New UBA CEO unfolds vision as shareholders get N22b dividend

Kennedy Uzoka, the group managing director-designate for the United Bank for Africa (UBA) Plc, at the weekend gave a glimpse of the underlying vision and strategies of his leadership at the bank.

Uzoka was recently announced as the successor to the retiring group managing of UBA, Mr. Phillips Oduoza who retires on July 31, 2016 after two terms of leading the bank. Uzoka, whose appointment is still subject to the approval of the Central Bank of Nigeria (CBN), will effectively take over on August 1, 2016.

Speaking after he was introduced as the GMD-designate to shareholders of the bank at the annual general meeting at the weekend in Lagos, Uzoka outlined that the bank’s African subsidiaries are growing stronger and the group has a target to increase Africa’s contribution to the group’s profit to over 25 per cent in 2016 from 24 per cent in 2015.

Uzoka said the group would continue to strengthen its domestic base in Nigeria adding that the group expects to see positive growth from imminent implementation of the 2016 budget.

Audited report and accounts of UBA for the year ended December 31, 2015 showed that gross earnings rose by 10 per cent while profit after tax grew by 25 per cent.

UBA Group’s gross earnings closed 2015 at N314.83 billion as against N286.62 billion recorded in 2014. Profit before tax rose from N56.20 billion to N68.45 billion. Profit after tax also increased from N47.91 billion to N59.65 billion. Earnings per share thus improved from N1.53 in 2014 to N1.79 in 2015.

At the annual general meeting, shareholders approved the bank’s final dividend of 40 kobo per share, bringing the total payout for the 2015 business year to 60 kobo per share or N21.77 billion. UBA had paid an interim dividend of 20 kobo in September 2015.

Read also: UBA records N60b pre-tax profit

Addressing the shareholders, UBA chairman, Plc, Mr. Tony Elumelu pointed out that the bank grew gross earnings by 10 per cent to N315 billion in 2015 in spite of relatively weak liquidity in the Nigerian foreign exchange market, which reduced foreign currency related business and income lines.

He added that the bank successfully managed its costs throughout the year, thus preserving earnings to deliver a profit before tax of N68.5 billion, which translates to 22 per cent growth over its performance in 2014.

Looking into the future, Elumelu warned that developments in financial technology is changing the game in the financial industry, lowering operating costs and broad customer reach and becoming major disruptors within the banking industry.

He however assured that UBA is a part of the leading technology change agents, and thus well positioned to benefit from the brave new world offered by advancements in technology.

Also speaking at the meeting, group managing director, United Bank for Africa (UBA), Mr. Phillips Oduoza, explained that management rigorously identified and eliminated fats in the system and improved on contract negotiations.

He added that the bank eliminated overlapping functions and structures and continued to leverage technology in its operations, particularly in servicing its over eight million customers through low cost service channels.

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