UBA To Grow Deposits By 45%, Says Recapitalisation Plans At Advanced Stage

United Bank for Africa has said with its recapitalisation plans at an advanced stage, it expects regulatory approval in a couple of weeks as it plans to grow its deposit base by 45 per cent by the end of the year.

Addressing investors at its half-year 2024 Investor Conference, group managing director and chief executive of the bank, Oliver Alawuba, stated that UBA will continue to focus on market leadership as it upholds the ideals of Enterprise, Excellence, and Execution.

“We are at an advanced stage with our recapitalisation process” Alawuba noted, adding that “our application has been submitted to SEC and we expect their approval in the next couple of weeks following which the market will be advised.”

Stating that the bank entered the second half of 2024 from a position of strength, he said “our proven resilience, strong capital position, and market-leading capabilities position us to continue our growth trajectory. “EXECUTION” will remain our driving force as we focus on market leadership and delivering excellent customer experiences at every touchpoint.”

Having initially projected a 20 per cent deposit growth in 2024 at 20, per cent, Alawuba noted that with a 33.7 per cent growth in H! 2024, the bank expects a 45 per cent improvement in deposit. He also noted that its loan book is expected to grow by 40 per cent as against the 20 per cent that was initially projected for the year and the 26.1 per cent that was recorded in the first half of the year.

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Alawuba noted that the bank’s successes in H1 2024 were made possible “by the dedication of our colleagues, the trust of our customers, the support of our regulators, and the confidence of our shareholders. We remain committed to achieving even greater milestones with your continued support.

Commenting on the bank’s performance in the first half of the year, he said “UBA Group delivered strong double-digit growth across high-quality and sustainable revenue streams. This performance reflects our disciplined execution of strategic goals, focusing on balance sheet expansion, transaction banking, and digital banking businesses across our markets.

“We achieved a robust Profit Before Tax of N401.6 billion, reflecting our ability to manage risks effectively amidst macroeconomic volatility. Our deposits grew by 34 per cent, from N17.4 trillion at year-end 2023 to N23.2 trillion in H1 2024, demonstrating the trust and loyalty of our customers.

“We saw a 37 per cent growth in total assets, reaching N28.3 trillion, up from N20.7 trillion at FYE 2023. This growth was driven by strong customer relationships and our ability to capitalise on opportunities across geographies.

“Our intermediation business posted impressive growth, with net interest income expanding by 143 per cent year-on-year to N675 billion, further underlining the strength of our core banking operations. Digital Banking & Payments: Digital Banking income surged by 107.8 per cent YoY to N106 billion, while funds transfer and remittance fees rose 188.7 per cent and 22 per cent, respectively. We continue to lead in digital banking and payment solutions, helping drive financial inclusion across Africa.”