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FINANCIAL
PERFORMANCE:
INTRODUCTION:
Since its merger in August 2005, UBA
has remained a force to be reckoned with in the Af-
rican Banking space. Besides the historic and seam-
less merger with Standard Trust Bank, it has remained
committed to its aspiration of being Africa’s global
bank. Between 2005 and 2008, UBA was the larg-
est bank in Nigeria in terms of profits, balance sheet
size, deposits and spread. Though, this has changed
in more recent years, our bank is strategically posi-
tioned to regain lost grounds in the industry.
THESIS:
The financial performance of the Group in
the last few years has been a mixed bag; so much
that analysts and investors have consistently applied
a higher cost of equity to its stock valuation.
From the graph below, UBA delivered solid financial
performances after the 2005 consolidation exercise,
with net profits peaking at N40.8 billion in 2008.
Fig. 1:
Trend in UBA financial performance (2007 – 2012)
However, the tide turned from 2009 largely as a re-
sult of the following:
• AFRICA EXPANSION:
In line with its vision, UBA
has diligently pursued its pan African expansion
strategy with operations in eighteen other Afri-
can countries today. As expected, the strategy
has exerted pressure on the Group’s human
and capital resources. Moreso, the estimated
average break even period for the businesses
is two years, implying that some of them are yet
to make expected contributions to the Group.
BY MICHAEL NWANOLUE
UBA is poised for an
impressive run in 2012
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2004 2007 2008 2009 2010 2011
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