April 15, 2024
By Kelechukwu Mgboji InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s leading lender, United Bank for Africa (UBA) Plc, has revealed its strategic roadmap to adapt to the evolving banking landscape while fortifying its growth prospects for the fiscal year, 2024.
In a statement over the weekend, the bank underscored its commitment to regulatory compliance and the creation of sustainable value, aiming to uphold its current growth trajectory and bolster shareholder confidence.
According to the statement, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, shared insights into the bank’s strategies during the 2023 Full Year Investors’ Conference Call following the release of its financial results for the year ending December 31, 2023. Notably, UBA demonstrated robust performance, with gross earnings surging to N2.08 trillion from N853.2 billion in 2022, marking an impressive 143 percent growth. Additionally, total assets escalated by 90.22 percent to N20.7 trillion, while Profit Before Tax (PBT) and Profit After Tax (PAT) soared by 277 percent and 257 percent, respectively.
Alawuba expressed confidence in UBA’s ability to meet and exceed its targets for the current fiscal year, attributing the bank’s strength to its diverse presence across Africa and beyond. Addressing the recent Central Bank of Nigeria (CBN) circular on minimum capital for banks, Alawuba affirmed UBA’s position as one of the top-capitalized banks, emphasizing ongoing efforts to bolster its capital base and ensure compliance within regulatory timelines.
Options under consideration include a rights issue or private placement, with the bank committed to keeping investors informed of developments.
Furthermore, Alawuba outlined measures to manage the risk of Non-Performing Loans (NPLs), including proactive credit monitoring, restructuring strategies for at-risk loans, and increased provisioning coverage.
UBA aims to maintain NPLs at 4.5 percent for the 2024 full year, underscoring its dedication to credit quality, customer support, and shareholder value protection amidst a dynamic economic environment.
Ugo Nwaghodoh, UBA’s Executive Director of Finance & Risk Management, expressed optimism for the upcoming financial year, highlighting the bank’s investments in technology and IT security to drive business growth while upholding robust compliance and risk management practices.
With a firm commitment to sustainable growth and prudent risk management, UBA stands poised to navigate regulatory changes, deliver value to stakeholders, and sustain its upward trajectory in the banking industry.
“The group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth,” Nwaghodoh stated.
