Banking

UBA Expects Overseas Operations to Boost 2018 Earnings

Published

8 years ago

04/04/2018

By Dipo Olowookere

Last month, the United Bank for Africa (UBA) Plc announced that its London subsidiary had been given the permission to operate wholesome banking activities in the United Kingdom.

This made the Africa’s global bank the only Sub-Saharan African lender to conduct banking operations in New York and London, as well as 20 other African countries.

For the Head of Investor Relations at UBA, Mr Abiola Rasaq, this development will boost earnings of the financial institution in 2018.

Speaking with newsmen at a briefing in Lagos last week, Mr Rasaq noted that with the expansion to the UK and the US, UBA would record more business from its operations in those jurisdictions.

“We took a decisive step to expand our business in London. We have a subsidiary in London, which is in addition to the New York office.

“To the best of our knowledge, we are the only Nigerian bank that has a deposit-taking licence in the United States. No other bank in Nigeria does that. And we say that proudly because today, we also service the correspondent banking needs of a number of Nigeria banks in the USA because of our deposit-taking licence.

“So, what we did was to take our business in the UK a little further by applying to the UK Prudential Regulation Authority, which is more or less like their central bank. We applied to the PRA and invariably to the Financial Conduct Authority of the UK.

“Just early this year, we were given the authorisation to deepen and expand our business in the UK.

“We are happy to say that 2018 going forward, you will see more business going through our UK business,” Mr Rasaq told journalists at the press conference.

Commenting the lender’s mobile banking app, Mr Rasaq said the platform has recorded a huge success, emerging highest at 4.2 among other Nigerian banks’ apps in the Google Store,

“There is lot of things we are doing around our digital banking, because we have seen that this is the way to go; that if the future of banking.

“To that extent, the best thing to do is to continue to go digital, so that we can serve our customer best,” he said.

Mr Rasaq said the bank will continue to grow the business and make it a world class financial institution and an envy of the continent.

Also speaking at the event, the Group Chief Finance Officer of UBA, Mr Ugo Nwaghodoh, attributed the bank’s improved performance in the 2017 financial year to prudent balance sheet management, among other things.

In its 2017 earnings, UBA recorded gross earnings of N462 billion, a 20 percent growth in overall revenue for the year.

This, according to Mr Nwaghodoh, was due to growth in loan book and treasury assets, as well as efficient balance sheet management.

“The yield environment was positive and relatively high during the first half of the year. Despite growing our revenue, we also had strong control on our cost of funding.

“The banking business is intermediation. How efficient you are in the intermediation process is very vital. This borders on how much you bought money and sold money.

“Cost of funding was kept under significant check despite the tight liquidity environment you saw in the second half of the year. We were able to keep our weighted average cost of fund at 3.7 percent.

“We kept it constant from 2016 in a market where fixed deposit interest rate went as high as 20 percent.

“That efficiency in interest income and cost of funding side led to a net interest income growth of about 25 percent,” he said.

In its financial statements for the year ended December 31, 2017, UBA declared a profit after tax of N78.6 billion compared with N72.3 billion in the corresponding period of 2016, while it achieved a profit before tax of N105.3 billion in 2017 against N90.6 billion in 2016.

In addition, the bank achieved an interest income of N325.7 billion against N264 billion in 2016, while the net interest income stood at N207.6 billion as at December 31, 2017 compared with N165.2 billion as at December 31, 2016.

For the net trading and foreign exchange income, it closed at N49.1 billion in the period under review against N43.8 billion in 2016.

In 2017, the group’s Nigeria operations contributed N314.5 billion to the total N461.6 billion generated as revenue compared with N268.8 billion in 2016, while the rest of Africa added N150.7 billion to the revenue versus N121.9 billion in 2016, and its operations outside Africa added N12.6 billion last year against N9.8 billion two years ago.

Furthermore, out of the N78.6 billion raked as profit in 2017, Nigeria contributed N41.1 billion compared with N47.2 billion in 2016, rest of Africa added N33.8 billion in 2017 against N24.3 billion in 2016, and outside Africa put N5.3 billion in 2017 in contrast to N3.4 billion in 2016.

Banking

The Alternative Bank Opens Effurun Branch in Delta

Published

19 hours ago

04/12/2025

Modupe Gbadeyanka

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.”

Banking

Payattitude, PAPSSCARD to Co-brand Payment Card

Published

2 days ago

03/12/2025

Aduragbemi Omiyale

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#.

Banking

CBN Stops Special Authorisation to Withdraw Above N5m

Published

2 days ago

03/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, effective January 2026.

The new set of cash-related policies are designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

This was contained in a circular released on Tuesday, December 2, 2025, and signed by the Director of the Financial Policy and Regulation Department of the central bank, Ms Rita I. Sike.

The apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances. However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN stated.

So, effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million.

Withdrawals above these thresholds will attract excess withdrawal fees of 3 per cent for individuals and 5 per cent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) will be capped at N100,000 per customer, subject to a maximum of N500,000 weekly. These transactions will count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks (DMBs) are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The apex bank clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

This is the latest move by the apex bank to strengthen the Nigerian financial ecosystem. In October, the CBN issued a directive requiring all financial institutions to submit detailed monthly reports on the activities of their Point-of-Sale (POS) agents.

In the circular signed by the Director of the CBN’s Payments System Policy Department, Mr Musa Jimoh, it was stated that the reports must include comprehensive data on the nature, value, and volume of transactions conducted by agents.

The circular also stated that POS agents are restricted to a maximum of N1.2 million per day, while individual customers are limited to N100,000 in daily transactions.

CBN said these limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework.