UBA subsidiaries contribute 30% of total deposit base in Q2

United Bank for Africa (UBA), has announced that the bank’s African subsidiaries now account for over a quarter of its overall total deposit base, which is largely made up of low-cost savings and current account deposits.

The Group Managing Director/CEO of Pan African Group, Kennedy Uzoka made this disclosure during an investor conference call held recently in Lagos.

“I am particularly impressed by the performance of our business in Congo Brazzaville, where we doubled bottom-line, largely through transaction-based offerings.”

According to him, overall, the African business (excluding Nigeria) contributed a quarter of profit in the period, with a stronger outlook.

He pledged the bank’s commitment to consolidate its position across chosen markets, adding that the bank would penetrate the market through innovative, simple and convenient offerings.

Uzoka added that the bank would maintain its focus on profitable quality asset creation, even as it directs the bank’s growth appetite within prudent risk management culture.

“The banks strategy is hinged on a One-Point Agenda; tagged, ‘Customer1st,’ this follows that as banking increasingly gets commoditised, the customer will be the sole determinant of the banks’ growth and profitability

“Hence, to win in this evolving landscape, we have devoted our strategic initiatives to our customers, as every decision and action are being taken within the context of customer satisfaction and value addition.”

On the bank’s Q2 result, Uzoka noted that despite the volatilities in the macroeconomic environment, UBA delivered 18 per cent annualised return on average equity in the half year.

This result, he said, further underscores its ability to consistently deliver superior return to shareholders over the long term.

“ We are taking proactive actions that will strengthen our competitive edge and effectively position UBA as the most preferred Pan-African Bank.

“Notwithstanding the slowdown in broad economic activities in Nigeria and a number of other markets where we operate, we grew non-interest income by 12% to over N52 billion in the first six months of the year.

This impressive growth in non-funded revenue, which is better appreciated when put in the perspective of the zero-COT regime, which commenced at the beginning of the year, ” he said.

He disclosed that UBA grew deposits and loans by 16% and 25% respectively, reflecting the impact of Naira depreciation and increasing penetration of its African business.

According to him, the bank also maintained an optimally liquid balance sheet, as it positions its assets to ride the rising interest rate cycle.