Business
CEO Alawuba Tells Plan To Make UBA More Formidable
financial service group that has solidified its position as a leading institution
Oliver Alawuba, the Chief Executive Officer of United Bank for Africa (UBA), the financial service group that has solidified its position as a leading institution not just in Nigeria, but across the continent and beyond, has revealed the plan to transform it into an even more formidable global brand.
The helmsman at the market leader, catering to the needs of over 45 million customers across 20 African countries, as well as the United Kingdom (UK), United States of America (USA), France, and the United Arab Emirates (UAE), made the disclosure at the bank’s half-year 2024 investors’ conference held on Thursday, October 3, 2024.
The conference comes on the heels of the impressive half-year ended June 30, 2024, audited financial results that saw a 40% rise in gross earnings from N981.77 billion to N1.371 trillion—complemented by exemplary performance across key indicators, including a 134.3% increase in interest income to N1.003 trillion from N428.2 billion.
The Chief Executive Officer of the financial institution, whose tagline “one brand, global influence” defines its reach, highlighted ongoing efforts to build an even better bank to investors on Thursday.
“We continue to invest in building a better bank through improvements in people, processes, and technology,” the CEO of the bank, with passionate advocate of a better Africa, Tony Elumelu as Chairman, emphasized.
Providing more specific details of the strategy, the leader of the award-winning management team that propelled the bank to bag multiple awards, including Global Finance’s Best Bank in Frontier Markets, Best SME Bank in Africa, and The African Banker’s Regional Bank of the Year for West Africa, stated that “we recognize that people are our greatest asset. In 2024, we promoted over 2,000 employees and paid the 2023 bonus to eligible staff across Nigeria and UBA Africa.”
Checks revealed that with shareholders’ funds increasing by 74% from N2.03 trillion to N2.99 trillion in its latest audited financial results, UBA—based on approval by the Board of Directors—declared an interim dividend of N2.00 per share for every ordinary share of N0.50 each held by its shareholders. The gain represents a 300% increase compared to the N0.50 given in the same period in 2023.
Continuing on the plan to make the global powerhouse that is celebrating 75 years of operation more formidable, the CEO further highlighted that “our smart automation initiatives are simplifying service delivery” and went on to provide examples with “for instance, our website now offers self-service options for BVN (Biometric Verification Number) and NIN (National Identity Number), account updates, card blocking, and more. Additionally, a comprehensive review of our procurement process has led to significant cost optimization.”
Rounding off on the last of the three key focus areas, Alawuba asserted that “our ongoing investments in technology are enabling us to deliver superior customer experiences, drive operational efficiency, and unlock new growth opportunities.”
Adding that with increased collaboration with Telco partners pushing the funds under management beyond $1 billion, he emphasized that strategic partnerships—which have helped to enhance financial inclusion through impactful solutions such as micro-lending and savings products—remain central to the bank’s growth strategy.
Addressing huge expectations about planned capital raising, the lead man at the financial institution that has entered into a $6 billion agreement with the African Continental Free Trade Agreement (AfCFTA) to show commitment to the development of the MSME sector across the continent explained that the financial powerhouse is at an advanced stage of its recapitalization process.
“Our application has been submitted to SEC (Securities and Exchange Commission) and we expect their approval in the next couple of weeks,” he stated.
Checks revealed increased interest in UBA’s upcoming recapitalization is premised on different factors, with consistent profitability and intentional commitment to rewarding investors standing out.
The financial institution, which is one of six banks to sign a Memorandum of Understanding with the Pan-African Payment Settlement System (PAPSS), enhancing cross-border trade and financial integration across Africa, currently boasts a 37% growth in total assets from N20.7 trillion to N28.3 trillion, with strong customer relationships and the ability to capitalize on opportunities across geographies listed as key contributors.
