Last week, pan-African bank, United Bank for Africa plc (UBA) released its 2014 full-year results, which showed a 14 percent year-on-year growth in its loan book to N1.12 trillion in 2014.
This is the first time the bank is crossing the N1 trillion mark in its loan book.
The loan growth was however broadly in line with management’s set target for the year. What caught the attention of analysts and investors was the quality of the loan book, which remains one of the best-in-class, as reflected in the low Non-Performing Loan ratio of 1.55 percent well below the CBN recommended maximum of 5 percent.
In its support to loyal customers in the corporate, commercial and retail segments of the African markets, UBA continues to grow loan portfolio in a responsible manner that ensures the quality of the assets and sustainability of its earnings.
“We expanded our loan book without compromising our focus on asset quality,” said the group managing director/CEO, Phillips Oduoza.
The bank focuses its lending on emerging growth sectors across the African markets; agriculture, manufacturing, resource-based sectors such as oil, gas and mining, information and communication technology, power and infrastructure.
UBA is considered by businesses on the African continent as a well-positioned partner for multinational corporates seeking opportunities in the diverse African markets.
UBA’s high-level liquidity and strong capital base make it the bank of choice for big-ticket transactions in the emerging African markets, where it continues to offer unique financial solutions to businesses and governments.
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“We continue to support Africa-focused businesses and governments, given our strong belief in the continent’s prospect. We believe the opportunities in Africa far outweigh the risks, given our on-the-ground experience in these markets. We, however, do not compromise our risk management criteria and selective approach to lending across all our target markets, as we focus on quality and profitable risk assets that fit into our sustainable growth principles and objectives,” Ugo Nwaghodoh, group chief financial officer, UBA, said.
Also speaking on the 2014 loan growth, the group chief risk officer, UBA, Uche Ike said the growth in the bank’s loan book was in line with it moderate risk appetite in the year 2014.
The bank is pleased with the quality of the risk assets created, as reflected in the low 1.55 percent NPL ratio and moderated 0.7 percent cost of risk, he said.
“These measures of asset quality are evidence of our investment in risk management; human capital and ERM tools. We will remain consistent in our responsible approach to lending, especially as we are conscious of macroeconomic headwinds in our core markets. We will continue to maintain a diversified portfolio, with strict concentration limits on obligors, sectors, market segments and markets. More so, we will be proactive than ever in our portfolio monitoring in the years ahead, as we are committed to being the industry benchmark on asset quality” said Ike.
UBA is one of Africa’s leading financial institutions offering banking services to more than 8 million customers across 605 businesses offices in 19 African countries and three global financial centres. With a presence in New York, London and Paris, UBA connect people and businesses across Africa by offering products across all market segments.
