Several big ticket transactions executed United Bank for Africa Plc in 2013, especially in the power,
oil and gas sectors have led to a significant expansion of its loan book
by 42% to a new high of N937 billion in 2013.
oil and gas sectors have led to a significant expansion of its loan book
by 42% to a new high of N937 billion in 2013.
Phillips Oduoza,GMD/CEO, UBA Plc
The bank’s full
year financials released to the Nigerian Stock Exchange (NSE) confirms
management assurance made in early 2013 to increase its lending support to
critical sectors of the Nigerian and African economy. UBA Plc has business
operations in 18 other African countries outside Nigeria.
year financials released to the Nigerian Stock Exchange (NSE) confirms
management assurance made in early 2013 to increase its lending support to
critical sectors of the Nigerian and African economy. UBA Plc has business
operations in 18 other African countries outside Nigeria.
Phillips Oduoza,
GMD/CEO UBA Plc, had revealed in 2013 that the bank committed $700 million in
funding to the power sector privatization exercise in Nigeria, financing
different investors to acquire the power assets put on sale by the Federal
Government of Nigeria (FGN).
GMD/CEO UBA Plc, had revealed in 2013 that the bank committed $700 million in
funding to the power sector privatization exercise in Nigeria, financing
different investors to acquire the power assets put on sale by the Federal
Government of Nigeria (FGN).
Some of the major
deals UBA actively participated in the power sector include taking up $120m
(N19.44bn) of the financing in respect of Transcorp Ughelli Power Plant.
deals UBA actively participated in the power sector include taking up $120m
(N19.44bn) of the financing in respect of Transcorp Ughelli Power Plant.
The bank also acted
as Mandated Lead Arranger, underwriting the entire facility of $122m (N20bn)
for Kann Utilities’ acquisition of the Abuja Electricity Distribution Company,
financing the payment of 75% acquisition of 60% equity stake in Ikeja
Electricity Distribution Company while the bank also threw its
financial weight behind Aura Energy for the Acquisition of Jos Electricity
Distribution Company, acting as the lead arranger for N9.6 billion to finance
the payment of 75% of Aura’s 60% equity stake in Jos Electricity Distribution
Company.
as Mandated Lead Arranger, underwriting the entire facility of $122m (N20bn)
for Kann Utilities’ acquisition of the Abuja Electricity Distribution Company,
financing the payment of 75% acquisition of 60% equity stake in Ikeja
Electricity Distribution Company while the bank also threw its
financial weight behind Aura Energy for the Acquisition of Jos Electricity
Distribution Company, acting as the lead arranger for N9.6 billion to finance
the payment of 75% of Aura’s 60% equity stake in Jos Electricity Distribution
Company.
UBA also
successfully arranged debt financing of US$68m as well as secured equity
investment from a strategic and technical investors for the acquisition of the
Shiroro Hydroelectric Power Plc by North South Power Company Limited.
successfully arranged debt financing of US$68m as well as secured equity
investment from a strategic and technical investors for the acquisition of the
Shiroro Hydroelectric Power Plc by North South Power Company Limited.
The significant
increase in lending had a positive impact on the bank’s released financials
with interest income rising significantly by 23.8% to N186 billion while
fee and commission based income rose 5.1% to N50.01 billion. The bank’s lending provides a source of consistent cash flows into the future.
increase in lending had a positive impact on the bank’s released financials
with interest income rising significantly by 23.8% to N186 billion while
fee and commission based income rose 5.1% to N50.01 billion. The bank’s lending provides a source of consistent cash flows into the future.
Analysts were also
impressed with the bank’s lending process as despite the significant increase in lending
portfolio, the bank has been able to reduce the incidence of non-performing
loans on its books well below the industry average and regulatory threshold.
The bank’s financial results shows that non-performing loans averaged 1.19% only in 2013, one of the lowest in the banking industry and well below the
regulatory threshold of 5%.
impressed with the bank’s lending process as despite the significant increase in lending
portfolio, the bank has been able to reduce the incidence of non-performing
loans on its books well below the industry average and regulatory threshold.
The bank’s financial results shows that non-performing loans averaged 1.19% only in 2013, one of the lowest in the banking industry and well below the
regulatory threshold of 5%.
Loan to deposit
ratio at 44.3% also represent a significant low in the banking industry, giving it
strong headroom to keep expanding its lending portfolio. The financials also
showed a healthy liquidity position with a liquidity ratio of 55% as at full
year 2013, well above the regulatory minimum of 25%.
ratio at 44.3% also represent a significant low in the banking industry, giving it
strong headroom to keep expanding its lending portfolio. The financials also
showed a healthy liquidity position with a liquidity ratio of 55% as at full
year 2013, well above the regulatory minimum of 25%.
UBA’s full year
results shows gross earnings rose 20.24% to a new high of N264 billion in 2013
from N220 billion in full year 2012 while the bank announced a profit of N56.06
billion for the year, representing an increase of 7.8% over the N52.01
billion profit recorded in the corresponding period.
results shows gross earnings rose 20.24% to a new high of N264 billion in 2013
from N220 billion in full year 2012 while the bank announced a profit of N56.06
billion for the year, representing an increase of 7.8% over the N52.01
billion profit recorded in the corresponding period.
Speaking on the
results, Phillips Oduoza, GMD/CEO of UBA Plc, said that the bank’s
customer-focused, Corporate Banking and Treasury led business model drove its
success for the year.
results, Phillips Oduoza, GMD/CEO of UBA Plc, said that the bank’s
customer-focused, Corporate Banking and Treasury led business model drove its
success for the year.
“UBA had a good
performance for full year 2013. This performance puts us in a position to
continue to pursue our goal to achieve Industry leadership in the medium term.
We were also able to gain considerable strides in our project Alpha initiatives
by improving customer service delivery and leveraging our balance sheet to
participate in emerging growth sectors of the economy.” Oduoza explained.
performance for full year 2013. This performance puts us in a position to
continue to pursue our goal to achieve Industry leadership in the medium term.
We were also able to gain considerable strides in our project Alpha initiatives
by improving customer service delivery and leveraging our balance sheet to
participate in emerging growth sectors of the economy.” Oduoza explained.
The bank also
closed the year with a total assets of N2.64 trillion, an increase of 16.23%
over the N2.27 trillion in 2012 while total equity increase by 22.1% to N235
billion.
closed the year with a total assets of N2.64 trillion, an increase of 16.23%
over the N2.27 trillion in 2012 while total equity increase by 22.1% to N235
billion.
