Business

UBA: A Bank of Many Firsts, in pursuit of Customer Satisfaction

Published

4 years ago

April 5, 2021

UBA: A Bank of Many Firsts, in pursuit of Customer Satisfaction

United Bank for Africa Plc has carved a niche for itself and continues to stand out as the leading Pan-African financial institution, consistent in introducing numerous first rate innovative products with customer satisfaction in mind. To this end, the bank has invested significantly in cutting edge technology in a bid to boost its overall services to customers. The development is a further demonstration of the bank’s unalloyed commitment to ensuring premium services as well as reaffirming its dominance across Africa.

In a bid to reinforce its commitment to first-rate experience, the lender introduced Leo the Chat Banker in 2018 and did not rest on its oars as it innovated with more firsts launching on facebook, in 2019 and on WhatsApp, following which it created Leo Apple Business Chat’ for Ios on iPhone and iPad. A feat its peers are yet to replicate, even though some banks like Diamond Bank now merged with Access Bank tried with Ada and StanbicIBTC Bank’ Sami. First Bank and GT Bank also launched on WhatsApp. They were all unable to replicate the success story of UBA’s Leo.

Recently, UBA has again raised the bar, with another first of its kind, that is currently setting the pace in the digital banking space. The New UBA mobile App, launched in March is a one stop shop for all banking transactions like never seen before on the African continent and is already a massive success with customers who have embraced the app wholeheartedly with more than 200,000 downloads since its launch in March. A testament to the excellent unique offerings imbued in the new mobile app.

The new app, which is a total upgrade from the former app, has new features including four amazing themes and a more amazing graphical interface, just as it has another never-been-seen before feature where it blurs your account balance when you cover your phone’s censor.

Armed with benefits and features designed to give its customers increased control and accessibility to carry out transactions with ease, UBA Digital Banking Group Head, Kayode Ishola, said the app has been tailor-made to give customers what they want, how and in the way they want it. He made this disclosure during a recent virtual press parlay with both local and international media, adding that a lot of investment in cutting edge technology and attention to details was put into the new mobile app.

According to him, the new UBA Mobile App is “your personal finance manager built with a distinctive user interface that will change the face of banking. “With this app, we are reimagining banking as our engagement has moved from being channel-based to being platform-based.

“The speed of the platform has been made to match the speed of light as we have cut down significantly on the number of processes expected to carry out your transactions. Interestingly, we have worked towards creating behavioural insight for our customers and working around this to address the real needs of our customers using the Omni channel platform and running on our open digital platform, which is very interactive and armed with lifestyle services. It is sleek and trendy with seamless user interface”, he added.

On the security features of the app, UBA’s Group Chief Information Officer, Onyebuchi Akosa, said the new platform will revolutionise the way banking services are offered as it will deliver increased personalised banking via a watertight and highly-effective security system.

He said: “The new app has also been built with the best-in-purchase security features and has been modelled appropriately to ensure that all the features are working properly to secure transactions maximally. It is also important to mention that the bank took into consideration the virtually impaired, and thus has used voice recognition as a channel for transaction which suits both convenience and the visually impaired customers.”

Head, UBA SME Banking, Sampson Aneke, on his part noted that the app has been created with a high-level of intelligence because it can work based on frequent transactions.

He added that “it can also speak to the specific country where it is being used as the new mobile app runs concurrently in the 20 countries of UBA’s operation interacting in the different languages and cultures in line with the specific needs and regulation of the country in focus. This all-encompassing platform which boasts of a new user interface because of its sleek, modern nature of delivering seamless experience across several devices; can be used as a budgeting tool, loan application and also allows customers view their expenses according to their various categories such as the amount spent on data within a particular period.”

Beyond lip service, the bank, which is known for its culture of excellent service, has continuously innovated all of its business segments, whilst delivering top-notch operational efficiencies and best-in-class customer service. Over the years, the reward for creating such superior value has come in form of customer satisfaction and numerous local and international awards, thus consolidating their leadership position in Africa. For the bank, those awards are evidence of the diligent execution of its strategic initiatives geared towards customer service fulfillment.

Social Impact

Beyond the multiple zeros that are the underlying goal of every financial institution, UBA is also big on social impacts and customer satisfaction, the latter being a requisite for a rewarding year for the bank. Through its UBA Foundation, its CSR arm that is committed to being a socially responsible company and role model for all businesses in Africa, the foundation is committed to the socio-economic betterment of the communities in which the bank operates, focusing on development in the areas of education, environment, economic empowerment and special projects. The UBA Foundation was incorporated in January 2004.

The bank performs all these social functions while maintaining a sound pedigree as an institution that helps millions across the continent meet their financial goals. In fact, as one of the oldest surviving financial institutions in Nigeria, UBA holds a distinctive position as a general wealth distributor, which makes its financial performance more profound and impactful.

With about 274,000 shareholders, about 72 per cent holding between one and 10,000 ordinary shares, UBA has the most diversified shareholders’ base. It is also one of the most actively traded stocks at the Nigerian stock market, and a major influence in the traditionally most active banking sector. A total of 6.95 billion ordinary shares of UBA were traded at the stock market in 2020 while the bank’s share price rose by 21 per cent, more than a double of average return of 10.1 per cent recorded by the NSE Banking Index.

With more than 21 million customers and 1,000 business offices and customer touch points in 20 African countries, UBA is a systemically important, tier one financial institution. Despite the disruptions caused by the COVID-19 pandemic, the group remained a major developmental partner for its host communities, environment and economy as it donated N5.10 billion to various corporate social responsibility (CSR) initiatives during the year, through its foundation.

Impressive Performance

Despite the challenges the year brought including the COVID-19 pandemic, the bank’s performance stood out- while the deposit base increased by 48.1 percent, the bank’s profit before tax rose to N131.9 billion compared with N111.3 billion in 2019; profit after tax rose by 27.7 per cent to N113.8 billion compared with N89.1 billion in 2019 and earnings per share thus rose by 26.8 per cent from N2.52 in 2019 to N3.20 in 2020.

A further breakdown showed that the total assets last year leapt two spaces to N7.70 trillions from N5.62 trillion in 2019, about 37 per cent increase. The balance sheet performance is reflective of the overall performance outlook for the pan-African banking group. Market pundits are placing a “buy” note on UBA on the heels of the 2020 performance. UBA has the highest upside potential among the five stocks recommended by Cowry Asset Management Limited as the stock market reopened.

The 12-month report showed that gross earnings rose by 10.8 per cent to N620.4 billion in 2020 compared with N559.8 billion recorded in the corresponding period of 2019. The overall top-line performance was driven by growths across the income lines. Interest incomes had grown from N404.83 billion in 2019 to N427.86 billion in 2020.

Net interest income stood at N259.47 billion in 2020 as against N221.88 billion in 2019, fees and commission incomes also rose from N110.56 billion in in 2019 to N126.94 billion in 2020 while net trading and foreign exchange income increased from N37.63 billion to N59.45 billion. Further segmented analysis showed the continuing growth and profitability of the group’s non-Nigerian subsidiaries, providing diversification that helped to cushion and insulate the group from market fluctuation.

Meanwhile, the “Rest of Africa”-other African subsidiaries excluding the main Nigerian market, saw turnover growth from N166.27 billion in 2019 to N232.06 billion in 2020, repeating the same trend in pre-tax profit, which rose from N52.15 billion to N75.12 billion. The group also recorded increased incomes and profit across its business lines with corporate banking, retail and commercial banking and treasury and financial markets recording N201.02 billion, N214.39 billion and N204.96 billion respectively in 2020 as against N181.4 billion, N193.46 billion and N184.95 billion respectively in 2019.

The businesses also sustained improved profit. Corporate banking netted N62.32 billion in 2020 as against N47.9 billion in 2019. Retail and commercial banking recorded net profit of N30.23 billion as against N24.36 billion while net profit on treasury and financial marker dealings improved from N16.23 billion in 2019 to N21.22 billion in 2020.

On the cost side, operating expenses grew by 10.1 per cent to N249.8 billion, as against N217.2 billion in 2019, well below average inflation rate of 13.2 per cent for the year, thus reflecting the bank’s cost effectiveness. Despite the challenging business environment during the COVID-19 pandemic and the resultant effect on economies globally, the bank’s profit before tax rose to N131.9 billion compared with N111.3 billion in 2019. Profit after tax rose by 27.7 per cent to N113.8 billion compared with N89.1 billion in 2019. Earnings per share thus rose by 26.8 per cent from N2.52 in 2019 to N3.20 in 2020.

The balance sheet also showed that UBA recorded a remarkable 24 per cent growth in loans to customers at to N2.6 trillion while customer deposits increased by 48.1 per cent to N5.7 trillion, compared with N3.8 trillion recorded in the corresponding period of 2019, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the further deepening of its retail banking franchise. While the paid up capital remained unchanged at N17.1 billion, total equity funds rose from N597.98 billion in 2019 to N724.15 billion in 2020, driven mainly by increase in retained earnings and other reserves.

Management Outlook

Re-echoing the stance of analysts on the strong performance of the bank despite the global pandemic, UBA Group Managing Director, Mr. Kennedy Uzoka said last year was important for the UBA Group, as it gained further market share in most of its countries of operation.

According to him, the bank ended a very challenging year on a reassuring note as shown by double-digit growth in both top and bottom lines. Despite the tumultuous impact of the pandemic globally and across UBA’s 23 countries of operation, the group created N519 billion additional loans as it continued to support customers and their businesses.

He outlined that customer deposits grew 48.1 per cent to N5.7 trillion, driven primarily by additional N1.8 trillion in retail deposits, assuring that as a global bank, UBA remains well capitalised and determined to successfully drive financial inclusion on the continent through innovative products and vast network.

He pointed out that the bank’s capital adequacy and liquidity ratios came in at 22.4 per cent and 44.3 per cent were well above the respective regulatory minimum of 15.0 per cent and 30 per cent.

“Our primary strategy will continue to focus on providing excellent services from our customers’ standpoint, putting the customer first always. Looking ahead, I am inspired by the achievements we have made since the launch of our transformation programme. We have expanded market share considerably across the geographies where we operate and are consolidating our digital banking leadership in Africa. We will continue to leverage our diversified business model and dedicated workforce to further strengthen our position as ‘Africa’s Global Bank,” Uzoka said.

Group Chief Financial Official, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh said the persistent low interest rate environment in 2020 exerted significant downward pressure on margins, notwithstanding, the bank’s interest income for the year grew by 5.7 per cent to N427.9 billion, driven by 8.2 per cent and 7.5 per cent year-on-year growth on interest income on loans and investment securities respectively.

Essentially, the 2020 performance no doubt shows the resilience of the uniquely diversified operating model of the UBA, and brings to bear the gains from continuing investments in its pan-African outlook. Analysts are optimistic the group will sustain its growth trajectory, given expected improvements in national and global environments in 2021

Related Topics:Featured UBA banking and finance

Up Next

Edo Women Group Call out Tina Leemon Ikpea for Crashing Businessman’s 39year old Marriage

Don't Miss

MTN Battles Nigerian Banks, Forces Unbearable Policies On Aggregators

Sahara Weekly

Sahara weekly online is published by First Sahara weekly international. contact [email protected]

Business

EXCLUSIVE: Presidency Weighs Major Reforms in Broadcast Sector Amid Pay-TV Controversy

Published

1 day ago

March 9, 2025

Sahara Weekly

EXCLUSIVE: Presidency Weighs Major Reforms in Broadcast Sector Amid Pay-TV Controversy

Abuja – The National Broadcasting Commission (NBC) may be on the brink of a major regulatory shake-up as concerns over the pricing strategies, content access, and advertising monopolies of Nigeria’s dominant pay-TV operators come under intense scrutiny.

Though no formal directive has been issued, remarks made by NBC Director-General Charles Ebuebu during an informal exchange with journalists after attending an industry event in Lagos have set the industry on edge, fueling speculation that the regulator is finally moving to rein in exploitative market practices

The urgency of the situation has been further underscored by a formal petition from DAAR Communications, owners of Africa Independent Television (AIT), which accused major pay-TV platforms of stifling competition and using their market power to restrict access to free-to-air (FTA) content. But if that wasn’t enough to trigger alarm bells in government, what followed surely did—a sudden subscription price hike by one of the country’s biggest pay-TV operators, despite the naira gaining strength and inflation beginning to ease.

The timing of the price increase has sparked outrage, with consumer groups questioning why a company would raise costs at a time when the price of other goods and services is falling. The Federal Competition and Consumer Protection Commission (FCCPC) has since challenged the draconian pricing strategy, and in a rare public alignment, the NBC has now declared full support for the FCCPC’s intervention.

Behind the scenes, the presidency has now directed the establishment of high-level ad-hoc teams within the regulatory agency to conduct a short-term review of the sector, signaling that the federal government is not only watching but may be preparing to act decisively.

THE FTA CRISIS: PAY-TV OPERATORS BLOCKING ACCESS TO FREE CONTENT

One of the most contentious issues under review is how pay-TV companies have turned free-to-air (FTA) channels into part of their paid subscription models. While these channels are meant to be freely accessible to all Nigerians, pay-TV operators have long bundled them into premium packages, ensuring that subscribers must pay to access content that is supposed to be free.

This deliberate restriction of FTA access has allowed pay-TV operators to meet their regulatory obligations while suppressing independent broadcasters, effectively cornering the market and forcing consumers into unnecessary payments.

Industry sources suggest that NBC’s review could lead to an enforceable policy ensuring that FTA channels remain truly free, whether a viewer is subscribed to a pay-TV package or not. Such a measure would restore fair competition, allowing independent broadcasters to reach their full audience without interference from dominant platforms seeking to control distribution.

This potential shift is widely seen as a direct challenge to the business model of major pay-TV platforms, which have long relied on their ability to bundle FTA channels into their paid offerings, forcing viewers to subscribe even when they don’t need to. Should NBC move forward with such a policy, it would represent one of the most significant regulatory interventions in the Nigerian broadcast sector in years.

THE ADVERTISING MONOPOLY: TIME TO BREAK THE STRANGLEHOLD?

Beyond price hikes and content access, another key issue under scrutiny is the monopolization of advertising revenue in the pay-TV sector. Industry analysts have long pointed out that a few dominant platforms control a disproportionate share of the advertising market, leaving independent broadcasters struggling to secure funding.

NBC’s review is expected to consider measures to cap the percentage of advertising revenue that pay-TV operators can command. The goal is simple—redirect a greater share of the market to independent broadcasters who rely solely on ad revenue to survive.

Additionally, NBC is said to be considering expanding the digital access fee, currently applied to certain pay-TV services, to all platforms benefiting from the Nigerian media market, including digital streaming services. This would ensure that all players profiting from Nigerian audiences reinvest a fair share into local content production, jobs, and infrastructure development, aligning with the government’s broader economic plan to expand the creative sector into a N3 trillion industry by 2030.

The growing influence of digital streaming services like Netflix, Showmax, and Amazon Prime may also come under increasing regulatory focus. While these platforms have provided greater content diversity and access to global programming, there is concern that they have been allowed to profit from the Nigerian market without making sufficient reinvestments into local content production.

Sources indicate that NBC’s review may explore policies to collaborate with streaming platforms and reinvest a percentage of their Nigerian revenue into local productions. This would ensure that the country’s content creators benefit from the streaming boom rather than simply serving as consumers of foreign content.

NBC AND FCCPC: A UNITED FRONT AGAINST PRICE HIKES

The NBC’s decision to publicly align with the FCCPC on the issue of unjustified price increases signals a rare moment of regulatory unity. The fact that subscription costs are rising even as the naira strengthens and inflation drops raises serious questions about whether consumers are being taken advantage of by operators who are using their market control to set arbitrary prices.

Industry insiders suggest that the regulatory stance could set the stage for a wider investigation into pay-TV pricing structures, particularly how these companies justify their frequent price hikes despite economic conditions that suggest they should be lowering costs, not increasing them.

The possibility of sweeping regulatory intervention has split opinions in the industry.

Independent broadcasters and content creators see this as a long-overdue correction. For years, they have been locked out of fair competition, watching as pay-TV operators dominate advertising revenue, control content distribution, and force subscribers to pay for channels that should be free.

However, major pay-TV providers have been more cautious, with industry executives privately warning that increased regulation could “discourage investment” and “disrupt business models”.

One senior pay-TV official, speaking anonymously, expressed concern that the review process may introduce “unnecessary uncertainty” into the market. “There is a way to ensure fair competition without damaging the industry’s ability to attract investment,” he said.

THE PRESIDENCY’S NEXT MOVE: TO ACT OR TO WATCH?

While the presidency has not issued any direct public orders, its decision to mandate an immediate review of pay-TV and broadcast practices suggests that it is closely monitoring the situation.

The Tinubu administration has repeatedly emphasized the importance of creating a media and entertainment sector that works for all players, not just a select few. Sources suggest that the outcome of NBC’s review will be closely aligned with the government’s economic and creative sector goals—but how far the administration is willing to go remains to be seen.

WHAT HAPPENS NEXT?

With high-level regulatory reviews underway, public backlash against rising subscription prices, and growing government interest in breaking monopolistic control, Nigeria’s pay-TV industry is at a crossroads.

If the NBC follows through on its review, Nigerians could soon see FTA channels that are truly free, advertising revenue that is more evenly distributed, and streaming platforms that reinvest in local content rather than extracting profits without giving back.

But if the dominant pay-TV operators successfully lobby their way out of meaningful reforms, business will continue as usual—with Nigerians paying higher subscription costs for channels that should be free, independent broadcasters struggling for survival, and corporate giants dictating the rules of the game.

One thing is certain—the era of unchecked dominance in Nigeria’s broadcast sector is being challenged like never before. Whether this results in real change or yet another quiet backroom settlement remains to be seen.

Business

Uju Kennedy Ohanenye: conscientious public servant deserves commendation, not trial By Victory Oghene

Published

1 day ago

March 8, 2025

Sahara Weekly

Uju Kennedy Ohanenye: conscientious public servant deserves commendation, not trial

By Victory Oghene

The shark- infested and mine-lined Nigerian politics has often proved to be graveyards of men and women of conscience.
The examples are legion from professor Tam David West to Tai Solarin to Dr.Olu Onagoruwa. The trial and tribulation of the former Minister of Women Affairs , Uju Kennedy Ohanenye is the latest in the long line of public figures who have given an unblemished account of themselves but finding themselves being on trial, a classic case of irony.

Highlighting Ohaneye’s unprecedented pedigree is no longer news much of it is in public domain.

Sources at the ministry of women affairs told NATIONAL WAVES that “the sum of N350 million was approved for her for travels. She travelled with only two aides which is rare among ministers or high ranking public servants. In spite of that she only spent N21 million, returning the balance to Wale Edun, the minister of finance and sought for approval to enable her use it to empower women.”

It was gathered that the sum of
IN70million was earmarked for her by the office of the Vice President to travel to Bahamas, but in a manner so unlike some other high ranking government officials, she wrote to the Deputy Chief of Staff that her presence was not needed in that trip. Thirdly, she was said to have raised the sum of N550million through private donation for the empowerment of women shortly before she was relieved of her job. ‘She refunded the money to the donors when she was relieved of her job”, a ministry source familiar with the matter disclosed to this medium.

She was said to have also specifically returned N100million to Authur Eze. She also refunded donations from Tony Elumelu’s UBA and others.

Professor Adeagbo Moritiwon a political scientist told this medium that “her removal was not due to lack of performance or competence but more to do with politics prevailing over every other consideration. Her case is just like Ade Ojo.”

So why did the EFCC go after such a minister who has displayed exemplary conduct in office.
The mere fact that the former minister did not run away but honorably honoured the EFCC invitation testifies to no hidden agenda.

Operatives of the Economic and Financial Crimes Commission were said to have quizzed her over alleged links to the misappropriation, violation of procurement processes, and diversion of public funds amounting to ₦138million.

Another source at the ministry said ” invitation does not mean guilt. If the EFCC had cause to raise an issue, then there is no crime in that. Inviting her to clarify matters is a routine thing. At the end of the day those who know her can bet on it that she will come out unscathed.”

The funds in question were allegedly misappropriated during the disbursement of the 2023 budgeted allocation for the ministry.

While clarifying her visit to the anti-graft agency via her x handle,
Ohanenye said that she was invited and as a law abiding citizen, honoured the invite of the anti graft agency.

“As a former public servant, I acknowledge that inquiries regarding past official activities are a standard part of ensuring accountability. In this spirit, I willingly honored the invitation from the Economic and Financial Crimes Commission (EFCC) on March 6, 2025, concerning allegations of a 138 million Naira diversion.

“I arrived at the EFCC headquarters at 2:15 PM, and the substantive discussions commenced at 2:50 PM. During this time, I provided comprehensive clarifications regarding my actions and expenditures throughout my tenure as the Minister of Women Affairs.I rounded up by 6:50pm and left thereafter

“I commend the EFCC for their professionalism and hospitality, and I appreciate the opportunity to address the matters that have recently been circulating in the media.

“I extend my sincere gratitude to President Asiwaju Bola Ahmed Tinubu for the privilege of serving my country and positively impacting the lives of many. I also express my appreciation to First Lady Senator Oluremi Tinubu for her steadfast support of myself and Nigerian women.

“I remain fully committed to cooperating with the EFCC and will be available for any further inquiries. It is the duty of every government official to be transparent and accountable for their time in office.

“During my tenure, my team and I executed our duties diligently, utilizing available resources effectively, and even supplementing with personal funds, demonstrating our dedication to the success of the Renewed Hope Agenda for Nigerian women and children.

“I assure that the facts and information will ultimately demonstrate the integrity of my actions”

While she held forte as Woman Affairs Minister, Ohanenye recorded a rare feat as regards her performance s

She explicitly understood that public service is for adding value to society.

Ohanenye profoundly had an in-depth perception of the purpose of government particularly Chapter II of the 1999 Constitution of the Federal Republic of Nigeria (as amended) which outlines the ‘Fundamental Objectives and Directive Principles of State Policy’ despite the fact the chapter as presently provided is not justiciable. Section 14 (2) supra provides thus; “It is hereby, accordingly, declared that; (b) the security and welfare of the people shall be the primary purpose of government”.

It would be recalled that Ohanenye was among five ministers relieved of their duties following the 19th Federal Executive Council meeting held at the State House in October 2024.

In her place, President Bola Tinubu reappointed the former Minister of State for Police Affairs, Imaan Suleiman-Ibrahim, as the new Minister of Women Affairs.

Oghene a renowned Journalist writes from Lagos

Business

Why You Should Visit EMERALD GARDEN SANCTUARY in Pretoria

Published

5 days ago

March 5, 2025

Sahara Weekly

Why You Should Visit EMERALD GARDEN SANCTUARY in Pretoria

Looking for the ultimate relaxation experience? Emerald Garden Sanctuary offers a peaceful escape in the heart of Pretoria, where your body, mind, and soul can be rejuvenated. With a serene garden setting and a massage studio, you can enjoy treatments that soothe aches, relieve stress, and promote overall wellness.

A Massage for Every Need

From gentle Swedish massages (starting at R280 for 30 minutes) to intense Deep Tissue therapy (add R100 to Swedish rates), Emerald Garden ensures you get the pressure you need. Prefer something even more indulgent? Try a Hot Stone Massage (R500 for 60 mins) or the deeply relaxing Indian Head Massage (R300 for 30 mins).

Holistic Healing for Body & Soul

Reflexology: Treat your feet and improve circulation with sessions starting at R200.

Reiki Healing: Balance your energy and reduce stress (R380 for 60 mins).

Crystal & Gemstone Energy Bodywork: A powerful 90-minute session (R700), with an optional Reiki add-on.

Detox & Refresh in the Steam Room

Enhance your massage with a steam session (starting at R250 for 30 mins). Perfect for detoxing and relaxing muscles before or after a treatment. Just remember—book in advance, as it takes an hour to heat up!

Unique Experiences for Deep Relaxation