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• TOUGH OPERATING CONDITIONS:
The impact of
the global financial crises began to take its toll
on Africa’s economy in late 2008, and has dealt
a big blow on businesses with increasingly low
access to capital and continued decline in cus-
tomers’ marginal propensity to save.
• INCREASING COMPETITIVE LANDSCAPE
: With
stiffer operating conditions, players in the in-
dustry have continued to devise measures of
gaining market share from competitors. Foreign
banks are increasingly becoming threats to the
survival of local operators.
• REGULATOR-INDUCED STRESS TEST:
In 2009, the
Central Bank of Nigeria (CBN) conducted an
audit on the industry and recommended that
banks write-off certain non-performing loans to
the profit and loss account.
• DELIBERATE BALANCE SHEET CLEAN-UP:
Man-
agement of the bank took a bold step in 2011,
when it decided to embark on a
thorough balance sheet clean-
up process. The consequence of
this decision was the N9.6 billion
loss the Group recorded in 2011.
2012: UBA’S YEAR OF RESO-
NANCE
H
aving dealt with all legacy chal-
lenges
through an aggressive
balance sheet clean-up process, the
sleeping lion is now set to roar again.
The performance recorded in the first
quarter of this year was very impres-
sive and affirms this assertion.
The highlights of the results are as fol-
lows:
• Gross earnings of N54 billion, up
by 33% year-on-year;
• Solid operating income of N39.2
billion, 34% higher than what was
recorded in the corresponding
period;
• Pre-tax profits of N16 billion, grew
by more than 200% year-on-
year;
• Deposit base of N1.55 trillion, up
by 6.2% from December 2011;
• Total assets crossed the N2 trillion
mark, higher by 8.2% from the
December 2011 position;
• Annualized ROE and ROA of 28%
and 2.4% respectively;
• Non-performing
loans
ratio
dropped to 3%; and
• Robust liquidity and capital adequacy ratios of
60% and 22.9% respectively.
DRIVERS OF FINANCIAL PERFORMANCE
GOING FORWARD.
The current financial year and subsequent ones are
hinged on increasing contributions from our African
operations, better pricing of assets, harnessing our
treasury and electronic banking platforms, reducing
cost of funds and efficient balance sheet and capi-
tal management.
Importantly also, we have to ignite our passion for
excellent performance on our respective jobs and
entrench superior customer service delivery. These
are the true sources of value and competitive edge,
going forward. With all hands on deck, we can get
this great institution back to its leadership position in
the industry.
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