[UBA] Shareholders Laud UBA’s Board and Management On Bank’s Performance

Pan-African financial services group, United Bank for Africa (UBA) Plc held its 53rd Annual General Meeting (AGM) on Friday, 24th April, 2015 at the Oriental Hotel in Lagos with shareholders commending the board and management   over the 2014 performance of the Bank. 

Shareholders also unanimously approved the annual reports and accounts presented by the Board and all resolutions presented at the AGM, including the dividend proposal. 

Shareholders were particularly excited at the increasing penetration of the Bank in other African countries, lauding the emergence of UBA as the best bank in Cameroon and Senegal for the fourth and third consecutive year respectively. 

The shareholders agreed with the Board’s recommendation of N0.10 dividend per share, which allows the Bank to retain much of its earnings for the benefit of growing its business in the years ahead. They expressed optimism over the ability of the Bank to deliver sustainably high returns to them over the medium to long term.  

"I commend the appointment of Tony Elumelu as the Chairman. He has proven business leader. I am also happy with the bank’s performance, I have no doubt that it will continue to improve with Elumelu as Chairman,” said Mukhtar Mukhtar, one of the bank’s shareholders. 

Another Shareholder, Alhaji Kabiru Tambari commended  the Management for focusing on both the short and long term growth of the bank, saying that shareholders are not only interested in the profit the Bank makes this year but also in the ability of the Bank to sustain its leadership position over the long term. 

In his remarks, Tony O. Elumelu, CON, 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, Elumelu explained 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 much dividend after raising capital from the market. Shareholders should however expect higher dividend in future” said Elumelu.   

Speaking on the bank’s financial performance, Elumelu said, “we recorded a gross earnings of N290 billion in the year, an appreciable growth of 10% over our performance in 2013. This improved performance was buoyed by the increased volume of transaction across all our service channels and growing share of our customers’ wallet. 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.” 

Mr. Tony Elumelu is also optimistic about the bank’s pan-African operations, especially as the threat of Ebola virus eases.  He disclosed that the bank donated towards the fight of Ebola as a responsible corporate entity that is committed to the development of the host communities. 

“It is important to note that we didn't close shop in any of the Ebola affected countries throughout the period of these crisis and none of our staff was affected, given the proactive measures put in place by the Management of the Bank” Elumelu told shareholders. 

Phillips Oduoza, the Group Managing Director and Chief Executive Officer of UBA Plc, Mr. Phillips Oduoza also affirmed that UBA  is gaining critical mass across the African continent and 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” Oduoza said.