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Elizabeth Chukwuma
• With the impressive dividend declared for the shareholders of the United Bank For Africa, UBA, plc, noted as a Pan African Bank, despite the Asian country of China, merged coronavirus, popular, COVID 19, which had crippled many businesses across the country, including having a toll on the financial institutions, the UBA, shareholders are optimistic of having good earnings in the future based on the earnins in the 2020, fiscal year.
Kennedy Uzoka, the Bank Managing Director and his Management Team, may have set the stage for the shareholders to earn good returns in the months ahead. This is because the Uzoka, led Management Team have established a diversified business model that ensures impressive performance even in periods of uncertainty, across its geographical network.
Elumelu, the Bank Group Chairman, may have gladdened the heart of the shareholders at its 59 Annual General Meeting in Abuja, the Federal Capital Territory, FCT, on Thursday April 1, 2021,when he disclosed that the bank has made strategic decisions that will strengthen its resolve ‘’to earn the industry leadership that it has envisioned in Nigeria, Africa and globally’’.
An elated Elumelu,who could not hide his feelings had said that the Bank spearheaded strategic investments inits digital banking and technology platforms to further promote self-service banking. Hear him: He further disclosed that the Bank has focused on enhancing the capabilities of its Staff through various online capacity development programmes,”
The business mogul noted that ‘’its African operations,ex-Nigeria, had contributedover 50% of the Pan African Bank profits for the 2020 fiscal year. This may have informed why he said, ‘’we are truly a pan-African bank.”
He explained that the bank remains committed to ensuring its viability amidst an ever-changing business environment and will continue to be a role model for African businesses by showcasing the best of Africa to the world. According to him,“the work the Bank have done in strengthening its governance structures Group-wide and in improving its business and operating models in 2020 speaks volume. He may have impressed the shareholders who were said to have shouted in thunderous ovation when he said that the Bank has been positioned to benefit from its recovery of debts trends and to achieve significant market share gains across all of itsour operations’’ in Nigeria, Africa and other parts of the world. Note that the Bank has established presence in 20 African countries, Unite Kingdom, France and The North American country of the United States, US, among others.
It is instructive to note that at the end of the Bank 2020 financial year, its profits grew phenomenally by 27.7 to N113.8 billion, compared to the N89.1 billion recordedin the 2019 financial year. The Bank profit before tax was also very impressive at N131.9 billion, compared to N111.3 billion at the end of the 2019 financial year.
The Gross earnings the Bank, the Group Chairman said, grew by 10.8% to N620.4 billion, compared to N559.8 billion recorded in 2019. The Bank total assets was said to have grown by 5.6 percent to an unprecedented N7.7 trillion for the 2020 fiscal year. ‘’This is a Commendable feat’’, remarked a shareholder.
In The bank, may have proposed a final dividend of N0.35 kobo for every ordinary share of 50 kobo, bringing the total dividend for the year to N0.52 kobo as the bank had paid an interim dividend of N0.17 kobo earlier in the year.
An eyewitness account disclosed that the shareholders at the meeting had commended the bank’s decision ‘’to plough-back some of its profits into its business consolidation, but however, called for ‘’the prudent and effective management of the Bank’s financial resources for all its businesses especially those with high shareholding rate such as UBA.
Sunny Nwosu, of the shareholders who was said to have been given the opportunity to speak at the meeting, may have spoken the mind of other shareholders when he showed encomiums on the Elumelu led Board of Directors and the Uzoka led Management Team for a job well-done
He was said to have advised the Bank Management Team to gear up efforts to increase sharholders dividends at the end of the 2021, financial year. Nwosu , had Commended UBA plc, for ensuring that the African subsidiaries performed well by contributing 55% to the Group’s business earnings.
Nonah Awoh, another shareholder, who was said to have agreed with the improvement recorded from the bank’s Ex-Nigeria’s subsidiaries, had encouraged the Uzoka led management team, ‘’to boost other subsidiaries with the needed resources to help them perform even better in the current financial year.
In apparent response to the shareholders’ comments at the meeting, the Uzoka, the bank Manging Director, who spoke on the reduced dividend pay-out this year, disclosed the drop in dividend pay-out this year was informed by the fact that the bank had decided to be conservative to further strengthen the business.
He said, that “as aFinancial institution that has been in operations for 72 uninterrupted years, UBA would want to continue to perform optimally. It is not surprising why the Bank was said to have used most of its funds to prepare for unforeseen challenges.
He noted that given the trajectory and the resilience of the Banking business, across African, he had assured the shareholders, ‘’we will meet and surpass the expectation of you our shareholders.” He may have put smiles on the face of the shareholders when he revealed that ‘’the Bank have recalibrated its business structure, starting from Lagos and extending to the South-South’’. He had said that the Management had bolstered them with the necessary leadership to achieve the Bank aim, stressing that with these measures that have been put in place, the business will give the rest of Africa a good fight.
There is no gain saying the fact that the Pan African Bank is ‘’connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services’’.
