TheNewsGuru

Tag: UBA

  • Fraud: UBA bans pornography, betting, other transactions with ATM card

    The United Bank for Africa, UBA, has place an indefinite ban on the use of its ATM card for certain transactions.

    These includes jewellry,
 pornography, dating and escort services betting.

    This was revealed in a statement by the bank to all its esteemed customers.

    The statement reads in part: “We wish to inform all cardholders that we have placed restrictions on the Bank’s debit and prepaid cards from carrying out transactions with merchants that are transacting on the following business categories, Jewellry,
Pornography,
Dating and Escort Services,
Betting (including lottery tickets, casino gaming chips, off-track betting and wagers).

    “This has become necessary with the increased need to protect our customers and the institution from fraud, litigation and reputational damages,” the statement reads.

     

  • UBA delivers stellar performance in half-year 2017, grows profit by 66%

    UBA delivers stellar performance in half-year 2017, grows profit by 66%

    …Declares N0.20 Per Share Interim Dividend

    …African Subsidiaries Contribute 32% of the Group’s Earnings

    The Pan African financial institution, United Bank for Africa (UBA) Plc has announced its audited half year financial results ended June 30, 2017, showing remarkable performance across major metrics.

    UBA grew its gross earnings for the period by 34.5 percent to N222.7 billion, as against N165.6 billion reported in June 2016. This impressive performance, which reflects the strong momentum of UBA’s business and its increasing share of customers’ wallet, was driven by the 44.3 per cent and 16.0 per cent growth in interest income and non-funded income respectively. The Group’s operating income stood at N161.8 billion, compared to N116.2 billion recorded in the corresponding period of 2016, representing a 39.2 percent growth.

    Notwithstanding the impact of Naira devaluation and double digit inflation in Nigeria and a number of other African countries where UBA operates, the Group managed through its cost lines to deliver a sterling Profit Before tax (PBT) of N57.5 billion, representing a significant growth of 65.5 percent over N34.8 billion recorded in the corresponding period of June 2016.

    In same vein, the Group recorded an unprecedented Profit After Tax (PAT) of N42.3 billion, translating to a 56.2 percent growth over the N27.1 billion recorded in the half-year of 2016. This profitability further reflects the earnings capacity of the Group and its capability to progressively deliver superior returns to shareholders.

    While the Group closed the half year with Total Assets of N3.69 trillion, a growth of 5.3 percent, it prudently grew gross loans to N1.6 trillion, a 4 percent growth when compared to the Group loan book as at 31 December 2016.

    Reflecting a strong capacity for internal capital generation, the Group’s Shareholders’ Fund grew by 8 percent to N483.1 billion, whilst it delivered an annualized 18.2% return on average equity (RoAE) and an Interim Dividend of N0.20 per Share.

    Commenting on the result, Kennedy Uzoka, the Group Managing Director/CEO, said that “the results again demonstrate the strong momentum of the Bank, as we deliver continuous improvement across our businesses and key performance metrics.”

    He further stated that the Bank’s “unwavering focus on customer service excellence is translating to strong operational and financial efficiency gains. We have achieved better pricing on assets and liabilities, leading to continued improvement in the net interest margin to 7.3%. Leveraging our service-focused strategy and treasury management, we grew non-interest income by 17% year-on-year, reinforcing our transaction-banking-led approach towards deepening financial inclusion in Sub-Saharan Africa.”

    According to him, UBA has made considerable progress in its retail banking penetration, gaining market share in deposits, at a time when a sizeable percentage of households are challenged due to inflationary pressures on disposable income. The Bank grew its retail savings and current account deposits by 23% and 5% YTD respectively.

    Also speaking on UBA’s financial performance and position, the Group CFO, Ugo Nwaghodoh said that the Bank had “a strong start in the year, despite protracted recession in Nigeria, our largest market. Our profit after tax of N42 billion translates to 18.2% return on average equity, broadly in line with our 2017FY guidance.”

    He further said that the Bank’s African subsidiaries (ex-Nigeria) contributed 32% of the Group’s earnings, leveraging on digital offerings to gain market share across the different markets. “We maintain our discipline of banking only quality and profitable assets, a conservative stance which reflects on our asset quality. Notwithstanding consistent liquidity mop-up by the CBN, we maintained an average balance sheet liquidity ratio of 42%. Further reinforcing the Bank’s capacity is the strong BASEL II capital adequacy ratio of 20%, which underpins our ability to grow, as the macro risks decline, he said”

     

  • Alleged hidden N249.6b: UBA refutes claim, says ‘We’ve fully remitted NNPC cash into TSA’

    United Bank for Africa (UBA) Plc on Friday faulted its inclusion by the Federal High Court in Lagos, in the list of seven banks keeping a total of $793,200,000 in contravention of the Federal Government’s Treasury Single Account (TAS) policy.

    TheNewsGuru.com reports that a vacation judge, Justice Chuka Obiozor, made the interim order following an ex parte application by the office of the Attorney-General of the Federation (AGF).

    The judge warned that the remittance order would be made permanent on August 8, unless cause was shown why it should not.

    The AGF, through his counsel, Prof. Yemi Akinseye-George (SAN), accused the commercial banks of illegally keeping the sums in their custody for “unknown government officials”.

    Justice Obiozor ordered the banks to remit the money to the designated Federal Government’s Asset Recovery dollars account domiciled with the Central Bank of Nigeria (CBN).

    The banks are United Bank for Africa (UBA), Diamond Bank Plc, Skye Bank Plc, First Bank Limited, Fidelity Bank Plc, Keystone Bank Limited and Sterling Bank Plc.

    However, UBA in a statement signed by its Group Head, Marketing & Corporate Communications, Bola Atta, said the bank had remitted the Nigeria National Petroleum Corporation (NNPC)/ Nigeria Liquefied Natural Gas (NLNG) cash to the TSA account since August last year.

    UBA denied currently keeping such fund, adding that the Central Bank of Nigeria (CBN) had cleared it of any wrongdoing after it remitted the fund.

    “Our attention has been drawn to the order of the Federal High Court in Lagos directing that seven commercial banks, including UBA Plc, temporarily remit a total of $793,200,000 allegedly hidden in contravention of the Federal Government’s Treasury Single Account policy, pending the determination of the suit filed by the Attorney General of the Federation on behalf of the Federal Government,” Atta said.

    “We wish to state categorically that UBA has fully remitted all NNPC/NLNG dollar deposits since August 24, 2016. We hereby emphasise that none of such funds are currently in the Bank’s books. Our action was further corroborated by a clearance memo published by CBN on its website on same date,” the statement said.

    A statement signed by then CBN Director, Banking Supervision, ‘Tokunbo Martins, said: Further to the directive of the Central Bank of Nigeria (CBN) to all Deposit Money Banks (DMBs) to return all outstanding un-remitted NNPC/NLNG foreign currency, this is to confirm that the United Bank for Africa (UBA) Plc has remitted all outstanding NNPC/NLNG deposits in its possession to NNPC’s Treasury Single Account (TSA) at the CBN”.

    “Accordingly, the United Bank for Africa (UBA) Plc has been readmitted into the Foreign Exchange Market effective Thursday, August 25, 2016,” Martins said.

    The bank thanked all its customers, business partners and other stakeholders who reached out to it on account of the judgment.

  • UBA increases international spend limit on Naira cards to $2000

    UBA increases international spend limit on Naira cards to $2000

    Pan-African financial institution, United Bank for Africa (UBA) Plc has announced an immediate upward review of the monthly international spend limit on its debit and prepaid Naira cards from $100 to $2,000.

    The upward review, which represents a marked increase by 1,900 per cent, allows customers to withdraw up to $2,000 per month as against $100 which was obtainable previously.

    This, the bank said, has been done in response to the growing demand for higher limits by customers who make international transactions. It is also an indication of the improved confidence in the Nigerian economy as shown by increased foreign exchange in the financial system.

    The Executive Director, Operations & Technology, UBA, Mr. Chukwuma Nweke, who announced the review, explained that the move is intended to enable more convenient and seamless transactions when making purchases outside the country.

    He said, “This is in recognition of the customers’ needs and expectations. The new limit has been implemented.”

    According to Nweke, with the significant review, customers will now be able to carry out enhanced cross border transactions priced in foreign currency using their debit, credit cards with improved satisfaction.

    He explained that customers will now be able to carry out more transactions with ease and at their convenience. “This gives our customers the opportunity to make international payments on POS and Web. In addition, you can make ATM withdrawals subject to the current limit of $100/day.”

    Continuing, he said, “This only goes to show that, customers are at the core of our business and our unalloyed commitment to satisfying them with nothing short of unequaled service is not compromised. We remain focused on creating superior and sustainable service delivery, unique to UBA “

  • UBA offloads 2.09bn shares on NSE to lead activity chart

    UBA offloads 2.09bn shares on NSE to lead activity chart

    The United Bank for Africa (UBA) on Tuesday drove activity on the Nigerian Stock Exchange (NSE) with a turnover of 2.09 billion shares valued at N19.76 billion.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the activity in UBA to part of the management’s plan to reduce the bank’s issued shares in line with the shareholders’ mandate.

    Omordion said that the bank had a scheme for members of staff and the shares in the scheme were in excess of two billion ordinary shares which were offloaded.

    He said that the transaction would boost both the bank’s earnings and dividend payout going forward.

    TheNewsGuru.com reports that the volume of shares traded closed higher due to huge activity posted by UBA.

    Consequently, a total of 2.40 billion shares worth N21. 61 billion were transacted in 3,715 deals against 322.81 million shares valued at N2.73 billion achieved in 3,830 deals on Monday.

    Continental Reinsurance came second with an exchange of 174.42 million shares worth N219.77 million, while FBN Holdings sold 35.51 million shares valued at N208.48 million.

    Oando traded 13.59 million shares worth N89.96 million and Skye Bank accounted for 9.31 million shares valued at N5.59 million.

    Also, the NSE market indices appreciated further with the All-Share Index growing by 135.18 points or 0.41 per cent to close at 33,436.61 against 33,301.43 recorded on Monday.

    Similarly, the market capitalisation rose by N46 billion or 0.40 per cent to close at N11.523 trillion in contrast with N11.477 trillion posted on Monday, due to price gains.

    Nestle led the gainers’ table during the day, gaining N16 to close at N920 per share.

    Beta Glass followed with a gain of N2.70 to close at N57.47 and Okomu Oil appreciated by N2.62 to close at N63 per share.

    Unilever gained N1.81 to close at N38.19, while Nigerian Breweries appreciated by N1.70 to close at N159.11 per share.

    On the other hand, Forte Oil recorded the highest price loss to lead the laggards’ table with a loss of N2.54 to close at N57.96 per share.

    Cadbury trailed with a loss of 56k to close at N12 and Zenith Bank shed 42k to close at N21.53 per share.

    Custodian and Allied Insurance declined by 17k to close at N3.40, while May and Baker was down by 14k to close at N2.65 per share.

     

    NAN

  • Etisalat debt predicament: 13 Banks’ shareholders mount huge pressure

    …ask telecoms firm to clear debt

    Shareholders of the 13 banks involved in the N1.2 billion loan for Etisalat Nigeria have asked the telecoms company to pay up its debt in order to guarantee the payment of annual dividends.

    The shareholder group told the News Agency of Nigeria in Lagos on Tuesday that the company risks legal action by the banks if it failed to settle its outstanding loan obligation.

    The National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, said the affected banks should approach the court for receivership if Etisalat failed to settle the debt.

    Mr. Okezie said in view of the obligations the banks have to their shareholders, in terms of dividend payment at the end of the financial year, it was incumbent on Etisalat to pay the debt.

    On his part, the Chairman of Nigeria Professional Shareholders Association, Godwin Anono, said the company was under obligation to settle the debt, since the transaction was in line with the customer-bank relationship, involving terms and conditions that must be obeyed.‎

    Mr. Anono said the shareholders were in support of the banks’ move to acquire the company if it failed to settle the loan.

    “This is like any other transaction. It’s not government business. I stand on existing protocol to say that the banks should acquire the company if it fails to settle the debt,” he said.

    The Head Research, SCM Capital Ltd, Sewa Wusu, said where there was any breach of the terms and conditions of the loan between Etisalat and the consortium of banks, then the normal legal process should be followed.‎

    Mr. Wusu said the issue was beginning to elicit concerns in the banking industry considering the amount involved and its potential impact on the balance sheets of the banks banks.

    “Since the monetary authority is also involved in the negotiation, I am sure this will ensure prompt settlement of the situation among the parties,” he said.

    Etisalat had obtained a $1.2 billion (N377.4 billion) syndicated loan in 2013, from a consortium of 13 Nigerian banks, to finance a major network rehabilitation, upgrade and expansion of its operational base in Nigeria.

    The consortium of banks include Access Bank, Zenith Bank Plc, Guaranty Trust Bank Plc, First Bank Limited, Fidelity Bank Plc, First City Monument Bank (FCMB), Stanbic IBTC, Ecobank, United Bank for Africa (UBA) Plc and Union Bank of Nigeria Plc.

    Zenith Bank, Guaranty Trust Bank and Access Bank have the top three exposures of the total loan – N80 billion, N42 billion and N40 billion respectively.

    Etisalat Nigeria said last week it had paid about half of the initial loan (about N504billion), leaving a total outstanding sum of about $574 million.

    >>Also read: United Arab Emirates-based Etisalat Group says willingness to release its brand name is conditional

     

  • UBA puts customers first, introduces world class Mobile Banking App

    The United Bank for Africa Plc, UBA, has announced the launch of a brand new mobile banking application with many user friendly features.

    This is in line with the pan African financial institution’s commitment to deliver superior and innovative banking solutions to its customers.

    The new mobile app which comes with the biometric log-in feature for secure, personalized access is now available for download on Apple and Google Play App Stores.

    The UBA Mobile Banking App has been tailor-made to enhance ease of banking by enabling customers to carry out their transactions without visiting a branch.

    Other features of the app, highlighted by UBA’s Head of Digital Banking, Dr. Adeyinka Adedeji include: “a more interactive, user friendly interface, ATM/branch locator for easy access to the bank’s touch-points, easier airtime top up via direct selection of contacts from the phone address book, auto reminder for bill payments and recurrent transfers”.

    He further stated that the app has fewer clicks, thereby allowing easier navigation and faster transactions. Customers using the One Time Password (OTP) can perform transactions of up to N200,000(Two Hundred Thousand Naira only). Also in a bid to maintain a closer relationship with its customers, UBA has introduced a round the clock live chat platform to the app.

    The GMD/CEO UBA, Kennedy Uzoka was delighted with the launch of the new mobile app and said of it: ‘ UBA’s new Mobile Banking App demonstrates our resolve to provide unparalleled experience across all its channels It is in line with UBA’s vision to dominate Africa’s digital banking space’

     

  • S&P assigns ‘B/B’ ratings, stable outlook on UBA

    S&P assigns ‘B/B’ ratings, stable outlook on UBA

    International Rating Agency, Standard and Poor’s (S&P) assigned its ‘B’ long term and ‘B’ short term global scale counterparty credit ratings to the United Bank for Africa Plc (UBA).

    These ratings on the pan African financial institution, United Bank for Africa (UBA) Plc, are at par with S&P ratings on the Nigerian Sovereign.

    More so, S&P’s ‘B’ rating is the highest rating currently assigned to any Nigerian-based financial institution, thus reinforcing the respectable quality and strength of UBA, the third largest Nigerian-based bank by assets, deposits and profits.

    The rating agency noted that UBA’s market position is supported by its good franchise in the corporate and retail segments in Nigeria as well as geographic diversification, with operations in nineteen African countries (Nigeria inclusive).

    TheNewsGuru.com reports that UBA is the only West-African bank with operations in the United States, in addition to its presence in the United Kingdom and France.

    Recognizing the strong profitability and capitalization of UBA, S&P added: “We expect that UBA’s earnings will be resilient despite the economic slowdown in Nigeria. We believe the bank’s capital and earnings under our risk adjusted capital and earnings framework will remain moderate over the next 12-18 months, with its capital adequacy ratio remaining well above minimum regulatory requirements.”

    UBA’s capital adequacy ratio was 19.7 per cent at year-end 2016, which is well above the regulatory minimum of 15 per cent, and we believe it will remain stable over the next 12-18 months.

    Notably, the capitalised position of UBA reflects its strong profitability as well as the Bank’s sound and prudent risk management practice.

    S&P assesses UBA’s risk position as adequate and posits that the ratings of ‘B’ reflects its expectation that the group will exhibit broadly stable asset quality in the next 12 months.

    The global rating agency anticipates that UBA’s credit losses will decline to about one per cent in 2017-2018.

    Reflecting UBA’s continued market share gain in low cost, stable deposits, which account for 79 per cent of total customer deposits as at 31 December, 2016, UBA’s funding and liquidity continue to wax stronger, as reflected in the average liquidity ratio of 42 per cent in 2016, amidst the tight market conditions in Nigeria.

    S&P considers the bank’s funding to be above average and its liquidity as adequate, owing to its stable and relatively low-cost, retail-deposit-based funding profile.

    Despite tightening monetary policy in Nigeria in 2015-2016, the bank has been able to maintain a stable cost of funding at about 3.7 per cent as of December 31, 2016”.

    The Group reported a net stable funding ratio of 143 per cent as of the same date and exhibits one of the lowest levels of loan leverage among Nigerian peers. Broad liquid assets covered short term wholesale funding about four times as of the same date.

     

  • Forex: CBN bars UBA, First Bank, GTB, others from SME sales window

    The Central Bank of Nigeria (CBN), on Tuesday, barred 14 Money Deposit Banks from dealing in the Small and Medium Entreprises (SME) wholesale Forex window.

    The barred banks are First Bank, Keystone Bank, Main street Bank, Ecobank, Stanbic IBTC, Citi Bank, Enterprise Bank and WEMA bank.

    Others are Guaranty Trust Bank, First City Monument bank, Union Bank, SunTrust Bank, Standard Chartered Bank and United Bank of Africa.

    The CBN spokesman, Mr Isaac Okorafor, in a statement in Abuja, said they were barred, following persistent complaints that some Deposit Money Banks (DMBs) deliberately frustrate efforts by many SMEs to access forex from the new window created by CBN.

    He said the financial regulator took the decision to bar the erring banks based on field reports, which revealed that only eight banks out of 22 had sold forex to the SMEs segment since the inception of the new window.

    He said the CBN frowned at the action of banks that declined to sell foreign exchange to SMEs to enable them import eligible finished and semi-finished items despite the availability of forex from the CBN.

    Okorafor, said all banks that had refused to sell forex to the SMEs after accessing over 300 million dollars offered through the SMEs window since its creation last month will be sanctioned accordingly.

    He listed the banks not barred to include: Access Bank Plc, Diamond Bank Plc, Fidelity Bank, Heritage Bank, Jaiz Bank, Sterling Bank, Unity Bank and Zenith Bank.

    He warned that the CBN would not sit back and allow any form of instability in the interbank forex market through the actions of institutions or individuals.

    He, therefore, urged all stakeholders to play by the rules for the benefit of the entire country and its economy.

    Meanwhile, the CBN continued its massive intervention in the foreign exchange segment of the financial market by injecting 196.2 million dollars into the various segments of the Forex market on Tuesday.

    According to Okorafor, the apex Bank also offered 100 million to authorised dealers at Tuesday’s Forex wholesale auction.

    A breakdown of the other interventions indicate that the CBN made available 52 million dollars to the SME segment, while invisibles such as Personal and Basic Travel Allowance, medicals and tuition fees received 44.2 million dollars.

    The spokesman expressed confidence that the interventions would continue to guarantee stability in the market and ensure availability to individuals and business concerns.

    TheNewsGuru.com recalls that the CBN in April, opened a special foreign exchange window to cater to the SME sector.

    The Window would enable SMEs import eligible finished and semi-finished items not exceeding 20,000 dollars for an enterprise per quarter.

    This is part of the CBN strategy to improve the fare of everyday imported commodity in the market.

     

     

     

    NAN

     

  • REDTV Sponsors Runway Jazz to Commemorate Lagos @50

    REDTV a dynamic online lifestyle channel, supported by United Bank for Africa (UBA) Plc, that puts the spotlight on Africa with a distinct global appeal, has announced its sponsorship of the Runway Jazz Festival as part of events lined up for the commemoration of Lagos @ 50.

     

    The Runway Jazz Festival scheduled to commence on April 29 and close on the April 30th, is organised by Sweet Sound Production in conjunction with Lagos State Government. The event, a fusion of world class Jazz performances and fashion, coincides with the international Jazz Day themed “Promoting Peace, Unity and Dialogue through Art”.

     

    Speaking at the press conference held in Lagos at the weekend, Obinna Okerekeocha, Creative Director, Red TV, said the partnership will afford REDTV’s teeming viewers and lovers of contemporary Jazz the opportunity to experience a world class Jazz concert in Lagos. Headlining Runway Jazz 2017, according to Okerekeocha are two Grammy awards winners; American Saxophonist, Najee and UK Singer-songwriter, Joss Stone. Others billed to perform at the event to be held in Eko Hotel Convention Centre are some of Nigeria’s finest entertainers including Waje, Yinka Davies, Dede, Heavywind, Tosin Alao, Xerona Duke and host band, Sweet Sound.

     

    The two day event will kick-off with the Music & Business Masterclass on Saturday April 29 and the Runway Jazz Concert on Sunday April 30, 2017

     

    “With haute couture from Jewel by Lisa, and a runway show that captures the evolution of Lagos over the last 5 decades, Runway Jazz is the biggest and most unique music and fashion event to hit the Naija entertainment scene,” Okerekeocha said

     

    Also speaking at the press conference held at the Tony Elumelu Amphitheatre in UBA House, the Executive Producer, Mr Afolabi Oke, said “the Runway Jazz activities this year have been heightened and elevated by two strategic partnerships. The first is with the Berklee College of Music, Boston, USA, which will present a music and Business Masterclass, facilitated by Professor George W. Russell Jr, Chairman of the Harmony Department. The second is the Lagos State Government; as we team up to celebrate the remarkable anniversary of Lagos State, Lagos@ 50.”

     

    On the theme for the event “Promoting Peace, Unity and Dialogue through Art”, he noted that “At a time when there is so much turmoil, with socio-cultural imbalances, and political unrest across nations, there is no better way to unite the people than through a medium that pushes forward an agenda that promotes peace, unity, acceptance of diversity and intercultural dialogue- Music.”

    Ace Musician, Dede Mabiaku and one of the star performers from Nigeria added that the Runway Jazz was birthed to engage music and art enthusiast and Jazz aficionados, giving stylish expression to art and culture through music and fashion. According to him, the focus on Jazz music really broadens its appeal, particularly in Nigeria and across Africa, and introduces an innovative franchise into the Nigerian entertainment scene. He further assured that this year’s event will be the biggest in its history as he promised to perform great songs from Afrobeat King, Late Fela Kuti.