Tony O. Elumelu, MFR

United Bank for Africa (UBA) Plc has released its financial results for the nine-months ended 30 June, 2009, with gross earnings rising significantly by 34 per cent to N160.6 Billion compared to N120.3 Billion recorded during the same period in 2008 while Profit from operations before tax and exceptional items remained strong at N33.695 Billion.The bank also made an exceptional provision of N21.5bn which according to information released at the Nigerian Stock Exchange floor on Friday, July 31, 2009, was a deliberate action to aggressively position and buoy its reserves for current and potential dimunitions in capital market exposures, loans and special assets. With this exceptional provision, its profit before tax and after exceptional items stood at N12.4bn.

The exceptional provision by the group is in line with its ongoing commitment to implementing a robust enterprise risk management system across its global operations. It must be noted that the bank recently embarked on implementation of International Financial Reporting Standards (IFRS) and BASEL 2. This entails an integrated implementation of key international best practices in risk management, financial reporting, internal controls and corporate governance

According to the Group Managing Director/Chief Executive Officer UBA Plc, Mr. Tony Elumelu, “the bank’s key performance indicators remain very strong with operating income up by 20%, liquid assets at N670bn, liquidity ratio at 41% (16% above regulatory minimum) while its deposit base remains one of the strongest in the country.”

He noted further that UBA has maintained the momentum of growth on its deposit base to N1.12 trillion rising from N834bn in 2008 with shareholder funds of N208 billion noting that this strong base will impact positively on the bank’s future results.

“We have been involved in strategic deals in recent times such as the US$265 million NNPC/Exxon Mobil Upstream financing with UBA as lead arranger, the N75bn Federal Government Agric fund inflow and the successful conclusion of the N18.5 billion Imo state bond issue. With this development, I am optimistic that this and other strategic alliances will readily provide UBA the platform for enhanced performance in future” he said.

As further recognition of UBA’s ability to support private and public enterprises across the African Continent, the African Development Bank (AfDB) recently granted UBA a US$150 million facility under its Trade Finance Initiative. This facility will be used to fund projects and trade finance operations in Africa and also provide the bank the leverage to deepen its play in the corporate banking space.

This facility is the largest commitment to a single bank in Africa by the development finance organization and is a testament to both UBA’s position as a pre-eminent African financial institution and ability to support trade business across the African Continent.

The Group also participated in the provision of a $151m facility for MTN Cote D’Ivoire.

United Bank for Africa (UBA) plc has consolidated its position as leading African banking brand with more subsidiaries springing up in different parts of the continent. In 2009 alone the bank has opened additional six subsidiaries across the continent growing its footprint on the continent to 12 with plans to be in 25 African countries by end of 2009. This is in addition to the bank’s presence in key international financial markets such as London, New York, and Paris.