Recapitalization: UBA unveils strategy for growth, says process at advanced stage
CHIGOZIE AMADI
Group Managing Director/ Chief Executive Officer of United Bank for Africa (UBA) Group, Oliver Alawuba has said that the bank is at advanced stage of its recapitalization process.
Alawuba who disclosed this at the UBA H1 2024 financial year investors’ conference, said the bank’s application has been submitted to Securities and Exchange Commission (SEC).
He said, “We expect their approval in the next couple of weeks following which the market will be advised.
“We entered the second half of 2024 from a position of strength. Our proven resilience, strong capital position, and market-leading capabilities position us to continue our growth trajectory.
“Execution will remain our driving force as we focus on market leadership and delivering excellent customer experiences at every touchpoint FY 2024,” he said .
According to him, the management will continue to invest in building a better bank through improvements in people, processes, and technology.
“We recognize that our people are our greatest asset. In 2024, we promoted over 2,000 employees and paid the 2023 bonus to eligible staff across Nigeria and UBA Africa (ex-Nigeria),” he said.
He said despite the challenging economic environment, it’s strong leadership, a dedicated team, supportive customers and a clear strategic direction have enabled the bank to achieve sustained and profitable growth in H1 2024.
He said, “We have remained focused on navigating these challenges while upholding the ideals of Enterprise, Excellence, and Execution (3 Es).Our commitment to these principles, encapsulated in our “EXECUTION” mantra, has brought us closer to industry leadership in several markets.
“Our financial performance reflects our unwavering focus on delivering value to our customers through our Customer-First (C1st) philosophy,” he said.
Giving the bank’s financial highlights for H1 2024, Alawuba said, UBA Group delivered strong double-digit growth across high-quality and sustainable revenue streams.
This performance, he said reflects the bank’s disciplined execution of strategic goals, focusing on balance sheet expansion, transaction banking, and digital banking businesses across our markets.
He said, the bank achieved a robust Profit Before Tax (PBT) of N401.6 billion, reflecting it’s ability to manage risks effectively amidst macroeconomic volatility.
“Our deposits grew by 34per cent from N17.4 trillion at year-end 2023 to N23.2 trillion in H1 2024, demonstrating the trust and loyalty of our customers.
“We saw a 37 per cent growth in total assets, reaching N28.3 trillion, up from N20.7 trillion at FYE 2023.
“This growth was driven by strong customer relationships and our ability to capitalize on opportunities across geographies.
“Our intermediation business posted impressive growth, with net interest income expanding by 143 per cent year-on-year to N675 billion, further underlining the strength of our core banking operations,” he said.
Speaking further, the UBA boss maintained that digital banking income surged by 107.8per cent YoY to N106 billion, while funds transfer and remittance fees rose 188.7per cent and 228per cent, respectively.
He said, “We continue to lead in digital banking and payment solutions, helping drive financial inclusion across Africa.
“Income from trade transactions grew 83per cent to N18 billion as we strengthened our role in facilitating intra-regional and international trade.
“Our strategy of investing in technology, innovation, and data analytics continues to yield significant returns, positioning us as a leader in digital transformation,” he said.
Also, the bank’s achievements have been recognized through multiple awards, including:Global Finance’s Best Bank in Frontier Markets,Best SME Bank in Africa,Best SME Bank in Mozambique,The African Banker’s Regional Bank of the Year for West Africa.
These accolades reflect its commitment to excellence and delivering sustainable growth across our markets.
In 2024, UBA was one of six banks to sign a Memorandum of Understanding with the Pan-African Payment Settlement System (PAPSS), enhancing cross-border trade and financial integration across Africa.
The bank successfully deployed instant payment systems in five African countries, with more to follow.
Also, its collaborations with Telco partners have also expanded, with funds under management now exceeding $1 billion.
The bank has also pledged to plant one million trees over the next one year as part of its environmental stewardship.
