The Group Managing Director/ CEO of pan African pan group, United Bank for Africa, Kennedy Uzoka has said the bank’s African subsidiaries now account for over a quarter of its overall total deposit base, which is largely made up of low-cost savings and current account deposits.
Uzoka made this disclosure during an investor conference held recently. “I am particularly impressed by the performance of our business in Congo Brazzaville, where we doubled bottom-line, largely through transaction-based offerings”. Uzoka noted that, overall, the African business (excluding Nigeria) contributed a quarter of profit in the period, with a stronger outlook. “We will continue to consolidate our position across chosen markets, as we penetrate the market through innovative, simple and convenient offerings. We will maintain our diligent focus on profitable quality asset creation, as we situate our growth appetite within our prudent risk management culture”.
He Further explained: “that the bank’s strategy is hinged on a One-Point Agenda; tagged “Customer1st, this follows that as banking increasingly gets commoditised, the Customer will be the sole determinant of banks’ growth and profitability” . Hence, to win in this evolving landscape, we have devoted our strategic initiatives to our “Customers”, as every decision and actions are being taken within the context of customer satisfaction and value addition”.
“To this end, we are devoting reasonable resources at the same time leveraging our technology-driven CRMs towards increasing the depth of our understanding of customer preferences and changing needs. We want to be in the best position to predict the customers on their utility curve, so as to ensure we proactively offer forward-looking products and services that will create unique customer experience as well as beat expectations.
On the bank’s Q2 result, Uzoka noted that, despite the volatilities in the macroeconomic environment, which the bank is not completely immune to, he is happy to report that UBA delivered 18% annualized return on average equity in the half year. This result, he said, further underscores its ability to consistently deliver superior return to shareholders over the long term. “We are taking proactive actions that will strengthen our competitive edge and effectively position UBA as the most preferred Pan-African Bank. “Notwithstanding the slowdown in broad economic activities in Nigeria and a number of other markets where we operate, we grew non-interest income by 12% to over N52 billion in the first six months of the year. This impressive growth in non-funded revenue which is better appreciated when put in the perspective of the zero-COT regime which commenced at the beginning of the year, ” he said.
He disclosed that UBA grew deposits and loans by 16% and 25% respectively, reflecting the impact of Naira depreciation and increasing penetration of its African business. According to him , UBA, also maintained an optimally liquid balance sheet, as it positions its assets to ride the rising interest rate cycle.
“Worthy of mention, is that, we sustained our asset quality with an NPL ratio of 2.4% and prudent provisions coverage of 113%. Notwithstanding, the impact of Naira devaluation on risk weighted assets, the Bank’s BASEL II capital adequacy ratio at 19% remained strong and well above regulatory requirement, with most subsidiaries having capital adequacy ratio in excess of 20%. “
Uzoka expressed confidence that the bank will continually remain prudent and responsible in growing its risk assets, as well as remain committed to the quality of its balance sheet and overall health of the Bank. UBA, he continued, will continue to balance its growth appetite with the need to maintain good quality portfolio of assets. He added that , the hard work and concerted commitment of staff, Management and Board will once again be justified in sustaining strong performance, as the bank looks forward to delivering its strategic and financial targets.
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