Business
UBA: A Bank of Many Firsts, in pursuit of Customer Satisfaction
Published
4 years agoon
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
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Oil marketers counter Dangote over allegation of substandard product importation
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has countered the claim by Dangote Refinery that any oil importers landing petrol at a price cheaper than what the refinery is selling are importing substandard products and conniving with international traders to dump low quality products into Nigeria.
The refinery had made the claim on Sunday.
In a statement yesterday, DAPPMAN’s Executive Secretary, Olufemi Adewole, said none of its members was engaging in activities that could shortchange Nigerian fuel users by conniving with anyone to bring in low quality product into the country.
“We’ve said this for the umpteenth time, and it bears repeating, those in the downstream sector business of petroleum products trade are patriotic Nigerians who will not shortchange Nigerian citizens for filthy lucre. Our members are in this business to add value to the businesses of their fellow Nigerians and not to defraud them.
“Prices of products in the international market are dynamic as they’re dictated by prevailing circumstances at every given situation. We calculate our landing costs based on the dynamics of market forces, and the templates are always in the public domain. To claim that if the landing cost of imported product happens to be lower than that of the refinery indicates importation of low quality product is not only preposterous, but also fallacious. In any case, the management of the refinery has, until now, kept its cost and prices close to its chest and put it away from public scrutiny. “
“This type of submission, targeted at projecting our members negatively before the public, cannot help the management’s desire to have oil marketers patronise its products. What will ensure such patronage is transparency, fair play, and readiness to compete with others, including foreign refineries, on an even keel and on a level playing field.”
Adewole said the disclosure by the refinery’s management that the facility has a huge stock of 500 million litres fuel reserve came to its members as news.
“We were surprised because we believe that if the refinery has such huge stock, it’s the marketers that should be put in the know first.
‘Secondly, it was even more surprising given that the news came about the time the refinery was working on rationing what each marketer could pick from the refinery. If they had such huge stock, how is it then that they’re rationing what marketers could buy?
“On all these developments in the industry, the position of our members is very clear: we’ve always played by the rules, and we’ll continue to play by the rules. We’ll not be tired of advocating for a level playing field and a highly competitive and transparent sector that’s devoid of arm twisting and devoid of any form of dominant tendencies,” he said.
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said it had concluded plans to import the best quality petroleum product and sell at far cheaper prices.
The association said it was awaiting the NMDPRA to grant it import licence, saying it “has successfully incorporated a strategic business unit called PETROL.”
Its spokesman, Joseph Obele, said PETROAN had concluded plans with her foreign refinery counterparts and financial partners to import the best quality of PMS and “then sell far less than the present selling rate of PMS in Nigeria.”
He said the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos “are all strategies for Dangote Refinery to push others out of the market…”
Also, Pinnacle Oil and Gas Limited, in a statement by its Chief Executive Officer, Bob Dickerman, denied blending substandard petroleum products.
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Why Protesters demanded Kyari’s resignation
Scores of youths stormed the headquarters of the Nigerian National Petroleum Company Limited on Monday, demanding the immediate resignation of the Group Chief Executive Officer of the company, Mele Kyari.
The protesters, led by some Civil Society Organisations, described Kyari’s leadership as incompetent, citing skyrocketing fuel prices, endless fuel queues, and economic hardship in Nigeria.
The protesters carrying placards with different inscriptions such as “we demand the immediate resignation of Kyari”, among others, said the leadership of the NNPCL boss has failed.
The aggrieved youths led by Abdullahi Bilal of the (Two Million Man March Against Oil Scam Cabal) and Barrister Napoleon Otache and Olayemi Isaac from Citizens and Economic Freedom Rights Activists in Nigeria demanded immediate action to address what they described as failed leadership in managing the country’s oil sector.
Central to the protests were grievances over skyrocketing fuel prices and the never-ending queues, which they argued have driven inflation and plunged millions of Nigerians into poverty.
They also decried the importation of adulterated fuel, which they said is a corrupt practice that harms citizens by damaging vehicles and businesses.
They demanded an immediate halt to these imports and accountability for those responsible, questioning how substandard fuel continues to enter the country despite quality control assurances.
Additionally, the group criticized the unfulfilled promise of the Dangote refinery to resolve Nigeria’s fuel crisis, expressing frustration over the billions of dollars spent on refinery development and refurbishing existing facilities.
They argued that despite these investments, fuel shortages persist, leaving Nigeria reliant on costly imports even as an oil-producing nation.
They urged President Bola Tinubu to intervene by overhauling leadership in the oil sector, enforcing greater accountability, and putting citizens’ needs first. The protesters vowed to continue mobilizing until their demands for reform and transparency are met.
Speaking to journalists during the mass demonstration, Abdullahi Bilal said, “The Two Million Man March stands as a united voice for every citizen who has been betrayed by a system that continues to enrich a few at the expense of many.
“Today, we call for the immediate resignation of the current leadership in the country’s oil sector. Their management has failed Nigerians.
“Under their watch, we have seen fuel prices skyrocket without consultation or consideration of the devastating impact on the people. We have endured fuel scarcity while substandard, adulterated fuel is imported, causing further hardship.
“We demand the complete removal of the fraudulent fuel subsidy regime that has only served to enrich a select few. Full deregulation is necessary to introduce transparency, competition, and fairness to our oil sector.”
On their part, Otache and Isaac, insisted, “This act of economic sabotage has led to endless fuel queues, skyrocketing fuel prices, and unprecedented disruptions in the daily lives of Nigerians.
“We demand an immediate end to fuel queues, transparency, and accountability from all involved parties. We want to know how substandard fuel continues to enter the country despite assurances of quality control.”
On July 7, 2019, former President Mohammadu Buhari appointed Kyari as the 19th GMD of NNPC, but with the passage of the Petroleum Industry Act, his current portfolio is without recourse to previous employment ranks in the company.
NNPCL reacts
Reacting, the NNPCL spokesperson, Femi Soneye, said the protestors lack understanding of the sector.
He explained that contrary to their agitation, the GCEO ensured Nigerians had access to fuel at N620 per litre for over a year, even when the landing cost was above N1,100.
Responding via a chat, Soneye said, “Unfortunately, they lack understanding of the sector. If they were informed, they would know that the GCEO is not responsible for the fuel price increase; in fact, he ensured Nigerians had access to fuel at N620 per litre for over a year, even when the landing cost was above N1,100.”
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Business
Renewed Hope Agenda and Impacts in Aviation* By Mary Odoma
Published
19 hours agoon
November 5, 2024*Renewed Hope Agenda and Impacts in Aviation*
By Mary Odoma
President Bola Tinubu’s knack for selecting top talent is unparalleled. In his quest to build a prosperous Nigeria, he’s assembled an exceptional team. By leveraging their expertise, experience, and strategic insight, he’s fostering national stability, economic growth, and a sustainable future.
His latest win is in Aviation and Aerospace Development, where he’s appointed a fearless and straightforward leader, Festus Keyamo, SAN. Keyamo’s commitment to excellence makes him an ideal fit. President Tinubu’s vision for Nigeria is taking shape, and his leadership choices are truly commendable.
A dedicated, charismatic and impactful lawyer, the dynamic and astute developer is a terror to mischief makers and enemies of progress. A tough and forceful personality who is determined with an ultimate goal to change Nigeria.
Appointed on 21st August 2023 as the helmsman of the Ministry, Keyamo has been unwavering in his drive for positive transformation, reforming the sector and bringing about enduring positive impact in a transparent manner.
His Ministry has the core mandate of regulating air travel and aviation services in the country. It is also responsible for overseeing air transportation, air development, maintenance, provision of aviation infrastructural services and other needs.
A very patriotic Nigerian, Chief Festus has several achievements, in line with the Renewed Hope Aviation Roadmap approved by President Tinubu to his credit.
In a steadfast commitment towards revitalizing the nation’s aviation sector, Mr Keyamo was able to ensure the approval of the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja and Mallam Aminu Kano International Airport (MAKIA), Kano Airports. This is in line with the initiation of the Nigerian Airport Concession Strategy.
Also, in line with the Federal Ministry of Aviation Roadmap, Chief Keyamo initiated the signing of an MoU with the Nile University for the take-off of African Aviation and Aerospace University (AU). This milestone achievement of the Minister aims to integrate and create an avenue for the training, research and development of ready middle-class manpower for the sector.
Equally, under his watch, the pragmatic leader led the Ministry into partnership with the ICRC and also a collaboration with the IFC on infrastructural development. This partnership is to both develop and implement a comprehensive and durable framework that will meet the infrastructural needs of the sector over a long period.
Through Keyamo’s congruence and dynamism, the BASA arrangement is another revolutionary innovation aimed at ensuring the operationalization of direct flights between Nigeria and Brazil.
Keyamo’s motivation and altruistic devotion to having a functional aviation and aerospace sector also moved him to upgrade the Muhammadu Buhari, Airport, Maiduguri to the standard of an international airport. This airport is ready to commence full operation on January 1, 2025
In the area of staff motivation, retirees of the Ministry now have no cause for alarm as their interest is covered. Recently, the Ministry honoured 24 retirees drawn from the lowest rung to the highest. It is in a bid to acknowledge those who have contributed immensely to the growth and development of the sector as Nation-builders.
His prompt response to issues including distress reveals an empathetic personality and someone who is very much alive to his responsibilities. Recently, while reacting to the accident involving a helicopter on the 24th October 2024, Mr Keyamo, immediately upon receiving the distress call, activated protocols aimed at search and rescue operations, mandating all relevant bodies to do everything humanly possible to ensure the safety of the passengers on board the ill-fated vehicle.
The Minister was also actively involved with all the relevant agencies towards ensuring a coordinated response. His active and physical involvement led to the minimization of casualties.
In a show of collaboration and solidarity, the Hon. Minister travelled to far away Marrakesh, Morrocco, to give support to the 2024 International Transport Workers’ Federation (ITF) congress. His presence was to underpin the importance the federal government attaches to the role of the transport workers in stabilizing the aviation sector.
Festus Keyamo as the Honourable Minister of Aviation and Aerospace Development is certainly the best thing that has happened to the industry. He has exhibited passion, dedication and selfless forthrightness in the discharge of his duties and a total comprehension of what it takes to carry out his roles. He is well-groomed for the job and his background has helped him greatly towards shaping the positive impact he is making on society.
Today, Festus has proved that a faithful, disciplined, and dedicated Nigerian can stand out of the crowd because he symbolizes what governance is all about. These feats can only be achieved by a man with the right comportment and conduct in the service of humanity and the fatherland.
Deserving of note is that Chief Keyamo, through the foresight of President Tinubu has well-prepared team leaders appointed as heads of the agencies of the Ministry.
The supportive and collaborative roles of the Nigeria College of Aviation Technology, Nigeria Metrological Agency, Nigeria Civil Aviation Authority, Nigeria Airspace Management, the Federal Airports Authority of Nigeria, and the Nigeria Safety Investigation Bureau (NSIB), have brought about those tangible and noticeable volte-face experienced today in the Aviation sector.
With Keyamo at the helm, Nigeria’s aviation sector is experiencing a transformative shift, thanks to President Tinubu’s foresight in appointing well-prepared team leaders. The Nigeria College of Aviation Technology, Nigeria Metrological Agency, and others are working together to bring about tangible change. Keyamo’s dedication, discipline, and commitment to service have improved Nigeria’s image and reformed the aviation and aerospace sectors.
Odoma is the President of New Nigeria Network [NNN[ writing from Abuja.
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