When the United Bank for Africa and Standard Trust Bank merged in 2005, not many could have seen the marriage producing a mega bank in the mould of the present UBA Plc. But today, following a strong and stable leadership, pushed by the consistent guidance of its Chairman, who at one time sat as the Group Managing Director/Chief Executive Officer, Tony Elumelu, and the capacity exhibited by those who succeeded him as GMD/CEO, including the incumbent, Oliver Alawuba, you can’t just miss UBA’s influence worldwide.
Aside from its presence in Nigeria, Africa and some of the world’s largest commercial cities, it has struck different chords with its growing communities.
This is because different people love UBA and are stuck with it for different reasons. Outside of core banking services, there are those who have unalloyed loyalty to the institution because of the other purposes it serves in their communities.
UBA Foundation
Incorporated in January 2004, the UBA Foundation is the Corporate Social Responsibility arm of the UBA Group. It is committed to the socio-economic betterment of the communities in which the bank operates, focusing on development in the areas of Education, Environment, Economic Empowerment and Special Projects.
Among core projects of the education arm of the UBA Foundation are the Read Africa Project and UBA National Essay Competition. Both programmes have seen several Nigerian and African children emerge winners with scholarship awards following. The schools that have produced the winners have also benefitted immensely. This is apart from the banking offerings to parents for their children’s education. In fact, UBA is highly focused on the celebration of Children’s Day as it has always restated its commitment to nurturing young leaders.
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The UBA Foundation said on its vision: “A highly educated and well-informed youth is critical to the future of Africa. Quality education is therefore crucial in developing the manpower needed by Africa to exploit emerging opportunities and propel the continent to higher levels of development. For this reason, the Foundation is actively involved in facilitating educational projects and bridging the literacy gap on a pan-African scale.”
That is just one arm of the UBA Foundation’s focus. The empowerment of people in the communities in which the bank operates and the environmental sustainability of the communities also rank high on its focus. There are several initiatives in this regard.
And there are those who are simply in love with UBA for its involvement in entertainment. Its REDTV on YouTube has become a must watch for millions of people who follow shows that have been released there and involvement in fashion shows that have seen the bank develop strong entrepreneurs who have gone on to stamp their authority in the fashion industry. The bank has also not missed the annual celebration of the African Day with its staff adorning attires local to where they operate across the African continent.
Several travellers to and within Nigeria also now rely on UBA for their accommodation, courtesy of Aura by Transcorp. This is a platform that provides perfect fit accommodation for individuals and families. It has been highly ranked just like the website of the bank, which is the most visited bank website in Nigeria. This, observers said, shows how much Nigerians and others worldwide believe in UBA.
That was why when the bank last year released the programme to mark its 75th anniversary, its customers and stakeholders quickly embraced its promo. The promo, which will see customers smiling home and to the bank with N200 million, has since commenced.
And then to its core banking mandate, shareholders have not failed over the years to commend the management and staff of the bank, led by Elumelu, who is also the Founder of the Tony Elumelu Foundation. Let’s use the 2023 financial year as a reference point.
Shareholders praised the board, management and staff of the bank on the impressive performance recorded over the past years, especially in 2023, culminating in the payout of N78.7 billion as final dividend for the 2023 financial year. The shareholders, who spoke at the bank’s 62nd Annual General Meeting, which was held at the Congress Hall of Transcorp Hotels in Abuja, overwhelmingly approved the Board of Director’s proposal to raise additional capital through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments in the Nigerian and/or international capital market.
Addressing shareholders at the event, Elumelu, the Group Chairman, appealed to shareholders to participate fully and reinvest their dividends in the bank’s recapitalisation drive as this will ensure that they continue to enjoy even higher returns from their investments. He said: “I call on you shareholders to re-invest a substantial part of your dividends in our rights issues which will be announced soon, as we will be giving you the first opportunity to own a share in all the countries where we operate. I am advising shareholders, as you get your dividends, reinvest a significant part of it. As for my board members and I, we would be investing 100 percent of the dividends we get because if we don’t do so, it means we would be leaving food on the table for others who did not labour for it.”
The statement by Elumelu resonated with many, especially following a further revelation that there will be more for those who are already shareholders. One of the bank’s shareholders, Mukhtar Mohammed, hailed the bank for its stability, alluding to its smooth succession plans, while others are rocked by crisis; sound corporate governance; and a history that resonates with many.
Mohammed said the bank has also been good to its shareholders. He said when UBA created subsidiaries, including Africa Prudential and United Capital, existing UBA shareholders were offered free shares in the companies. Added to this, he said, is the fact that UBA is no longer looking for money to expand its banking business as it already has presence in 20 African countries, France, United Kingdom, United States of America, and United Arab Emirates.
Still on the 2023 financial year, UBA declared an interim dividend of N17.1 billion, representing a pay-out of 50kobo per share for the first half of 2023, thus bringing the total dividend for the 2023 financial year to N95.8 billion, representing N2.80 per share. Surprisingly and in another first, dividend payouts were received while the meeting was still on, just seconds after the resolution on dividend payments were passed at the meeting by the shareholders, resulting in open excitement from the shareholders.
The shareholders also commended the bank’s management over the impressive performance for the 2023 financial year, which resulted in the large payout of dividend to its investors, and highlighted its thriving business in its African subsidiaries, which continues to contribute significantly to the Group’s total income.
Alhaji Mukhtar Mukhtar, one of the shareholders who spoke at the meeting, commended Elumelu and Alawuba for their concerted effort towards ensuring that the performance of the bank reached unprecedented heights in the year under consideration. He said: “I want to specially commend the management and Board of UBA, especially the Chairman, Tony Elumelu, and the GMD/CEO, Oliver Alawuba, who have been managing activities of this great institution over the past few years. We are impressed at the results that you have recorded so far, how you have managed to maintain a well-structured balance-sheet and diversified balance sheet with total Assets growing to over N20 trillion. The achievement that the bank has recorded under your leadership, especially the sterling contributions of our subsidiaries in Africa, deserves accolades.”
Another shareholder, Patrick Ajudo, also commended Elumelu for keeping the promise made to shareholders a few years ago to begin to pay an increased dividend. Ajudo said: “Our Chairman, Tony Elumelu, promised shareholders a few years ago in this same hall, that he will move from ‘kobo-kobo’ dividends to naira dividends, and he has kept that promise. We are very excited, because, not only have you kept that promise, but you have backed it up by even matching the industry standards. Indeed, we are proud to be associated with such a brand that has integrity, and we highly commend you for this.”
A lawyer and shareholder, Adetutu Siyanbola, commended the bank’s management for its operations over the decades, especially as it celebrates its landmark 75th year anniversary, praising the gender balance and high female representation on the bank’s board, which according to her, is a feat worth emulating by other financial institutions in Africa. While commending the GMD for winning several awards in the 2023 financial year, Siyanbola expressed satisfaction that the bank did not incur any penalty in the year under consideration, which meant that UBA had zero infractions and didn’t run afoul of any regulations.
At the end of the 2023 financial year, UBA recorded an impressive leap in gross earnings as it grew from N853.2 billion recorded at the end of 2022 to close at N2.07 trillion, representing a strong 143 percent growth. Total assets also rose remarkably by 90.22 percent to close at N20.65 trillion up from N10.86 trillion in 2022. Profit before tax also grew exponentially by 277 percent to close at N758 billion, up from N200.88 billion recorded in 2022, while profit after tax grew by 257 percent from N170.2 billion in 2022, to N607 billion.
Alawuba, explained that despite being a year of significant geopolitical and economic challenges, UBA’s strength, the effort and dedication of the team, and its leadership in strategic areas such as innovation and sustainability, helped the bank to grow in a profitable and sustainable manner. Looking ahead, he said: “The outlook is great because we are diversified. Our African subsidiaries contributed over 55 percent to the bank’s profit this year, and we will do more. Already, the Bank entered 2024 from a position of strength, with proven resiliency, a powerful brand and a strong capital position. As we begin 2024, ‘execution’ will continue to be on the front burner, with an unrelenting focus on market leadership and excellent customer experience at all touch points,” Alawuba explained.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 35 million customers globally. Operating in 20 African countries and in the United Kingdom, United States of America, France and United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology. It officially opened for business in Dubai, the United Arab Emirates in 2022.
UBA with a rich history spanning over seven decades. The bank, which is headquartered in Lagos, Nigeria, is one of the most recognised financial institutions to originate from Sub-Saharan Africa with thriving operations in 20 African countries: Republique du Benin, Burkina Faso, Cameroon, Congo Brazzaville, Congo DRC, Cote d’lvoire, Gabon, Ghana, Guinea, Kenya, Liberia, Mali, Mozambique, Nigeria, Senegal, Sierra Leone, Tanzania, Tchad, Uganda and Zambia.
UBA provides corporate, commercial, SME, consumer and personal (retail) banking services to more than 45 million customers, served through diverse channels: over 1,000 business offices and customer touch points with 2,669 ATMs, 87,223 PoS, and robust online banking services. Additionally, UBA offers pension custody and related services. The bank has proven expertise and capacity in key sectors of economies across Africa, especially in Oil and Gas, Infrastructure Finance, Agriculture, and Commodity/Export, and this positions us as a preferred partner for structured solutions to key governments and corporates operating in/into Africa.
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