Categories: MONEY MARKET

UBA bets big on technology, lending to power growth —Elumelu

UNITED Bank for Africa (UBA) is strategically investing heavily in technology and expanding its loan book to enhance customer experience and drive economic growth, according to the bank’s Chairman, and Group Managing Director.

With a customer base of over 45 million, UBA is leveraging digital platforms to stay ahead in the era of artificial intelligence, while its loan book has grown to N7.5 trillion, underscoring its commitment to funding growth initiatives and contributing to the economic transformation of Nigeria and Africa.

Speaking at the 65th Annual General Meeting of UBA, held at Transcorp Hilton Abuja, Group Chairman Mr. Tony Elumelu said UBA Group maintained a well-structured and diversified balance sheet, with total assets and shareholders’ funds closing at N30.3 trillion and N3.4 trillion, respectively.

In his words, “The group delivered another very strong year, generating gross revenue of N3.2 trillion and profit after tax of N767 billion. We successfully sustained our deposit mobilization efforts, growing total deposits by 42 percent to N24.6 trillion, up from N17.4 trillion in the corresponding period of 2023.

“Additionally, our loan book expanded by 35 percent to N7.5 trillion, up from N5.5 trillion, demonstrating our commitment to fund growth and make our contribution to Nigeria and Africa’s economic transformation.”

He expressed satisfaction that, throughout over seven decades, the UBA Group has demonstrated a capacity to adapt, transform, disrupt, establish, and uphold a fundamental responsibility to its customers and shareholders.

According to Elumelu, in 2024, UBA marked 75 solid years of unwavering commitment to excellence, innovation, and service, adding that the group’s existence over three-quarters of a century is a testament to resilience, institutionalization, consistency, and firmness of purpose.

“These very strong results reflect the execution of our long-term strategy, the hard work of our dedicated staff, providing tangible solutions to real needs, and delivering value, innovation, and service to all.

“UBA is proud to support businesses, governments, and consumers across Africa globally. It is worth repeating: we serve over 45 million people across four continents, in 24 countries, and with a corporate client base that is truly global. So when your bank is serving 45 million people, that is many countries put together as a population,” he stated.

On the Central Bank of Nigeria’s directive to increase the minimum capital requirement for international commercial banks to N500 billion, Elumelu disclosed that UBA’s current capital as of 2024 was N116 billion.

However, following the rights issue the lender launched in November last year, which was oversubscribed, N251 billion has been verified and approved by the Central Bank of Nigeria.

Given that it was a rights issue, he said the bank could only take up N240 billion — the amount it set out to raise. This left an oversubscribed position of N11.6 billion, which had to be returned to the shareholders.

“So we thank you, shareholders, for your unprecedented confidence and commitment to UBA,” he emphasised.

As an engaged and active corporate citizen, UBA, according to him, will continue to integrate ESG into every aspect of its operations.

“In 2024, we planted 4,550 seedlings across various locations. This initiative has the potential to offset approximately 212,000 kilograms of carbon emissions, contributing to a greener and more sustainable future.

“Our Read Africa Initiative distributed over 13,000 books to youth across our continent, helping to rekindle the reading culture. These efforts reflect our dedication to environmental stewardship, financial inclusion, and social progress,” Elumelu disclosed.

In his response, the GMD/CEO, Oliver Alawuba, said the primary focus of UBA is the customer, who is the reason for the bank’s existence.

“We want to make sure that we improve the customer experience. These days, the best way to improve customer experience when serving about 45 million customers around the world is through digital banking.

“So we’re investing heavily in digital banking to improve your experience. You know it is a world of artificial intelligence. You have heard that we are moving in that direction too, because that will improve our service to you,” he assured.

According to Alawuba, complaints are feedback used to improve UBA’s service experience. He added that the group is also improving the technology around managing feedback and enhancing customer experience so that once “you send any complaint, we’ll respond promptly.”

“We’re also using technology to ensure there’s no fraud in your account. If you’ve noticed, this has improved significantly. We have invested to ensure that any money you deposit with UBA will remain secure. Anytime you access your account, your money will be there. We are improving and doing our best to ensure that the next time we meet, we’ll be able to move closer to, if not exceed, the seven Naira target that has been set for us by shareholders,” Alawuba submitted.

Chima Nwokoji