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UBA Group Starts Strong in 2018, Grows Profits to N26.6Bn in Q1

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United Bank for Africa Group (UBA, Pan African financial institution, has released its unaudited first quarter results, showing significant growth across major income lines.

 

Following a sterling performance in the 2017 financial year, UBA Group delivered another impressive 18% percent year-on-year growth in gross earnings in the first three months of 2018.

 

Leveraging on strong growth in both interest and non-interest income, UBA grew top-line to N119.4 billion in the first three months of the year, ending March 31st 2018 and the Group recorded N26.6 billion in profit before tax, compared to N25.5 billion achieved in the first quarter of 2017.

 

The Group also recorded a profit after tax of N23.7 billion in the first quarter, an impressive 6.2 percent year-on-year growth compared to N22.4 billion achieved in the corresponding period of 2017. The group sustained its strong profitability recording an annualized 18% Return on Average Equity (RoAE).

 

Driven by an 18% year-on-year growth in interest income, UBA Group recorded an 18% percent year-on-year growth in gross earnings to close at N119.4 billion for the three months period ending March 2018, compared to N101.2 billion recorded in the first three months of the year 2017.

Kennedy Uzoka, GMD/CEO of UBAKennedy Uzoka

Mr. Kennedy Uzoka, Group Managing Director/CEO of the United Bank for Africa (UBA) Plc, expressed satisfaction with the Bank’s impressive performance in the first quarter of 2018, despite intensifying competition and moderation in yield environment in Nigeria and Ghana.

 

“This set of first quarter result is a good start to the year and a reflection of our capacity to sustainably grow earnings over the medium to long term. We recorded 18% growth in gross earnings, as both interest and non-interest income grew 18% and 19% respectively. Notwithstanding the moderation in sovereign yield in Nigeria and Ghana, we achieved a 60bps improvement in net interest margin (NIM) to 7.6%, as we extract efficiency gains from balance sheet management,” Uzoka said.

 

“I am particularly pleased with the 8% year-to-date growth in our retail deposit, as it reflected the benefit of improved customer service and continued customer acquisition. We are committed to exceeding our 2018 deposit growth target in the year, with strategic focus on retail, low cost savings and current accounts, which is critical to sustaining our NIM uptrend,” he explained.

 

He said, “We are committed to responsible lending, as we seek to maintain our asset quality. We achieved a 40bps year-on-year savings in cost of risk, a reflection of the quality of our loan portfolio.

 

He expressed confidence on the steady recovery of the Nigerian economy and improving fundamentals of most African countries, where the bank operates.

 

Uzoka emphasized the increasing relevance of its African operations to its bottom line, adding that, “Reflecting our market share gain, we have grown the balance sheet by 6% in the first three months of the year, as we increasingly become systemically important across the 19 other African countries, where we operate. Barring unforeseen circumstances, we look forward to sustaining this strong performance through the year, with the primary objective of delivering superior return to our shareholders.”

 

Also speaking on UBA’s financial performance and position, Ugo Nwaghodoh, Group CFO said Management is committed to delivering on the Group’s financial goals for the year.

 

He said, “We are diligently executing our priorities for the year, as we focus on profitable growth. We are making strong progress in Nigeria, where our continuous market share gain is translating into higher profit. We grew non-funded income by 20%, driven by annuity-type offerings in digital banking. Precisely, the electronic banking income grew 33% year-on-year and we recorded an impressive 40% growth in trade service income, as customers become loyal ambassadors of our enhanced service channels and customer service.”

 

Continuing, he stated, “I am pleased that our drive towards optimal scale across our subsidiary operations is progressing well. More importantly, the contribution of these foreign operations to the Group’s profit is impressively reflective of geographic diversification.

 

“We remain resolute on our determination to leverage growing scale across our foreign operations to extract further cost efficiency, with the objective of moderating our cost to income ratio. More so, our profitability in the first quarter of the year reinforces the Group’s capacity to deliver on target, as our profit for the period translates to 18% return on average equity” Nwaghodoh s

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E-Financial

UBA Customers Win N30m in Wise Savers Promo, N90m Still Up for Grabs

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Group Executive, Digital & Consumer Banking, United Bank for Africa (UBA) Plc, Anant Rao; Officer, Consumer Protection Council (CPC), Abideen Onifade; Executive Director, UBA Plc, Liadi Ayoku; Regional Head Lagos, UBA Plc, Aminat Tunji-Akinwande; Head, Retail Liabilities, UBA Plc, Tomiwa Sotiloye; and Marketing Monitoring and Enforcement Officer, National Lottery Regulatory Commission, Nwanneka Ezeani, at the First Quarter Draw of UBA Wise Savers Promo where 20 Savings Account Holders won N1.5m each, in Lagos on Tuesday

United Bank for Africa (UBA) Plc, Pan-African financial institution, has rewarded 20 loyal customers with N1,500,000 each, in the first edition of its quarterly draw for the ongoing UBA Wise Savers Promo, which was held at the bank’s headquarters in Lagos on Tuesday.

 

At the event, a total of N30,000,000 was won by 20 lucky customers who were selected following a draw that was witnessed by key regulatory officials including representatives of the National Lottery Regulatory Commission, (NLRC); Lagos State Lottery, Board, (LSLB) Consumer Protection Council (CPC) as well as members of the media.

 

To qualify for the draws, new and existing customers of the bank are expected to save at least N10,000 each month for three consecutive months, or N30,000 for 90 days in the  promo, which will run for the rest of the year. Apart from the N30 million won by 20 customers on Tuesday,  another N90 million is still expected to be won by 60 more loyal customers in the remaining three quarters of the year.

 

The winners, who cut across all regions of the country, are: Nnadumije, Ebube Dawn; Onwochei Christiana Okwukwe; Eze Mathias Nnaji; Christian N Orie; Uka, Okwudiri; Okata Stephen Uche; Okafor Onyinye Esther; Nwanekezi Chimezie Jude; Ayomide V Yahaya and Olanegan, Oyetunde Keji.

 

Others are Emmanuel Onu Chidozie; Mohammed Fatima; Aminu, Mustapha; James Nanre; Pahinti Albert; Emmanuel O Adeniji; Jaki Movihinze Mercy; Saminu Muritala Mohammed; Ezeh Raphael Uballa; Uchenna Iheji.

 

When contacted on the phone, one of the 20 lucky winners; Nnadumije, Ebube Dawn, excitedly  expressed gratitude to the bank and said he was happy to be a customer of the bank. He thanked the bank, and said the move was thoughtful and will help to enrich customers especially during these trying economic times.

 

Mr. Anant Rao, Group Executive, Digital and Consumer Banking who addressed participants at the event, said the promo was launched as part of the bank’s initiatives towards prioritising customers.

 

He added that customers who save consistently would be rewarded in order to promote the financial inclusion initiatives of the bank.

 

‘We believe it is time we rewarded our customers who have been very loyal over the years. Without them, we would not have made the giant strides attained thus far’ .

 

According to Rao, “Because our customers are invaluable to all that we do, we listen and give them nothing short of the best that they deserve’

 

“We remain committed to consistently improving customer service and rewarding our loyal customers. The Wise Savers Promo seeks to compliment current initiatives aimed at growing savings,” he noted.

 

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E-Financial

CBN, SEC Grant Approval in Principle to Access, Diamond banks’ Merger

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Access Bank and Diamond Bank Plc have obtained approval in principle from the Central Bank of Nigeria and the Securities and Exchange Commission on their proposed merger plans.

Mr. Victor Etuokwu, Access Bank Executive Director, Personal Banking,  said in Lagos that CBN and SEC had granted both banks approval in principle for the merger process.

Etuokwu said that the banks were awaiting the final approval which would be granted after convening shareholders meeting.

“So far, we have gotten approvals up to approval in principle. There are three approvals that we need for this process.

“The first one is the pre-order approval which is like the first approval, the next approval is the approval in principle.

“The final approval comes after approval in principle and it will come after you have convened your shareholders meetings,’’ Etuokwu said.

He said that the banks would convene shareholders meetings in February, noting that the approval would be taken to court once approved by the shareholders.

Etuokwu said all the processes including final approval would be completed in the next 60 days.

He said that the new bank would remain committed to retail and corporate banking to drive financial inclusion for desired growth and development.

“We need to invest in retail market to drive economic growth, this is what the new bank will do, a strong corporate and a strong retail bank,’’ he said.

On staff retrenchment, Etuokwu said that members of staff would be retrained for different roles in case of overlapping.

“Staff will be retrained for new roles where there are overlaps, one of the branches can be converted to an e-branch or Automated Teller Machine gallery,’’ he added.

Mr Robert Giles, in charge of Retail, Diamond Bank said that integration of both banks had commenced for seamless service delivery.

 

Giles said that ATMs of both banks could be used by customers at no cost, noting that they were committed at taking costs away from customers.

Access Chief Executive Officer, Mr. Herbert Wigwe, at a joint news conference recently said it had already finalised terms and obtained regulatory approvals for a Tier II capital issuance to raise $250m available for draw down in January 2019.

He said that the bank had also obtained “No Objection’’ from the CBN to undertake a Rights Issue to raise up to N75bn or $207m in the first half of 2019.

Wigwe said that shareholder approvals and other regulatory approvals to that effect would be obtained before the offer opens.

He noted that the fund raising exercise would accelerate the capital management plan to support retail growth previously set out in the bank’s five-year strategy.

Wigwe said that the bigger entity was ready to absorb the staff of Diamond Bank at the completion of the deal by end of Jun, without any disengagement.

 

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E-Financial

Zenith Bank Excites Customers with Account Blocking Code

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Zenith Bank has introduced Account Blocking code 966911#, which now allows customers who suspect their accounts have been compromised, or who lost/misplaced their debit (ATM) cards to dial the Block Account Code on the phone numbers registered with the account to secure their funds.

 

This has become necessary as the bank plays deeper into the retail end of the banking industry, using its top notch technology and array of innovative products as it works to deepen financial inclusion in conjunction with regulators of the nation’s financial system regulators.

 

Other codes as part of the Eazy Way banking offered by Zenith Bank include the 966# to ease account opening process by potential customers; while checking account balance has never been easier than dialing *96600#.

 

Customers who desire to reset their Personal Identification Number (PIN), or Password, the bank continued, can do so from the comfort of their homes with 96660#.

 

To update Bank Verification Number (BVN), the statement said customers can dial 966BVN#; and dial 966AmountMobileNo.# to buy airtime. By dialing 966AmountAccountNo.# for funds transfers.

 

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