4 •
The Lion King
• October - December 2015
GMD’s Message
rate volatility.
The above scenario will have direct
impact on the banking sector perfor-
mance as non-performing loans are
expected to increase sharply given
depreciating currencies and inter-
est rate volatility. This could further
impact industry market liquidity and
other income lines for banks.
However, I strongly believe that UBA
Group’s strategic focus and our adopt-
ed business model will remain ever
resilient in the face of these challeng-
es. Success of this will be supported
by our continuous investment into key
areas of the Bank, sector focus and
innovative product offerings to our
customers. Pressure on fiscal revenues
arising from weak commodity prices
presents an opportunity to extend our
unique e-payments and collections
solution to public and private sector
customers. At a time many African
governments need to block revenue
leakages, and have efficient and low
cost collection systems, our advanced
e-banking platform offers them an
unrivalled solution. The deployment
of our online and e-banking platforms
and products to private and pub-
lic organizations to track and control
expenditure will improve efficiency in
a tougher business environment envis-
aged in 2016.
UBA has been positioned for a time like
this. Over the years, we have invested
heavily in our IT platforms to ensure
that we have the most advanced
Sustaining the
momentum in
2016
e-payments and collections platforms
as well as online and mobile banking
platforms in the banking industry. And
this is the ideal solution that is needed
now for players in both the public and
private sector. I urge all staff to go out
there to offer our unique solutions to
our existing and prospective custom-
ers. Furthermore, I implore all staff to
ensure that our commitment to excel-
lent customer service delivery remains
our overarching target in dealing with
all customers.
Nevertheless, we must not ignore the
impending risks while growing our busi-
ness group wide. We must continue to
adhere to our strong risk management
practices to create only quality assets.
Finally, let me reiterate that regula-
tory compliance across our operating
environment is the prerogative of
every staff and the Bank remains firm
on zero tolerance to policy infringe-
ments. This is to further build our brand
equity and avoid sanctions.
It is my firm belief that despite all its
anticipated challenges, we have the
resilience, committed staff and right
strategies to make this year better
than 2015 and meet the expectations
of all stakeholders, both foreign and
domestic . I urge you to make 2016
another remarkable and successful
year for the Bank.
Thank you.
Phillips Oduoza
GMD/CEO
T
he 2015 financial year will be
remembered as one that brought
with it both foreign and domestic
macro-economic headwinds, testing
the business models of banks across
the African continent. It was a remark-
able year for UBA Group as we reaf-
firmed the resilience of our balance
sheet and business model to withstand
the significant challenges witnessed
within the African banking industry.
Despite the significant macro and
socio-economic challenges, the
Group recorded stellar performance
as at Q3 2015. Gross earnings record-
ed a year-on-year growth of 17% to
N247bn whilst Profit Before Tax grew
by an outstanding 34.8% to N57.4bn.
This result was attributed to our con-
tinuous staff commitment, our diversi-
fied business structure across multiple
geographies and key growth sectors,
reinforcing the strategic nature of our
business model across Africa.
Looking forward, 2016 has been fore-
cast to present a tougher business
operating environment. Global oil
and commodity prices will remain
depressed in the face of supply glut,
slower growth in China, weak recov-
ery in the Eurozone and more recently,
US Federal Reserve stance to normal-
ize rates. Exchange rates across the
continent have weakened since start
of the year due to slower revenues
resulting from a slide in commodity
prices. This is expected to continue in
2016 and will deepen balance of pay-
ment problems and increase interest
