• We’re Awaiting SEC Approval Of Our Recapitalisation Plan- Alawuba

Encouraged by the robust growth across key corporate health indicators for the half-year ended June 30, 2024 released recently, the management of United Bank for Africa Plc, on Thursday revised its projections upward.

In his presentation during an investors’ call, Group Managing Director and Chief Executive of UBA Plc, Oliver Alawuba, forecast that deposit from its over 35 million customers across 1,000 business offices could grow by as much as 45% at year end December 31 from 33.7% at the end of June.

He also expects the loan book as it contributes to the economy of 20 African countries especially, to hit 40%, from the 26.1% at half-year.

The management had earlier forecast a 20% growth in deposit base for the year 2024, just as the loan book, in what Alawuba linked to the group’s “proven resilience, strong capital position, and market-leading capabilities.”

These, he said, has 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, cost of risk is however expected to rise to 2.8% from the 1.8% half-year level, a target that is better than the 3.8% projected at the beginning of the year.

The group, he said, has mixed its target of taming Non-Performing Loan Ratio to 4.5%, as it stood at 6.2% at half-year, and is seen growing slightly higher to close the year at 6.8%.

Return o Average Equity, which fell to 25.2% at half-year, missing the 30% target for the year is expected to rise to 28% by end of this year; while Return on Average Assets may close at 2.8%, lower than the 3% target having achieved 2.6% at half-year.

Capital Adequacy Ratio for the group is expected to drop to 28% by year-end from 28.3% in June, both of which are lower than the 30% targeted at the beginning of the year.

Cost-to-income ratio (ex-impairment) is seen closing the year at 50% by December, marginally dropping from 50.2% six months earlier; compared to the 45.1% initial target for the year.

At year-end, Net Interest Margin is seen improving to 8.5% from the 7.5% set at the beginning of the year and 8.3% recorded at half-year, Alawuba said.

The GMD assured participants in the investors’ call that the group has reached the advanced stage with its recapitalization process in line with the directive of its primary regulator- the Central Bank of Nigeria (CBN).

“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.

Investdata News recalls that following the release of the audited result for the half-year ended June 30, 2024, with the group offering an interim dividend of N2.00 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, he was quoted as saying in a statement, “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% YoY to N675bn,” he added.

On the plans for the rest of the year, Alawuba said the group is intensifying “its customer acquisition drive. We are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience.”