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UBA Sustains Growth Momentum, Posts N290Bn Earnings in FY2014

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United Bank for Africa (UBA) Plc has released 2014 full year audited results showing that consolidation of its African operations and enhanced productivity across the group are sustaining the Bank’s growth momentum. 

The results of the Pan-African Bank, released on Wednesday at the Nigerian Stock Exchange (NSE), show a 10% growth in gross earnings to N290bn.

In other indices, the Bank recorded a Profit-Before-Tax of N56.2 billion and a Profit-After-Tax of N48bn. Earnings received a boost from both Interest and Non-Interest Income showing the Bank’s diversified and stable income base. 

 Interest Income rose 5.91% to N197 billion in December 2014 from N186 billion in December 2013, while Non-Interest Income rose by 18.17% to N93.3 billion from N79.0 billion.

Ugo Nwaghodoh, group chief financial officer (GCFO), expressed optimism that the Bank will continue to record a steady and sustained increase in its profitability by leveraging on low cost stable funds as well as rising opportunities in the Bank’s target markets in Nigeria and across Africa. 

“The performance of our African business was boosted by increased cross selling of our products and a number of other strategic initiatives. As we gain critical mass in the African market, we look forward to increased earnings in line with the diversification of our business across Africa” explained Nwaghodoh.

Customer deposits in the Bank in the period under review remained stable at N2.17 trillion in 2014.  Buoyed by this stability, UBA expanded its support for businesses on the continent by increasing its loan book by 14% to N1.072 trillion in 2014.

“We expanded our loan book without compromising our focus on asset quality. Notably, our non-performing loan ratio remains one of the best-in-class at 1.6%, as we responsibly grew risk assets in line with our defined risk appetite and target markets” said Mr. Phillips Oduoza, group managing director/CEO,.

The Bank was also able to grow shareholders’ fund significantly by 13% to N265 billion in 2014 from N235 billion in 2013, with a capital adequacy ratio above regulatory requirement.

“We will leverage on our adequate capitalization and liquidity to grow market share across target business lines” said Oduoza.

UBA also announced that it is paying a proposed cash dividend of N0.10 per share in a move, the Board says, is to effectively reflect the balance between giving short term return to investors and the commitment to create sustainable long term value to all shareholders.

“In arriving at the N0.10 proposed dividend, the Board considered a number of factors including shareholders dividend expectation, capital requirements for growth opportunities, and increasing regulatory capital requirements under Basel II. The board decided in favor of relatively higher earnings retention to strengthen the capital base, in line with the strategic goal of increasing our share of the market across all our business segments. We remain committed to creating sustainable long term value to all shareholders”, said Oduoza.

United Bank for Africa Plc is one of Africa’s leading financial institutions offering banking services to more than 8 million customers across 605 Businesses Offices in 19 African countries and three global financial centres. With presence in New York, London and Paris, UBA connects people and businesses across Africa by offering innovative products across all market segments.

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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