As investors all over the world await the African global bank, the United Bank for Africa (UBA) its journey into the market very soon to raise capital in response to the new requirements of the Central Bank of Nigeria (CBN), the consensus of stakeholders is that the familiar exercise similar to many successful ones in the past, will not be an exception.
The move by UBA, presently celebrating its 75 years of quality service, is not just an opportunity to reward loyal customers through enhancement of stake, but also that of diversification of their income streams.
This is because an investment in Nigeria, for instance, means an investment in all its branches and business offices across the world.
UBA’s 75-year journey is marked by resilience, innovation, and dedication to African economic development.
Modernization and Transformation:
The banks has continued to record successes in all its outings which are anchored on cutting-edge technology
For instance , the bank successfully merged with Standard Trust Bank in 2005, acquired banks in Africa, expanded footprint to over 20 countries and still counting, ,implemented digital transformation, introduced online and mobile banking as well as the
UBA Foundation, focusing on education, health, and economic empowerment.
Its Pan-African posture and presence in over 20 African countries, has made it a pillar of some sort to individuals, corporate organizations, even governments, through loan syndication corporate social responsibilities as well as providing a vast network and diverse revenue streams, through private, public participation.(PPP)
The banks aggressive and strategic international expansion, manifests in its Presence in London, New York, and Paris which serve as enablers to global markets and investors.
Recent Achievements:
The bank has successfully issued $500 million Eurobond (2020) and the redemption of the 5-year Eurobond notes, as well as the raising of $300 million Tier 2 capital (2019).
There was also introduction of the artificial intelligence-powered chatbot, LEO as well as the bank being recognized as “Best Bank in Africa” by Euromoney (2020), among others
Balance Sheets:
As one of Africa’s foremost financial institutions, UBA has continued to Play prominent and leading role in the Nigerian banking sector, building bridges within and between Africans, Africa and beyond
Over the years, the bank has consistently delivered solid financial performance, underpinned by sound corporate governance, strong risk management practices, and a diversified portfolio.
In fact the bank’s strong balance sheets, typified by enhanced returns on investments on progressive basis, are indeed a promising indicator for business allies to stakeholders as well as successful capital raising to meet the new requirements.
Specifically, with a balance sheet growth of 90.2% year-over-year, reaching N20.7 trillion, and shareholders’ funds crossing N2 trillion, UBA PLC is well-positioned for further expansion
The bank’s impressive performance is also reflected in its profit before tax, which soared to N758 billion from N201 billion in the prior year. This remarkable growth is a testament to UBA PLC’s diversified business model, which includes a strong Pan-African and international strategy.
The bank’s commitment to sustainable growth, compliance, and risk management practices will continue to serve as positive testimonials for continuous growth and expansion to the benefit of stakeholders and economies of the countries where they operate
Impact Of UBA’s Foreign Forays On Operations:
The bank continues to celebrate and relish its forays resulting in diversified revenue streams.
It has also brought about reduction in dependence on Nigerian market, thereby mitigating risks associated with economic fluctuations.
Besides increased revenue, foreign operations continue to enhance its profitability and attractiveness to investors.
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Consequently, it exposes it to Foreign Capital Markets through bond issuances to raise capital from international investors, which have been successful and still counting.
Consequently, risks are spread across multiple markets, reducing UBA’s exposure to country-specific risks
This strategic approach has positioned UBA for success in meeting its capital requirements and driving its long-term growth, while risks are shared
UBA’s African operations contribute a substantial portion of the bank’s overall earnings, highlighting the profitability and resilience of its regional investments.
Central to this feat is the commitment and dedication of the board lead by African nationalist and global entrepreneure and banker, Tony Elumelu.
The bank had been blessed with forward looking and focused management team by successive committed bankers with Oliver Alawuba, presently as its Group Managing Director
“Our African subsidiaries have been a major driver of our growth, contributing over 50% of our profits.” said Alawuba in a recent interview.
“This underscores the strength of our pan-African footprint and the solid partnerships we have established across the region,” he added.
Corporate Governance:
UBA’s strong corporate governance is indeed a significant asset that has continued to sustain the bank and endear it to all its stakeholders.
This is because , the bank’s complete adherence to the tenets of this principle has brought transparency, accountability, and stability, making UBA more attractive to investors.
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Key Aspects Of UBA’s Strong Corporate Governance:
These are manifested in the appointment of Independent Board of Directors, clear separation of powers between Board and Management, robust risk management framework and transparent financial reporting.
They also include, strict compliance with regulatory requirements, strong internal audit and control functions and an enviable Whistleblower policy
On the whole, it has enhanced the bank’s credibility and trust with investors, improved transparency and accountability, increased attractiveness to institutional investors as well as competitive advantage in attracting top talent in a well balanced and gender sensitive manner.
In fact, the bank’s strong corporate governance has been recognized by rating agencies, demonstrating its commitment to best practices.
Why Invest In UBA?
The natural questions, even by stakeholders, would be, why invest in UBA?
Solid Financials: UBA boasts a sound balance sheet, consistently delivering strong financial performance.
Pan-African Reach: UBA’s African subsidiaries contribute significantly to the group’s profits, demonstrating the strength of its regional footprint.
Leadership and Vision: Under the leadership of Tony Elumelu, UBA has played a pivotal role in elevating youth entrepreneurship and economic development in Africa.
Commitment to Growth: The proposed capital raising will enable UBA to provide critical financing to businesses, driving growth across key sectors.
Strong Corporate Governance: UBA’s commitment to governance and risk management makes it a trusted partner for investors.
As UBA embarks on this new chapter of growth, the bank remains focused on its mission to be Africa’s global bank — providing innovative financial solutions, fostering entrepreneurship, and driving economic prosperity across the continent.
For discerning investors, seeking hassle-free with consistent and enhanced rate on investments, UBA presents itself as an irresistible and reliable business partner and an investment financial institution of choice.