UBA’s Exposure to Oil Sector Within Prudential Guidelines—Elumelu

By Dipo Olowookere

**As Shareholders Praise 20% Rise in Dividend Payout

The decision of the board of United Bank for Africa (UBA) Plc to reward shareholders with a dividend of N1 for the 2019 financial year (UBA) has been commended.

On Wednesday, the financial institution held its Annual General Meeting (AGM) virtually by proxy and had in attendance shareholders, management and staff members, together with representatives of relevant regulatory bodies.

A shareholder of the bank, Dr Umar Farouk, who doubles as President of Association for the Advancement of the Rights of Nigeria Shareholders, praised the 20 percent increase in dividends proposed by the board.

According to him, “I am also happy that you fulfilled the promise you made at the AGM last year to pay dividends in Naira and not kobo, by paying N1 per 50 kobo shares to shareholders, in this difficult time.

“We have seen the first quarter results, and we are particularly happy about the performance of our subsidiaries across Africa.”

Mr Farouk also applauded the N5 billion ($14 million) donated by the lender to the fight against COVID-19, adding that the move was unprecedented and will substantially support governments, as they work to tame the scourge.

Speaking at the AGM, which was viewed on the internet by several shareholders, the Group Managing Director of UBA, Mr Kennedy Uzoka, said the bank immediately activated its business continuity plan when the coronavirus broke out.

According to him, “All the investments we have made over the years in the area of technology will begin to yield now, because already we have continued to meet the needs of customers in terms of digital patronage, owing to the growing traffic we have been receiving in the past few weeks. We are well prepared for all situations.”

While expressing hope that a vaccine is found for the coronavirus, Uzoka disclosed that UBA will continually do business in a way to ensure that customers do not have to physically be in the bank.

“We are set to take our business to the customers wherever they are and however they want it,” he said. “As our first quarter results indicate, we can produce robust results, despite the challenges. We are buoyed by our significant geographic diversification, our historic investment in efficiency and the dedication of our staff. Our commitment to our loyal shareholders is amply demonstrated in our progressive dividend policy,” he added.

Corroborating the GMD, Chairman of UBA, Mr Tony Elumelu, stressed that UBA was well prepared for the crisis, having put in place effective measures to ensure that its operations continue smoothly.

Speaking on the company’s exposure to loans disbursed to players in the oil and gas sector, Mr Elumelu underlined the fact that they are well within prudential guidelines.

Since the pandemic this year, prices of crude oil have fallen at the global market, giving many to worry about investments in the sector.