Pan African financial institution, United Bank for Africa (UBA) Plc. has identified its diversification model as one of the best growth strategies for the brand.
Group Managing Director/Chief Executive Officer, UBA Plc., Kennedy Uzoka disclosed this during Investors/Analysts Conference Call at the bank’s Head Office in Lagos, following the release of the bank’s results for the full year ended December 31, 2021.
Uzoka, said; “Together with our diversified business model and keen ventures into key markets in Africa and beyond, our investors will enjoy huge financial benefits and dividends in the current financial year and beyond.”
“Our diversification model remains one of our best growth strategies as seen from the huge contribution of its subsidiaries into the business in the last financial year.”
“Considering the significant investment the bank has made over the years across the globe – this is about $105 million in 20 African countries, United Kingdom, France and the United Arab Emirates, and the fact that UBA is the only Sub-Saharan bank with a deposit-taking license in the United States of America”
“We are indeed beginning to reap the benefits of our investments. It is expected that, as the operations continue to grow, the bank will be able to realise the full benefits of its investments in multiples and will thereby, deliver much higher dividend returns to shareholders in the years ahead.”
“Gross earnings rose significantly to N660.2 billion representing an increase of 7 per cent compared to N616.8 billion recorded at the end of the 2020 financial year, whilst total assets grew by 11 percent to an unprecedented N8.5 trillion in the year under review, up from N7.7 trillion in 2020, marking the first time the Bank’s assets will cross the N8 trillion mark.”
UBA’s Profit Before Tax was impressive with a 20.3 per cent growth to N153.1 billion, compared to N127.3 billion at the end of the 2020 financial year as Profit After Tax rose by 8.7 per cent to N118.7 billion in 2021, compared to N109.2 billion recorded the previous year.
As a result, the Bank proposed a total dividend of N1.00, comprising an interim dividend of 20 kobo, already paid, and a final dividend of 80 kobo, to be presented to shareholders for approval at the 60th Annual General Meeting scheduled for April 7, 2022.
Uzoka added that; “The quality of UBA staff, its portfolio, as well as the strength of the bank’s credit risk management frameworks and policies, remain the bedrock of the positive and sustained results of the bank.”
“Our current performance highlights our customer focus leveraging on our three levers, which are: people, process and technology; and so we see that as a well-diversified financial institution, UBA remains very strongly capitalised to take advantage of opportunities in the future.”