‘African operations contribute 50% to UBA’s earnings’
United Bank for Africa (UBA) Plc said its African subsidiaries have weathered the initial challenge and are now on firm footing contributing close to 50 per cent of the group’s earnings.
The bank attributed the recent growth in earnings to the activation of digital offerings and products across the board, enabling the subsidiaries to increase market shares in their regions.
Executive Director/Chief Executive Officer, UBA Africa, Abiola Bawuah, disclosed this , while addressing media representatives across Africa during a hybrid media parley to mark Africa Day, last week.
Bawuah noted that notwithstanding the impact of devaluation and double-digit inflation rate across African countries where the bank operates, the subsidiaries have been performing well, contributing significantly to the growth and development of trade, infrastructure and finance in the regional economy.
“As at last month, none of our African subsidiaries is making a loss. They have all been turning in profits, this is a testament to the fact that they have navigated successfully and have all found their footing.
“And this extends to every one of them, even the ones in war-torn countries. Of course, we are aware that there is always room for improvement, but for now, we are glad that our 19 subsidiaries are out of the red zone,” the ED said.
In the area of infrastructure financing, she said UBA has been financing projects across Africa, which according to her is based on the conviction that the continent needs to bridge the infrastructural gap as a necessary step to achieving regional economic growth.
The bank, she said, has financed an African government in relocating its capital city, as it sees itself as an integral part of Africa’s rising.
Bawuah observed that foreign financial would not develop the continent, calling for the growth of pan-African funding that would be driven by local institutions.
“UBA has proven expertise and capacity in key sectors of economies across Africa, especially in oil and gas, infrastructure finance, agriculture and commodity/export, and these have positioned it as a preferred partner for structured solutions to key governments and corporates operating in/into Africa,” she said.
She told the journalists that in the last few years, the bank has invested heavily and supported key governments of various African countries with over $1 billion in infrastructural development, especially in roads, hospitals, health, power and other critical sectors.
According to her, the bank has contributed massively to promoting trade in Africa and has partnered with the African Continental Free Trade Area (AfCFTA), adding: “At UBA, we believe that our customers should be able to trade conveniently among themselves, and, so, we have been partnering with them in this area. We have made it easy for our customers across countries to trade easily within themselves, without having to bother about all the hassles that have to do with forex.”