United Bank for Africa (UBA) Plc has assured its local and international investors that it’s prudent focus on improved asset quality as well as the continuous adoption of strict cost efficient measures will help the bank achieve its objectives and priorities for the 2019 financial year and beyond.
This, the bank has said, will culminate into an institution with even stronger indices laced with the capacity to churn out strong double-digit growth in annuity-based trade services, enhanced offerings and improved customer service.
Already, the bank has instituted a number of enhanced risk management and control framework, which have in no small measure contributed to its financial performances and overall balance sheet growth over the years.
The Group Managing Director/Chief Executive Officer, Kennedy Uzoka, who noted this in a submission while presenting the bank’s 2018 full year results during an international investor/ analysts conference call last Thursday, explained that UBA’s well-diversified asset book supported by stable funding structure, placed it in a premium position to perform remarkably despite the falling economic indices in its operating environment.
He said: “In spite of slow recovery in economic activities in Nigeria (our single largest market), the Group’s total assets has grown by 19.7 per cent, driven largely by a strong deposit growth of 23 per cent, as the drive for retail deposits continue to yield desired results. Leveraging on enhanced customer service, the group grew retail deposits by 48 per cent, thus strengthening the funding base and providing the foundation for lower cost of funds in 2019.
“Notably, the growth in balance sheet also partly reflects the impact of exchange rate difference between the reporting dates (2017: N331/$ as against 2018: N359/$, as 37 per cent of loans and 27 per cent of overall balance sheet is foreign currency-denominated. The Group maintained its appetite for a well-diversified balance sheet, with over 60 per cent in liquid, low risk instruments.”
Uzoka explained to the investors that the bank recorded impressive growths achieved across major financial lines, recording a 48 percent year-on-year growth in retail deposits and improved CASA ratio to 77 per cent.
Posted by Juliet Ekwebelam
