Yemisi Izuora
Appraising its performance today at the 53rd Annual General [AGM] of the United Bank of Africa {UBA}, the chairman of the bank Tony Elumelu said that a gross earnings of N290 billion was recorded in the year, an appreciable growth of 10per cent over our performance in 2013, this improved performance he said, was buoyed by the increased volume of transaction across all our service channels and growing share of our customers’ wallet.
He said the bank did well notwithstanding the relatively high cost of doing business in Africa in the year; “we remained prudent in our operations, thus ensuring our profitability in the year. Given increased extraction gains from our unique Pan-African platform, we are optimistic on delivering a stronger performance in 2015.” He said.
Elumelu also expressed his appreciation for the support of all shareholders and reiterated the commitment of the board and management in sustaining the leadership and dominant position of UBA on the continent.
While affirming the bank’s commitment to strict adherence to the best practice in corporate governance, he explained that the bank’s dividend policy in the current financial year was guided by the need to be prudent.
“Though UBA is adequately capitalized with capital adequacy ratios in excess of regulatory requirement, we proactively raised additional capital during the year to further boost our capital base and it would not have been prudent to pay so many dividends after raising capital from the market. Shareholders should however expect higher dividend in future” said Elumelu.
The Group Managing Director and Chief Executive Officer of the bank, Phillips Oduoza, also added that the bank has consolidated its visibility across the African continent, noting that the benefit is fast reflecting in the contribution of the African subsidiaries to the Group’s profit.
“In 2014, the African subsidiaries contributed one-fifth of our earnings, a unique diversification benefit which UBA offers its shareholders. We will profitably and prudently grow our market share in all the 19 African countries (including Nigeria), where we operate, as we look forward to delivering superior returns to our shareholders,” he added.
The shareholders of the bank also commended the company’s board on its 2014 performance, as they approved a dividend of N0.10 per share and for increasing shareholders value on investment through dividend payout and adherence to corporate governance principles,
Also speaking at the AGM, the National Chairman, Progressive Shareholders Association of Nigeria, Boniface Okezie expressed satisfaction with the improved performance recorded by the bank during the year under review, as well as the state of affairs in the bank especially for abiding by strict corporate governance principles.
He, however, urged the company to consolidate on the performance by ensuring that all the subsidiaries contribute to the overall growth of the company.
He berated the Central Bank of Nigeria (CBN), monetary policies which failed to take into consideration the plight of shareholders and the harsh economic situation in the country.
“The CBN policies are killing these banks. They are not creating room for banks to pay dividend and unless they relax these policies, the banks would continue to pay us peanut.”
Another Shareholder, Alhaji Kabiru Tambari commended the Management for their prudent management of the affairs of the bank.
He lauded the bank for focusing on both the short and long term growth, as well as its ability to sustain leadership position over the long term.