Africa’s Global Bank, United Bank for Africa (UBA) Plc has said that its diversified business model in key international markets on the continent and around the world, continues to act as a hedge and to position the Group to better mitigate business risks arising from the financial, economic and political environment.
UBA group managing director/chief executive officer, Oliver Alawuba, who stated this, pointed out that due to its wide reach and network, the banking group is strengthened and largely insulated from internal and external challenges that have become commonplace amongst financial institutions on the continent.
Alawuba was speaking in an exclusive chat with pressmen on the side-lines of a four-day UBA Group International Banking Conference which took place in New York, organised and hosted by UBA America between October 17th and 21st, 2022.
As he highlighted the various challenges plaguing banks and financial institutions in Africa and beyond, including credit risks, market risks and even operational risks, Alawuba explained that with UBA’s vast foray into key markets, the bank has put in place solutions that will help hedge against losses arising such risks.
He said, “There are several challenges for Nigerian and African banks such as issues of payments, currency depreciation amongst others, but over the years, at UBA, we have developed the capacity to effectively manage these risks whilst we continue to pursue our growth strategy.
Continuing, he said, “UBA is a diversified institution in terms of the businesses and sectors we support. Some of the countries where we are present, like Zambia, Guinea and Mozambique have not witnessed currency depreciation, and so, the diversified nature of our business is a key positive. It gives us the leverage and provides business resilience. Furthermore, our presence in global financial centres such as New York, Paris, and London provide further diversification of revenues and hedges against devaluation on the African continent. UBA America has been providing banking services to African institutions for over three decades, we know Africa very well and understand how to mitigate the risks of doing business in Africa.”
The group CEO added that the International Banking Conference was aimed at proffering solutions, noting that African banks were afforded the opportunity to come together, share experiences and acquire tactical strategies to address the continents’ big financial challenges.
