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The United Bank for Africa Plc has expressed confidence in its ability to meet the new capital base specified by the Central Bank of Nigeria.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, in a statement issued on Sunday, disclosed that the banks’ local and international investors during its 2023 Full Year Investors’ Conference Call on Friday, following the release of the bank’s financial result for the year ended December 31, 2023.
The GMD said that UBA remains among the top capitalised banks, and he added that the bank is actively exploring a well-defined strategy to boost its capital base and ensure compliance within the regulatory time frame.
The GMD said that at the end of the 2023 financial year, UBA recorded an impressive leap in gross earnings, as it grew from N853.2bn to close at N2.08tn; representing a strong 143 percent growth; total assets also rose remarkably by 90.22 percent, to close at N20.7tn up from N10.9tn in 2022.
He said UBA’s profit before tax grew by 277 per cent, to close at N757.7bn, up from N200.9bn recorded in 2022; while profit after tax increased by 257 per cent from N170.2bn in 2022, to N607.7bn.
Explaining how the banking group intends to manage the risk of Non-Performing Loans in the face of the harsh business operating climate in Africa, Alawuba, indicated plans to employ proactive credit monitoring, restructuring strategies for at-risk loans, and increased provisioning coverage.
“We expect to keep NPLs at 4.5 per cent for the 2024 full year. This commitment to credit quality is to further strengthen our ability to support our customers, and protect shareholders’ value while contributing to overall economic activity, even in a dynamic economic environment,” he explained.
The UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, in his comments, was confident of an even better performance in the 2024 financial year and pointed out that with its growing investments, both in technology and IT Security, the bank is well on its way to ensure growth in its business.
“The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth,” Nwaghodoh stated.
