Group Managing Director and Chief Executive of UBA Plc, Oliver Alawuba, has projected that the bank’s deposit from its customers across 1,000 business offices could grow by as much as 45 per cent from 35 million by year end.
Besides, the GMD assured participants that the group has reached the advanced stage of its recapitalisation process in line with the directive of its primary regulator- the Central Bank of Nigeria (CBN).
At an investors’ call held in Lagos, Alawuba said that the projected loan book which contributes to the economy of 20 African countries would hit 40 per cent, from the 26.1 cent at half-year.
The management had earlier forecast a 20 per cent growth in deposit base for the year 2024. He also linked the growth in the loan book to the group’s ‘proven resilience, strong capital position, and market-leading capabilities.’
These, he said, have positioned UBA Plc to continue its growth trajectory, helped by its focus on market leadership and delivering excellent customer experiences at every touchpoint.
According to Alawuba, the cost of risk is however expected to rise to 2.8 per cent from the 1.8 per cent half-year level, higher than the 3.8 per cent projected at the beginning of the year.
The group, he said, has missed its target of taming the non-performing loan ratio to 4.5 per cent, as it stood at 6.2 per cent at half-year, and is seen growing slightly higher to close the year at 6.8 per cent.
Return on Average Equity, which fell to 25.2 per cent at half-year, missing the 30 per cent target for the year is expected to rise to 28 per cent by the end of this year; while Return on Average Assets may close at 2.8 per cent, lower than the three per cent target having achieved 2.6.per cent at half-year.
The Capital Adequacy Ratio for the group is expected to drop to 28 per cent by year-end from 28.3 per cent in June, both of which are lower than the 30 per cent target at the beginning of the year.
The cost-to-income ratio (ex-impairment) is seen closing the year at 50 per cent by December, marginally dropping from 50.2 per cent six months earlier; compared to the 45.1 cents initial target for the year.
Net Interest Margin is seen improving to 8.5 per cent from the 7.5 per cent set at the beginning of the year and 8.3 per cent recorded at half-year, Alawuba said.
“Our application has been submitted to SEC (Securities & Exchange Commission Nigeria), and we expect their approval in the next couple of weeks following which the market will be advised,” he assured.
Following the release of the audited result for the half-year ended June 30, 2024, with the group offering an interim dividend of N2 for every 50 kobo share, the highest in the industry, Alawuba assured of the group’s commitment to consistently deliver value to its shareholders.
“UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction, and digital banking businesses across geographies in line with our strategic goals.
“The group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143 per cent YoY to N675 billion,” he added.
On the plans for the rest of the year, Alawuba said the group is intensifying its customer acquisition drive, adding that the bank is making significant investments in technology, data analytics, product research, and innovation to enhance its value proposition and customer experience.
