Banking: Oliver Alawuba, Takes UBA To A New Profit Level

By Stephen Ubanna

 Given the impressive performance of the United Bank for African, UBA plc, described as the leading bank   in the  African Continent in the first nine months of the 2023 fiscal year , may have informed why Oliver Alawuba, the bank’s Group Managing Director, GMD, and his Management Team ,  has  set a target of billion naira mark in its profit earnings at the end of  the 2023, fiscal year.  

 with a customer  base of over 25 million , across 1,000 business offices and customer touch points  in 20 African countries  and presence in in the North American country of the United States, US, city of NewYork, London, Paris and Dubai, the bank’s unaudited reports filed with the Nigerian Exchange Limited, shows that its Gross Earnings  as Profit Before Tax, PBT, between January and September, 2023,  was said to have hit  N502.1 billion compared to N138.49 billion   recorded during the same period in 2022,   showing an increase of 263%..

An elated Alawuba, the bank’s Chief Executive officer, CEO, had attributed the remarkable improved earnings to the impact of the harmonisation of the official and parallel popular, black market foreign exchange by President Bola Ahmed Tinubu, on assumption of office on May 29, 2023.  The UBA plc, boss was said to have also attributed the improved profit earnings of the bank ‘’to efficient balance book management and service-focused strategies’’.

 These does not take away other reasons such as the increased patronage of the bank from the banking public including corporate Organisations due to its excellent customer services, increased credit support to businesses, that was said to have been driven by efficient digital banking platforms and revaluation gains enhanced  by the bank’s global diversification  strategy initiated by past and present Management of the bank, with the support of the Board Directors.

Oliver Alawuba, GMD, UBA plc

Tbank’s Profit Tax, PX, was said to have risen to   impressively from N116 billion recorded within the first nine months of 2022 to N449.29 billion, which Alawuba, the CEO, had said ‘’massively surpassed its  annualised  return  on average equity  for the third quarter of the 2023, trading year  at 131% to 44.37%.

He may have gladdened the heart of the bank shareholders when he assured them that the Pan African Bank would continue to maintain a very strong balance sheet, with total assets rising to N16.24 trillion,  which according to him was much higher than the N10.86 trillion  that was said to have been recorded by the bank at the end of December 2022. 

There is no gain saying the  fact that the bank had benefitted  immensely  over the last nine  moths of 2023,   from its  technology  -led initiatives  that was said to have been targeted at ‘’improving  customer experience  over the last couple of years. This is evident as the bank’s customer deposits was said to have hit  N11.63 trillion , representing  an increase of 48.6%  over the N7.8 trillion  recorded  at the end of the 2022,, financial year.

More interesting about the activities of the UBA plc,  was that the   shareholders’  funds had continued to be on the increase over the years  which was said to have made it what it what it is ‘’a strong and viable bank. Going by the bank’s unaudited results for the first nine months of the 2023, financial results,  the shareholders’ funds have hit the  N1.77 trillion , up from  the N922.1 billion  , that was said to haven recorded by the bank I December, 2022,  thus reflecting  the Money Deposit Bank, MDB, strong capacity, according  capacity  for internal capital generation  and growth.  Alawuba, the UBA plc, boss may have sent a message to other competitors that the bank remain one to beat as it has continued to show remarkable  improvement  in performance  metrics  over a period , that reflects its commitment  and promise to delivering  quality services, value  to shareholders and  other stakeholders.

Speaking on plans  and the bank’s strategy to sustain  and surpass  the 2022 trading results at the end of 2023,  Alawuba, the GMD, of UBA plc,  was said to have told those that cares too listen that  ‘’the bank  will continue ‘’ to leverage  on its customer  -centric strategies , speed to market and innovation ‘’  to consolidate market share  in its various jurisdictions.

The UBA plc, GMD,pledge of the bank’s commitment  towards expanding  and deepening  its digital  and other  transactional  banking services  while building strategic  alliances  to take advantage  of emerging  opportunities in due time speaks volume.

Given the support of the Tony Elumelu led Board of Directors to the bank Management Team may have encouraged Alawuba, the GMD, to beat his chest that   the growth trajectory will be  sustained in this fourth quarter of 2023  as the bank remain focused  on consolidating  the gains  that had been achieved in  between January and September ,  2023,  in delivering  enhance returns to the shareholders, who are looking forward to  smiling to the bank to collect  their dividends.

Ugo Nwaghodoh,  the Bank   Executive Director,  Finance and Risks, who could not hide his feelings to be part of the new Management  taking it  to a new height in the nation’s banking industry  had said that the performance  of the bank in the third quarter of 2023, has given an insight to what the bank would achieve in the final quarter  of 2023.

The Uba plc,  Executive Director, had said that the third quarter financial results of the bank  demonstrates  ‘’its  strong  momentum to deliver continuous improvement  across its  businesses  and key performance metrics’’. This is ‘’ the reflective of the combined impact of the higher asset yields, modest funding cost and balance sheet optimisation of the bank’’, he had said.

In spite of the changes that had been introduced  in the country’s monetary and fiscal regimes  by the Tinubu’s Administration that is now being implemented by Michael Cardaso led Central Bank of Nigeria, CBN, who incidentally was a- one- time  Commissioner for Economic Planning and Budget in Lagos state under Tinubu, as governor of the state, Nwaghodoh, had said that  the bank  will remain committed  ‘’to driving  sustainable  and improved performance  across  its various business segments ‘’.Vintage UBA plc.

Recall that that CBN, had said that it will raise dollar supply I the official foreign exchange market   to meet the needs of importers and other stakeholders as the new Administration of Tinubu, on the advice of the Economic Management Team,  had lifted  the ban  on 43  items  that were  not qualified  for forex  at the official market for the eight years of former President Muhammadu Buhari’s Administration.  The decision was said to have come after the naira   had tumbled to N1050 to the US dollar at the both the Export and Import window and the black forex market. and the free fall had continued.

Note that despite the unavailability of forex for the importation of the banned items into the country, Nigerian s were said to have imported five items worth N543 billion in the first quarter of 2023, meaning more businesses and enhanced profit earnings for the banks with the implementation of the new monetary and fiscal policies being by the CBN.

Leave a Reply

Your email address will not be published. Required fields are marked *