Banking
Gauging Leaps and Bounds of UBA Plc, Lion of Africa’s Banking
The United Bank of Africa has once again asserted its position as the lion of Nigeria’s banking. Most analysts agree on that, looking at the way it cut through on economic headwinds in the first quarter of 2017.
Quarterly reports, ratings, peer competitiveness, ready shareholders, and a motivated workforce are reasons the UBA will do better as leadership and market share go.
Ending 2016 with N384 billion in earnings, which was 22 percent increase from 2015’s figure, and a 32 percent rise in profit after tax to N91 billion, the bank ramped up N23 billion in the first quarter of 2017. That is 41 percent growth compared to the first quarter of 2016.
“Our performance in the first quarter of the year strengthens our optimism on economic and business recovery in Nigeria and many of our markets across Africa,” said Group Managing Director, Mr Kennedy Uzoka.
“More importantly, this result is evidence of efficiency gains in our pricing, balance sheet management and operations.”
While its Nigerian operations strengthen in terms of bottomlines, the overseas branches are equally faring well.
According to Mr Uzoka, the bank’s external operations contribute 35 percent of its earnings.
“We remained prudent in risk asset creation growing net loans by 2% year-to-date, as we have continued to monitor development in key sectors of the economy to take advantage of emerging bankable opportunities in due time,” he said while commenting on the quarterly report.
The UBA operates in 19 countries across Africa, and has branches in New York, London, and Paris. It serves millions customers in over 1000 business offices and centres where it carries out its retail, commercial and corporate banking, cross border payments and remittances, trade and finance, and other banking services.
Its flying start in 2017 further gets confirmation from Standard and Poor’s early in the month.
According to the international rating agency, the UBA is rated ‘B’ in long-term and ‘B’ short-term global scale counterparty credit ratings.
Analysts at Proshare said S&P’s ‘B’ rating is the highest rating currently assigned to any Nigeria-based financial institution.
“It thus reinforces the respectable quality and strength of UBA, the third largest Nigeria-based bank by total assets, deposits and profits,” the analysts said.
S&P also confirmed that UBA’s earnings will be resilient despite the economic slowdown in Nigeria. “We believe the bank’s capital and earnings under our risk adjusted capital and earnings framework will remain moderate over the next 12-18 months, with its capital adequacy ratio remaining well above minimum regulatory requirements,” the ratings agency noted.
The bank’s capital adequacy ratio was 19.7 percent at year-end 2016, way above the regulatory minimum of 15 percent. S&P believe it will remain stable over the next 12-18 months. Its showings in other indices are also superlative. Its credit losses to decline to about 1.0% in 2017-2018; its average liquidity ratio is doing well, 42 percent as of 2016; it has a stable funding ratio of 143 percent as of last December, thus becoming one of the lowest levels of loan leverage in Nigeria.
It has been a sustained rally for the bank. Which is a mark of its competitiveness in any situation. In the midst of decline Nigeria’s economy experienced last year, UBA still managed to tide over so well that it won five plaques in the Bank of The Year 2016 country awards in Gabon, Congo-Brazzaville, Senegal, Cameroon and Chad at the last annual Bankers Award in London.
Achievement trainers will make us such feat is possible when an organisation has a water-tight philosophy of goal getting. Well, the UBA has one: the three E’s—Enterprise, Excellence, and Execution.
But the GMD thinks that is not all. So he dedicated the awards to the customers whose loyalty, support and patronage, according to him, remain the fountain of the group’s growth and competitive edge in the African continent.
The UBA has over 14 million customers in Africa only. And they are well served by a synergy if technology and an army of highly motivated staff. It means a lot to the bank, especially the GMD, that its human resources remain in high spirits. As the 2016 annual report came out, and shareholders got over N19 billion in dividends, no fewer than 3000 staffers got promotion, too.
“Investment in our human capital is critical to our success,” said Mr Uzoka.
“It is a product of our ability to invest for the long term and create an institution that is built to last. It is the bedrock of our determination to be Africa’s leading customer focused bank.”
All thing being equal, the second quarter reports can only get better.
Source: National Daily
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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