Financial Institution United Bank for Africa has witnessed a tremendous growth- particularly within the African region.
And this laudable development is said to have contributed 19% to it's recent revenue declaration.
On
the heels of this revelation came added recognition, the Philip Oduoza
led power institution is now the Best Bank in support of Agriculture in
the country.
Here are unedited information that made this revelations to insidegists.blogspot.com
'African
operations of the United Bank for Africa (UBA) Plc contributed
significantly to full year 2012 revenues an indication that the bank is
reaping returns from its spread in the rest of Africa.
'The
bank’s full year financial results shows that the 18 African
subsidiaries contributed N42 billion to the UBA Group’s N220 billion
revenues which was announced recently. Analysis of the revenue
contribution from the subsidiaries partly helped drive the significant
34 per cent rise in the Group’s 2012 earnings from its 2011 levels.
Apart from Nigeria, UBA has subsidiaries in 18 different African
countries.
'The impressive results attest to claims made recently
by the Group Managing Director/CEO, UBA Plc, Mr. Phillips Oduoza,
during an address to the stockbrokers and investors at the Nigerian
Stock Exchange (NSE) that the bank has continued to record increasing
contributions from the subsidiaries to the Group’s bottom-line.
'The
UBA Group grew earnings by a significant 34.4 per cent to a new three
year high while profit after tax rose 904 per cent to N55 billion as at
the close of 2012, reversing a N1.12 billion loss in the previous year
with total comprehensive income attributable to equity holders of
N55.53billion, an increase of 5,058.04 per cent.
'Specifically,
UBA Senegal, one of the subsidiaries in West Africa posted a significant
168 per cent in earnings to N3.5 billion in December 2012 from N1.31
billion in December 2011. The bank’s profit before tax also rose by a
178 per cent to N1.27 billion from N455 million within the same period
helped by the fact that management was able to hold down growth in
operating expenses at just 3.9 per cent, which resulted in most of the
earnings translating into profit for the bank.
'A similar feat
was achieved in Sierra Leone where United Bank for Africa (Sierra Leone)
Limited made steady and significant strides in the growth of its
profits and total assets. According to the bank’s financial statement
for last year, the bank posted a profit before tax (PBT) of 8. 2Billion
Leones, compared with 2.4Billion Leones in 2011, representing an
incremental growth rate of 239%.In profit-after-tax (PAT) terms, the
bank grew by 240% from 1.7 Billion Leones in 2011 to SLL5.8 Billion
Leones last year.
'There was also a very huge growth in total
assets of 213% from December 2011 to the same period last year. The
bank’s total assets industry ranking of 10th in December 2011 inched up
to 6th in December 2012 with a growth of 167B Leones within the two
periods. With this performance, UBA Sierra Leone has consolidated its
position as one of the most profitable banks in this country, having
achieved a growth in its profits far in excess of 200% in one year.
'The
impressive performance of the bank is also anchored on several
cost-efficient initiatives and a strong risk management framework that
optimised the use of resources, and which has resulted in UBA Sierra
Leone becoming one of the best banks in cost-income and NPL ratios in
Sierra Leone, both of which were 49% and 1.6% respectively by 2012
year-end. The period under review also saw significant improvement in
the bank’s return on equity which increased from 7% in 2011 to 19% last
year against industry ROE of 8%.
'The increasing contribution of
subsidiaries to UBA Plc’s revenue base is an affirmation commendable
diversification of the bank’s revenue base across countries. It implies
that UBA’s country risk exposure to Nigeria is significantly now less.
'Indeed,
UBA Senegal also witnessed a significant expansion in its market share
in Senegal with the bank’s deposit base rising a significant 15 per cent
to close the year at N27 billion contributing an average of 84 per cent
of the bank’s asset base. This puts the bank in a strong position to
continue to support its growth in Senegal. The bank fast pace growth is
backed by a strong capital base with a capital adequacy ratio of 60 per
cent, well above both domestic and international requirements. The
bank’s loan to deposit ratio at 33.2 per cent also means that it is in a
strong position to further expand its lending to the local economy in
Senegal.
'UBA’s presence in certain countries like Mozambique
where the world’s largest gas field was recently discovered will have a
positive impact on its future earnings. It positions the UBA Group to
partake in the expected fast growth that Mozambique will start
experiencing because of the gas discovery making its presence in that
country strategic. It will be recalled that two country subsidiaries of
UBA Plc recently emerged the ‘Best Banks’ in their respective countries.
UBA Cameroon and UBA Senegal on March 19, 2013 were named ‘World’s Best
Banks in 2013’ in their respective countries by Global Finance magazine
in New York.
'Explaining the UBA Group’s strong performance,
Phillips Oduoza, Group Managing Director and CEO said “UBA has continued
to focus on customer service delivery, efficient capital management and
returns maximization with return on equity exceeding 30 per cent in
2012. Our ability to serve clients globally with solutions tailored to
their needs has given us a strong advantage in today’s rapidly changing
and highly competitive market place”
'The UBA Group is an
acknowledged industry leader in commercial and retail banking across
Africa with operations in 19 African countries serving over 7 million
customer accounts through multiple channels and remote locations.
In
a related development, In recognition of its immense contribution to
the growth of Nigeria’s agricultural sector and value addition to the
economy, United Bank for Africa (UBA) Plc has been named the best bank
in support of Agriculture in the country.
'UBA clinched the award
at the maiden edition of BusinessDay Annual Banking Awards which held
recently at the Eko Hotel in Lagos. The Bank beat three other banks that
were nominated after a critical assessment by organisers of the awards.
'According
to statistics, UBA tops the Central Bank’s list of lenders to the
agricultural sector. By 2012 financial year end, UBA had channeled
seven per cent of its N687 billion loan book to agriculture. This is
the highest exposure of any bank in Nigeria and invariably places the
bank as one of the strongest supporters of agriculture in Nigeria.
Divisional Head, Consumer Banking, UBA Plc, Mr. Ilesanmi Owoeye,
received the award on behalf of the bank.
'The BusinessDay Annual
Banking Awards was instituted as a way of rewarding banks that are
supporting economic growth in the country without putting the financial
sector at risk. “It, thus serves as a positive incentive for banks to
support the economy in a credible way while recognising and rewarding
banks that have adopted best practice in delivering services to the
Nigerian people,” the organisers said.'
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