Dipo Olowookere
By Dipo Olowookere
Group Managing Director of United Bank for Africa (UBA) Plc, Mr Kennedy Uzoka, has assured shareholders of the company that the lender was strong enough to weather any storm.
According to him, the present state of the bank’s financial status can support the growth target set by the management.
He said UBA remains liquid and well capitalised with a capital adequacy ratio (CAR) ratio of 24 percent, which is well above the minimum level set by the Central Bank of Nigeria (CBN).
Business Post reports that the CBN requires banks with international subsidiaries to maintain CAR of 15 percent, while banks without international subsidiaries are expected to maintain CAR of 10 percent, but the minimum requirement for the systemically important banks is 16 percent.
CAR is a measurement of a bank’s available capital expressed as a percentage of its risk-weighted credit exposures.
Speaking at the Annual General Meeting (AGM) of UBA in Lagos yesterday, Mr Uzoka said even under a BASEL III scenario, the capital buffer of the financial institution remains strong to support growth.
He said politics will continue to shape the business environment in Nigeria and other African countries but however maintained that the company remains optimistic and will continue to deepen its play in target growth sectors that are benefactors of the government’s reforms and policies whilst banking new opportunities.
Also speaking at the event, Chairman of UBA, Mr Tony Elumelu, said the company was on a stronger footing to gain market share in Nigeria and other 19 African countries where it operates.
According to him, despite the relatively slow recovery of the economy, UBA’s retail deposit grew by 42 percent, a testament to its improved service channels and enhanced customer service.
“Overall, the group recorded a profit before tax (PBT) of N106.8 billion. Our interest income also rose by 11 percent on the back of increased asset base and African operations contributed 40 percent of these earnings, reinforcing the positive outlook on our Group’s profitability over the medium to long term,” he said.
During the meeting, shareholders approved the total dividend payment of 65 kobo per share, bringing the total dividend for the year 2018 to 85 kobo.
They commended the board and management for the dividend in spite of unfriendly operating environment, noting that with the financial results, UBA has shown that it can make Africa proud being the biggest bank.
