Business

UBA Plc Cuts Loans Forecast

Published

9 years ago

September 9, 2015

Sahara Weekly

The United Bank for Africa (UBA) has lowered its forecast for 2015 loan growth to 5 to 8 percent from 15 to 20 percent.

This is coming as rising regulatory and economic uncertainty increase risks to lending, the bank said.

The banks CEO Phillips Oduoza told an investor call that the bank would maintain a conservative approach to lending for the second half of the year with a view to balancing risk with returns.

Loans grew 8.5 percent in the first half with foreign currency loans accounting for 30 percent of total 1.16 trillion naira ($5.8 billion) loan book. That compares with 14 percent growth in loans last year.

Oduoza said the bank would maintain its other forecasts. He forecast 2015 return on equity (ROE) would be above 20 percent, up from 19.2 percent last year. ROE hit 22.3 percent in the first six months of the year.

“We have revised downwards our loan growth target … given renewed uncertainity in the global and domestic market we would maintain a conservative approach,” Oduoza said.

Nigeria’s economy slowed sharply to 2.35 percent in the second quarter from 6.54 percent a year ago as lower crude prices took its toll on Africa’s biggest economy and top oil producer.

The drop in crude prices also hit the currency market, prompting the central bank to tighten access to dollars in a bid to curb speculation on the naira, in turn hurting bank revenues from foreign exchange activities.

Oduoza noted that regulatory risk was also rising with the government withdrawing public funds from the banking sector.

Last week, UBA posted a pretax profit rise of 35 percent in the first half to 39.04 billion naira ($196 million) and declared a dividend of 0.20 naira, thanks to increased income from business customers.

He said UBA restructured less than 1 percent of its loan book during the first half with 17 billion naira worth of loans made to cash-strapped Nigerian state governments exchanged for 20-year sovereign bonds with the debt office.

A 10 billion naira loan to one oil and gas customer was also restructured in the period, Oduoza said.

UBA shares climbed 2.38 percent to 4.30 naira on the Lagos bourse on Tuesday, outperforming the 1.02 percent rise on the broader stock index.

All but one out of UBA’s 17 African subsidiaries were now generating profits, Oduoza said contributing 22 percent to gross earnings in six months. He expected African subsidiaries to account for half of its total business in the next few years.

“We have concluded the first phase of our African expansion and there’s no need to raise capital in the near future,” he said, adding that the lender would expand to South Africa and Angola after consolidating its existing operations

Business

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

Published

31 minutes ago

December 21, 2024

Sahara Weekly

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

…As Dangote Refinery partners MRS to sell PMS at N935 per litre nationwide at its retail outlets

Sahara Weekly Unveils That The Foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

In his statement, he called on other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”

According to him, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.

Recall that in September, the Federal Executive Council (FEC) under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.

Business

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

Published

7 hours ago

December 21, 2024

Sahara Weekly

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

NNPC Debunks Shutdown Rumors, Confirms Port Harcourt Refinery Fully Operational

The Nigerian National Petroleum Company Limited (NNPC Ltd) has dismissed reports circulating in certain media outlets claiming that the Old Port Harcourt Refinery, which was re-streamed two months ago, has been shut down.

In a statement released by Olufemi O. Soneye, the Chief Corporate Communications Officer of NNPC Ltd, the company clarified that the refinery is fully operational. The statement noted that the facility’s operational status was recently verified by former Group Managing Directors of NNPC during a site inspection.

“Preparation for the day’s loading operation is currently ongoing,” the statement confirmed, emphasizing that allegations of the refinery’s shutdown are baseless and intended to create panic or artificial scarcity in the fuel market.

NNPC Ltd urged members of the public to disregard such misleading reports, labeling them as the work of those seeking to exploit Nigerians.

The Old Port Harcourt Refinery has been in operation since its re-streaming, and the company remains committed to ensuring stability in the supply of petroleum products across the country.

Business

Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

Published

1 day ago

December 20, 2024

Sahara Weekly

Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

In a show of solidarity, the Committee of Banks in Nigeria has extended a helping hand to victims of the September 2024 floods in Jigawa State. On Thursday, a high-profile delegation led by Dr. Oliver Alawuba, Chairman of the Committee and Group Managing Director/Chief Executive Officer of United Bank for Africa Plc (UBA), visited Dutse, the state capital, to present relief materials to the state government.

The donated items, worth several million Naira, included essential food supplies such as rice and cooking oil, along with mattresses and beverages. Dr. Alawuba highlighted that the gesture aimed to alleviate the hardship faced by flood victims and support critical institutions, especially public hospitals, in their efforts to assist those affected.

“We stand in solidarity with the people and government of Jigawa State during this difficult time. This donation is our way of expressing empathy and supporting those who have lost loved ones, properties, and livelihoods,” Dr. Alawuba stated.

The delegation included notable banking leaders such as Mr. Roosevelt Ogbonna of Access Bank Plc, Dame (Dr.) Adaora Umeoji of Zenith Bank Plc, and Dr. (Mrs.) Nneka Onyeali-Ikpe of Fidelity Bank Plc, among others. Their collective presence underscored the banking sector’s commitment to corporate social responsibility and national development.

Governor Malam Umar A. Namadi expressed profound gratitude for the donation, describing the visit as a rare and commendable act of compassion. He assured the delegation that the relief materials would be judiciously distributed to the intended beneficiaries, emphasizing the importance of partnerships in rebuilding lives and communities.

The Committee of Banks also reiterated their commitment to supporting Nigerians during emergencies, drawing attention to previous interventions, including relief efforts during the 2011 and 2013 floods, the COVID-19 pandemic, and security initiatives like the Lagos State Security Trust Fund.

This humanitarian gesture reflects the collective resolve of Nigeria’s financial institutions to foster social and economic growth, making a meaningful impact in times of need.