Banking
UBA Expects Overseas Operations to Boost 2018 Earnings
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.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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