Banking
UBA to Realign Funding Mix for Lower Cost of Funds
**Trims NPL Ratio to 5.62%
By Dipo Olowookere
The management of United Bank for Africa (UBA) Plc has expressed its desire to make efforts to reduce its cost of funds by realigning its funding mix.
Chief Financial Officer (CFO) of the lender, Mr Ugo Nwaghodoh, made this disclosure while commenting of the bank’s mid-year financial statements released at the weekend to the Nigerian Stock Exchange (NSE).
“I am particularly delighted that the key ratios are trending in the right direction. The net interest margin is trending upwards and will continue to improve as we responsibly grow the risk asset portfolio and realign the funding mix to lower our cost of funds.
“The cost-to-income ratio trended down to 60 percent with our focus on balance sheet and operational efficiencies which should enable us deliver our medium-term CIR target. Capital adequacy ratio increased to 28 percent from 23.6 percent in December 2018, providing a very strong buffer for asset growth,” he stated.
Continuing, Mr Nwaghodoh stated that, “We had a strong start in the year given the prevailing macroeconomic environment across our various markets.”
According to him, “There is better diversification in profit contribution as our banking subsidiaries across Africa contributed 38 percent of the profit before tax, whilst our recently repositioned UK business contributed 4 percent.”
The CFO further said that, “We expect this dispersion to continue, as the subsidiaries consolidate on their share of the various markets.”
Also airing his views on the results, the Group Managing Director/CEO of UBA, Mr Kennedy Uzoka, stated that, “I am pleased with the half performance of the Group, having delivered 14 percent growth in gross earnings and 21 percent growth in profit before tax.”
He said, “Despite the subdued yield environment in some of our large markets, we achieved a 9 percent growth in interest income and defended the net interest margin.
“We also achieved a 39 percent growth in our electronic banking revenues, as we broaden and deepened our digital banking play across Africa. Revenues from our remittance and funds transfer businesses grew 69 percent and 53 percent respectively. All these factors attest to the efficacy of our strategies and the resilience of our business model.”
Mr Uzoka expressed optimism that the “ongoing group-wide transformation program will in the quarters ahead, enable the bank deliver substantial operational efficiencies and best-in-class customer service, which will ultimately boost earnings.”
According to him, “We sustained our asset quality with the NPL ratio down to 5.62 percent, from 6.45 percent as at 2018FY. We will continue to adopt best practice standards to grow and manage the portfolio in the quarters ahead.”
An analysis of the half-year financial income of UBA showed impressive growth across key performance indices as well as a significant contribution from its African subsidiaries.
In spite of the increasingly unpredictable environment witnessed in some of its countries of operations, the pan African financial institution delivered double digit growth in its profit before tax as it rose by 21 percent to N70.3 billion for the half year to June 2019, up from N58.1 billion recorded in the similar period of 2018, just as the profit after tax also improved to N56.7 billion, a 29.6 percent growth compared to N43.8 billion achieved in the corresponding period of 2018. The profit for the first half of the year, translated to an annualised return on average equity of 21.7 percent.
The financial statements further revealed that UBA recorded a 14 percent year-on-year rise in top-line, with gross earnings of N293.7 billion, compared with N257.9 billion recorded in the corresponding period of 2018.
Analysts say that this result emphasises the capacity of the Group to deliver a strong performance through economic cycles in spite of the overall challenging business environment.
As at 30 June 2019, the bank’s total assets grew by 4.8 billion, crossing the N5 trillion mark to N5.10 trillion, while customer deposits also rose by 4.8 percent to N3.51 trillion from N3.35 trillion as at December 2018. This growth trajectory underscores UBA’s market share gain, as it increasingly wins customers through its revitalized customer service culture coupled with innovative digital banking offerings. The bank’s shareholders’ funds remained strong at N542.5 billion, reflecting its strong capacity for internal capital generation.
In line with its culture of paying both interim and final cash dividend, the board of the lender declared an interim dividend of 20 kobo per share for every ordinary share of 50 kobo each held by its shareholders.
UBA, which prides itself as Africa’s global bank, was founded 70 years ago in Nigeria and today, operates in 20 African countries and in the United Kingdom, the USA and with presence in France.
The financial firm serves over 17 million customers across the globe with more than 1000 branches and touch points. In 2018, the bank received the award of Africa’s Best Digital Bank by the Banker’s magazine.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
