have focused on retail deposit mobilization, with exciting results. We recorded a 48 percent year-on-year growth in retail deposits and improved our CASA ratio to 77 percent, optimizing our funding mix, which will enhance our net interest margin (NIM), over the medium term,” Uzoka said.

Uzoka remained confident that the Bank’s performance would be even stronger in the years ahead and shareholders would enjoy even greater dividends, as the Group is well positioned to take advantage of imminent fiscal reforms across many economies in Africa, a positive outlook which should stimulate new opportunities in infrastructure, manufacturing, agriculture and resource sectors.

He continued: “Our operations in the United Kingdom now offer end-to-end trade, treasury, structured finance, wholesale deposit taking and ancillary services. With this development, we are better positioned to fulfill our aspiration of deepening trade and capital flows between Europe and Africa. We are also pleased with the market acceptance of our new operation in Mali”.

“Having said this, I am excited by the profitability of our ex-Nigeria subsidiaries, which now contributes an impressive 40 percent earnings to the Group. At the moment, our Nigerian business is benefiting from our product and operational focus, gaining market share – most importantly, the increasing penetration of our retail offerings is reassuring, as this fundamental progress aligns with our strategy of focusing on sustainable growth”.

“With great optimism, we look forward to a more rewarding 2019 for our shareholders, as we further sweat our resources and optimize productivity towards delivering superior returns,” he concluded.

Also speaking on the performance, the Group CFO, Ugo Nwaghodoh said that the improving mix of the Bank’s funding base and asset pricing, reinforce a positive outlook on Net Interest Margin(NIM) and broader balance sheet efficiency.

“Whilst considerable investment in people, digital transformation and channel enhancement masked cost efficiency gains within the year, with cost-to-income ratio at 64 percent, we are convinced that our diligent execution of new initiatives will ensure the reduction of Cost to Income Ratio(CIR) towards our medium-term target. Our balance sheet is being positioned to take full advantage of market swings and our strong 25 percent capital adequacy ratio provides headroom for growth, even under a BASEL III scenario. As it stands, UBA has started the year on a good note and should sustain the momentum, as we work towards improving our Return on Average Equity (RoAE),” Nwaghodoh said.

United Bank for Africa Plc is a leading pan-African financial services group, operating in 20 African countries, as well as the United Kingdom, the United States of America and with presence in France.

UBA was incorporated in Nigeria as a limited liability company after taking over the assets of the British and French Bank Limited who had been operating in Nigeria since 1949. The United Bank for Africa merged with Standard Trust Bank in 2005 and from a single country operation founded in 1949 in Nigeria – Africa’s largest economy – UBA has become one of the leading providers of banking and other financial services on the African continent. The Bank which was awarded the Best Digital Bank in Africa by the Euromoney awards in 2018, provides services to over 17 million customers globally, through one of the most diverse service channels in sub-Saharan Africa, with over 1,000 branches and customer touch points and robust online and mobile banking platforms.

The shares of UBA are publicly traded on the Nigerian Stock Exchange and the Bank has a well-diversified shareholder base, which includes foreign and local institutional investors, as well as individual shareholders.

BIG STORY

JUST IN: Conoil And Total Energies Sign Massive Production Contract In Paris

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The Nigeria’s Oil And Gas Output is about to experience a big boost as Conoil and Total Energies sign massive production contract in Paris.

The contract was signed by Chairman of Conoil Producing, Dr. Mike Adenuga Jr., Commander of the French Légion d’Honneur (CdrLR) Mr. Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, at the company’s headquarters at LA DEFENSE, in Paris.

 

More to come…

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BIG STORY

UBA Sponsors Lagos Fair For Seventh Consecutive Year, Launches Special Draw For Customers

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  • commits to growing SMEs for global Impact

 

Africa’s Global Bank, United Bank for Africa (UBA) Plc, has reiterated its commitment towards supporting the growth of Small and Medium Scale businesses for global impact, as it headlines the sponsorship of the Lagos International Trade Fair (LITF) for the seventh consecutive year.

Organised by the Lagos Chamber of Commerce and Industry (LCCI), this year’s trade fair, which was flagged off on Friday November 7, at the Tafawa Balewa Square, Onikan, Lagos will be open to all till November 17, 2025, and is expected to attract thousands of exhibitors, investors, and visitors from across Nigeria and the globe.

In line with its customer-first philosophy, UBA will host a rewarding experience for its customers with a dedicated, full-service branch within the trade-fairground.

Account holders who perform any transaction, such as deposits, withdrawals, or transfers, etc, at this branch will be instantly eligible to participate in a special “Lucky Dip” draw, which will offer them the chance to win a variety of premium prizes.

Speaking during the opening ceremony of the fair, UBA’s Head, SME Banking, Babatunde Ajayi, underscored the strategic importance of the longstanding partnership with LCCI while reaffirming that this collaboration is a critical component of the bank’s core mission to mobilise capital as well as empower enterprises of all scales, with a focus on growing SMEs for global impact.

“Our consistent support for the LITF and our strategic, bank-wide initiatives around the AfCFTA are interconnected,” Ajayi stated. “They are two sides of the same coin, and it reflects a deep-seated commitment to building the robust financial architecture that is required to empower African businesses and enable them trade seamlessly across borders.”

UBA’s Group Head, Marketing and Corporate Communications, Alero Ladipo, positioned the bank’s participation within the context of its vision for Africa’s economic transformation, as detailed in its recently published white paper on achieving a $4 trillion continental economy.

“The LITF represents one of several strategic platforms through which UBA is actively translating the ambitious goals of our whitepaper into tangible action,” Ladipo said. “Our comprehensive roadmap to a $4 trillion African economy is being built through practical, on-ground engagements such as this, which is focused on growing SMEs for global impact. These are platforms that directly connect businesses, facilitate commerce, and unequivocally demonstrate our resolve to turn a bold vision into a tangible reality for millions.”

Ladipo noted that deep partnerships, which are complemented by continuous digital innovations and cross-border trade solutions, will lay the groundwork for sustainable, inclusive economic growth that will benefit corporations, SMEs, and individual entrepreneurs across Africa.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees’ group-wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.”

“Our consistent support for the LITF and our strategic, bank-wide initiatives around the AfCFTA are interconnected,” Ajayi stated. “They are two sides of the same coin, and it reflects a deep-seated commitment to building the robust financial architecture that is required to empower African businesses and enable them trade seamlessly across borders.”

UBA’s Group Head, Marketing and Corporate Communications, Alero Ladipo, positioned the bank’s participation within the context of its vision for Africa’s economic transformation, as detailed in its recently published white paper on achieving a $4 trillion continental economy.

“The LITF represents one of several strategic platforms through which UBA is actively translating the ambitious goals of our whitepaper into tangible action,” Ladipo said. “Our comprehensive roadmap to a $4 trillion African economy is being built through practical, on-ground engagements such as this, which is focused on growing SMEs for global impact. These are platforms that directly connect businesses, facilitate commerce, and unequivocally demonstrate our resolve to turn a bold vision into a tangible reality for millions.”

Ladipo noted that deep partnerships, which are complemented by continuous digital innovations and cross-border trade solutions, will lay the groundwork for sustainable, inclusive economic growth that will benefit corporations, SMEs, and individual entrepreneurs across Africa.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees’ group-wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.”

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At UBA Business Serie, Digital Entrepreneurs Highlight Authenticity, Consistency, Passion As Real Game-Changer

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, hosted another enlightening edition of the UBA Business Series, bringing together some of Africa’s most dynamic digital entrepreneurs and influencers to discuss the secrets behind building impactful online communities.

This edition of the Business Series, which had the theme, “Content that Converts: Building Influence and Driving Growth Through Strategic Marketing,” was held at the Tony Elumelu Amphitheatre in UBA Head Office, Marina, Lagos on Thursday.

The very engaging session, shed light on how authenticity, consistency, and passion remain true cornerstones of success in the ever-evolving digital landscape, while the content creators shared first-hand experiences from their journeys across diverse industries and markets.

UBA’s Group Head, Digital Banking, Kayode Olubiyi, who welcomed participants and the panellists to the session, reaffirmed the bank’s commitment to empowering entrepreneurs across Africa through knowledge-sharing and capacity-building initiatives such as the Business Series.

He emphasised that the quarterly event continues to serve as vital avenues for supporting innovation and entrepreneurship, equipping individuals with practical insights to grow their brands and businesses in a competitive digital economy.

In his keynote address, the Managing Director/CEO at Nitro 121, Dr. Lampe Omoyele, who said that “You can create something out of what appears to be nothing,” gave insight on key trends to develop content that creates Impact.

He noted that content creation should go beyond aesthetics or trends to focus on value, purpose, and agility as he pointed out that creators who aim to make a difference must develop a clear personal brand identity and remain consistent in delivering messages that resonate with their audience.

The panel session featured an impressive line-up of digital entrepreneurs and content creators, including Digital Creator and Actor, Elozonam Ogbolu; Digital Health Educator, Chinonso Egemba (Aproko Doctor); Kenyan Actress and Media Entrepreneur, Catherine Kamau; Content Creator, Nasiru Lawal (Nasboi) and Digital Influencer, Enioluwa Adeoluwa, who was also the moderator of the event.

Growth is very important, says Nasiru Lawal. “For the younger creators here, my best advice is this: please prioritise your growth. As a creator, the moment you become famous, you no longer move at your own pace; you move at the people’s pace. It is therefore important to ensure you grow consistently and then overtime, the recognition and the money begins to roll in.”

Elozonam Ogbolu who agreed with Lawal, had this to say: “Content creators have to engage their audience with proper storytelling, because brands are always out to carefully choose their creators. For the brands, you must pick your influencer or ambassador very deliberately and work together over time to grow. That is when you will see a proper return on investment.

In his submission, Chinonso Egemba, said, “If you’re building a business or doing content creation, treat content creation as a business. When you treat it as a business, it needs proper structure. Otherwise, it won’t last. If you don’t put structure in place, you’ll end up responsible for everything, and that leads to burnout. You have to build structure, because if you want longevity, structure is very essential.

For Catherine Kamau, it is important for content creators to find a balance and stay close to their community. “What I realized is I have a community that keeps me grounded, and that’s family. When you get famous, you tend to forget where you come from, you know, social media is an illusion and you start assuming that it is your real family until bad things happen to you. So please remember the real people in your life, because fame can get to your head, but those are not the people who are going to have your back when things go south.”

The creators while sharing their diverse experiences, they collectively emphasized that building a personal brand should take precedence over chasing financial gain. They also underscored the importance of originality, urging young creators to find their unique niche rather than replicating what others have done.

UBA’s Group Head of Marketing and Corporate Communications, Alero Ladipo, who commended panellists for taking time to share their useful insights at the event, took time to celebrate the UBA Management for organising conversations like this which according to her, ‘remain impactful and will impact not just the individual customers, but also the economies at large.”

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.

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