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UBA’s Diversified Business Model, Enhanced Digital Platforms Key to Financial Gains – Uzoka

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Kennedy Uzoka

Africa’s global bank, United Bank for Africa (UBA) Plc, has assured its shareholders and investors of excellent performance in the 2022 financial year, as the bank continues to deepen its foothold to reap the benefits of its investments in strong and innovative digital product offerings and expanded scope over the past few years.

The Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA) Plc, Kennedy Uzoka, noted that, together with its diversified business model and keen ventures into key markets in Africa and beyond, investors of the bank will enjoy huge financial benefits and dividends in the current financial year and beyond.

Uzoka said this during the Investors/Analysts Conference Call at the bank’s Head Office in Lagos, following the release of its results for the full year ended December 31, 2021. He explained that UBA’s diversification model remains one of its best growth strategies as seen from the huge contribution of its subsidiaries into the business in the last financial year.

“Considering the significant investment the bank has made over the years across the globe – this is about $105 million in 20 African countries, United Kingdom, France and the United Arab Emirates, and the fact that UBA is the only Sub-Saharan bank with a deposit-taking licence in the United States of America – We are indeed beginning to reap the benefits of our investments. It is expected that, as the operations continue to grow, the bank will be able to realise the full benefits of its investments in multiples and will thereby, deliver much higher dividend returns to shareholders in the years ahead,” Uzoka told the investors.

Breaking down the full year 2021 financial results to the investors, Uzoka pointed out that gross earnings rose significantly to N660.2 billion representing an increase of 7 percent compared to N616.8 billion recorded at the end of the 2020 financial year, whilst total assets grew by 11 percent to an unprecedented N8.5 trillion in the year under review, up from N7.7 trillion in 2020, marking the first time the bank’s assets will cross the N8 trillion mark.

UBA’s Profit Before Tax was impressive with a 20.3 percent growth to N153.1 billion, compared to N127.3 billion at the end of the 2020 financial year as Profit After Tax rose by 8.7 percent to N118.7 billion in 2021, compared to N109.2 billion recorded the previous year. As a result, the bank proposed a total dividend of N1.00, comprising an interim dividend of 20 kobo, already paid, and a final dividend of 80 kobo, to be presented to shareholders for approval at the 60th Annual General Meeting scheduled for April 7, 2022.

Continuing, the GMD explained that the quality of UBA staff, its portfolio, as well as the strength of the bank’s credit risk management frameworks and policies, remain the bedrock of the positive and sustained results of the bank, adding that “Our current performance highlights our customer focus leveraging our three levers, which are: people, process and technology; and so we see that as a well-diversified financial institution, UBA remains very strongly capitalised to take advantage of opportunities in the future.”

READ ALSO: UK Government Partners UBA Foundation, Others In £20m Drive To Support Girl-Education In Developing Countries

UBA’s Group Chief Finance Officer, Ugo Nwaghodoh, who also responded to questions at the conference call assured investors that the bank is committed to further strengthening its payments infrastructure to fully absorb the growing clientele in the digital space.

“Our records show a very well-diversified loan book across various critical sectors across the economies in which we operate and the diversification is in both industry sectors, across geographies and customer segments. We are reinforcing our digital banking and payment offerings as we continue to see a stronger proportion of non-interest income to total income in the days ahead,” Nwaghodoh said.

United Bank for Africa Plc is Africa’s global bank with a presence in the United States of America, the United Kingdom and France and more recently the United Arab Emirates. UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services.

 

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CBN Raises Benchmark Interest Rate To 13%

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CBN Raises Benchmark Interest Rate To 13%

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has raised benchmark interest rate to 13 per cent.

The Governor of the Central Bank, Godwin Emefiele, while reading the communique of the 142 meeting of the committee said the action was to tame the raising inflation rate in the country.

READ ALSO: CBN Warns Against Fresh COVID-19 Lockdown Retains Interest Rate At 11.5%

Emefiele, however, said the rate on development finance loans would remain at five per cent till 2023.

 

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CBN To Replace Paper Currency With E-Naira

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CBN To Replace Paper Currency With E-Naira

The Central Bank of Nigeria (CBN) has urged market men and women to sign into the e-Naira as paper currency will soon be out of circulation.

The Delta State Branch Controller of CBN, Mr Godwin Okafor, made the appeal on Friday at the popular Ogbogonogo market during the market sensitisation on e-Naira.
He urged traders to key into the Central Bank’s e-Naira policy.

He said: “We are here at the market today to sensitise the market people to the use of e-Naira. It is fully backed by CBN, unlike Bitcoin which has no legal backing.”

The consultant of CBN on e-Naira, Dr. Aminu Bizi, said Delta was chosen as the second state to sensitise market women to e-Naira after Lagos.

“We are here to sensitise market men and women, shop to shop on the use of e-Naira. CBN has gone behind ATM, POS, therefore, we are going to meet the Okada/tricycle union on this policy.

“Paper currency will soon be out of circulation because CBN spent money to print money and people abuse the currency in the market, spraying on occasions, payment of Okada/tricycle and others and CBN is losing”

READ ALSO: Why Newly Launched E-naira Speed Wallet Disappeared From Google’s Play Store – CBN

He said the use of e-Naira was effective, charges free unlike ATM and POS and cannot be hacked by fraudsters.

In his remark, the Secretary to the State Government, Chief Patrick Ukah, applauded CBN for the e-Naira initiative.

Ukah who was represented by the Director of Finance and Account in the office of SSG, Mr. Benson Ojoko, said the state was delighted with CBN programmes, describing e-Naira as a laudable programme that has placed Nigeria in international finance.

 

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Bitcoin Value Drops By 50% Since November Peak

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Bitcoin Value Drops By 50% Since November Peak

The value of Bitcoin has dropped below $31,000 (£25,140) – less than half of what it was at its peak last November, according to the Coinbase cryptocurrency exchange.

The fall of the world’s largest cryptocurrency by market value comes as stock markets around the world have also tumbled in recent days.

On Monday, key European, Asian and US indexes slid lower again.

Investors are fleeing riskier assets for safe havens like the dollar.

On Monday, Japan’s Nikkei index dropped 2.5%, while London’s FTSE 100 closed down more than 2%. In the US, the Dow fell nearly 2%, the S&P 500 dropped 3.2% and Nasdaq lost 4.3%, deepening the falls in recent weeks.

READ ALSO: Why It Is Unsafe To Invest In Bitcoin Now – American Billionaire

Uber was among the companies driving the declines.

Shares in the company dropped more than 11% on Monday after media outlets reported that chief executive Dara Khosrowshahi had warned staff that investors were becoming more cautious about investments. He said Uber would respond by cutting costs and slowing its hiring.

“It’s clear that the market is experiencing a seismic shift and we need to react accordingly,” he wrote in the letter.

“The average employee at Uber is barely over 30, which means you’ve spent your career in a long and unprecedented bull run. This next period will be different, and it will require a different approach.”

In times of market uncertainty traditional investors will often sell what they see as riskier assets – like digital currency – and move their money into safer investments.

Moves in cryptocurrency markets have increasingly followed wider trends, as professional investors, such as hedge funds and money managers, become more active in trading what was once the domain of individual investors and enthusiasts.

Bitcoin, which accounts for about a third of the cryptocurrency market with a total value of close to $570bn, has seen its price plunge more than 10% in the last day and more than 20% in the last week.

READ ALSO: Ukraine Becomes Latest Country To Legalize Bitcoin

Ethereum, the second biggest cryptocurrency in the world, has also fallen in value, down by more than 20% in the last week.

Volatile trading in digital assets has not been unusual in previous years, but much of 2022 had been relatively quiet for the cryptocurrency market.

Last week, central banks around the world, including the US, UK and Australia, raised interest rates as they attempt to tackle rising prices.

The US Federal Reserve raised its key lending rate by half a percentage point, marking its biggest rate hike in more than 20 years.

That has triggered more concerns among some investors that inflation and the higher cost of borrowing could have a major impact on global economic growth.

Investors are also worried about the impact of the war in Ukraine on the world economy.

READ ALSO: CAR Becomes First African Country To Adopt Bitcoin

Meanwhile, in the last year Bitcoin has become legal tender in two countries – El Salvador and the Central African Republic.

Since El Salvador said it would allow consumers to use the cryptocurrency in all transactions, alongside the US dollar, the International Monetary Fund has urged it to reverse its decision.

. BBC

 

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