| Type | Public NSE:UBA |
|---|---|
| Industry | Financial Services, Banking, Investment Services |
| Founded | Nigeria (1949) |
| Headquarters | UBA House, 57 Marina, P.O. Box 2406, Lagos Nigeria |
| Key people | Chief Israel C. Ogbue, Group Chairman, Phillips Oduoza, Group Managing Director/Chief Executive Officer |
| Products | Wholesale Banking Institutional Banking Investment Banking Consumer Banking Microfinancing Prestige Banking Online banking Non-Resident African Banking |
| Revenue | NGN 169.6 billion1(approx. USD 1.5 billion2) (2008) |
| Net income | NGN 75.4 billion1 (approx. USD 650 million2) (2008) |
| Employees | 14,000 (770 offices in 19 African Countries, New York, London and Paris) |
| Subsidiaries | UBA Capital Africa, UBA Capital (Europe), UBA Trustees Limited, UBA Pensions Custodian Limited, UBA Asset Management Limited, UBA Stockbrokers Limited, UBA FXMART (Bureau de Change), UBA Microfinance Bank, UBA Registrars, UBA Metropolitan Life Insurance Company Limited, UBA Global Investor Services |
| Website | http://www.ubagroup.com/ |
United Bank for Africa Plc (UBA) is a public limited company incorporated in Nigeria in 1961 and headquartered in Lagos.[1] It is one of Africa’s leading financial institutions offering universal banking to more than 7 million customers across 750 branches in 19 African countries and a presence in New York, London and Paris. Formed by the merger of the commercially focused UBA and the retail focused Standard Trust Bank in 2005, the Bank purports to have a clear ambition to be the dominant and leading financial services provider in Africa.[2] Listed on the Nigerian Stock Exchange in 1970, UBA claims to be rapidly evolving into a pan-African full service financial institution.[3] The Group adopted the holding company model in July 2011.
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UBA’s history dates back to 1949 when the British and French Bank Limited (“BFB”) commenced business in Nigeria. Following Nigeria’s independence from Britain, UBA was incorporated in 1961 to take over the business of BFB. Today’s United Bank for Africa Plc (UBA) is the product of the merger of Nigeria’s third and fifth largest banks, namely the old UBA and the former Standard Trust Bank Plc, and a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). The union emerged as the first successful corporate combination in the history of Nigerian banking.[4]
Since its historical emergence from the merger of former Standard Trust Bank and UBA Plc, the UBA Group has positioned itself to be Nigeria’s dominant bank and a leading player in Africa continent.[5] In 2000, Europe’s frontline Finance and Economy magazine, Euromoney named UBA the Best Domestic Bank in Nigeria,[6] in recognition of the bank's exponential growth in the past couple of years and the comparatively higher inflow of investment from global finance players;[7] and in 2007, Pan-African Newsmagazine awarded UBA the Emerging Global Bank Award indicative of the international bank which has most positively influenced the African continent.[8]
UBA has consistently positioned itself as the bank to beat in Nigeria's financially strong banking industry.[9] It has grown its total assets by over 345.01 percent in the last five years, up from NGN 198.68 billion ($1.656 billion) in 2002 to NGN 884.14 billion ($7.368 billion) in 2006.10 More recently, at the end of the 2008 financial year, it recorded gross earnings of NGN 169.6 billion, profit before tax and exceptional items of NGN 56.8 billion, profit after tax of NGN 40.8 billion and total assets of NGN 2.2 trillion.[10]
UBA has the largest distribution network in Nigeria with over 6.5 million customers in personal, commercial and corporate market segments. As of 30 September 2008, it had over 650 business offices, 296 deployed POS and 1332 ATMs and pioneered cheque acceptance ATMs in Nigeria. Its over 14,000 staff globally are also referred to as “lions and lionesses”. Regionally, the Group has a presence in 18 African countries and in all major financial centers.10 The bank currently operates in Nigeria, Ghana, Ivory Coast, Cameroon, Sierra Leone, Liberia, Uganda, Benin, Burkina Faso and Senegal, and has unfolded plans to expand its banking operations to 15 additional countries in Africa come 2009.[11] Records indicate that UBA is the only sub-Saharan bank with dual presence in the U.S. and the UK[12] with a US regulated branch presence in New York since 1984, UBA Capital (Europe) in London which was established as a UK regulated investment banking operation in January 2008 and a representative office in Paris, France.
Under the direction of its GMD/CEO, Mr. Phillip Oduoza, the management team of the group is made up of people with skills in various backgrounds as well as depths of experiences (garnered from national and international institutions).
1. Chief Israel C. Ogbue, Non-Executive Chairman
2. Phillips Oduoza, Group Managing Director/ Chief Executive Officer
Executive Directors
3. Kennedy Uzoka, Deputy Managing Director Ag., UBA Plc
4. Emmanuel Nnorom, Executive Director, Group Executive Office, UBA Holdings Plc
5. Rasheed Olaoluwa, Chief Executive Officer, UBA Africa
6. Victor Osadolor, MD/CEO, UBA Capital Holdings
7. Ifeatu Onejeme, Executive Director, Corporate and International Banking
8. Alhaji Abdulqadir J. Bello, Executive Director, Risk Management
9. Femi Olaloku, Group Chief Operating Officer
Non-Executive Directors
10. Chief Kolawole Jamodu, OFR, Director
11. Adekunle Olumide, OON, Director
12. Foluke Abdul-Razaq – Director
13. Runa N. Alam – Director
14. Ja’Afaru Paki – Director
15. AMB. Joseph Chiedu Keshi – Director
16. Paolo Di Martino – Director
17. Alhaji Garba Ruma – Director
18. Yahaya Zekeri – Director
19. Angela Nwabuoku – Director
UBA Group’s operating structure is organized around seven Strategic Business Units(SBUs) and four Strategic Support Units(SSUs)3, informed by the need to reinforce its leadership in service delivery, relationship management and the execution of its strategy. In addition, the GMD/CEO is supported by the Group Executive Office consisting of the Strategy Office, the Corporate Transformation Office, the Chief of Staff and Advisers to the GMD/CEO.
• UBA PLC Nigeria-North
UBA PLC Nigeria-North UBA Nigeria North covers the Northern region of Nigeria, whose economy is largely agrarian in nature.
• UBA PLC Nigeria-South
UBA Nigeria South covers the southern part of Nigeria constituting 18 of the 36 states of the Federation. It provides services to large multinational and local customers across various industry lines including Oil and Gas, conglomerates, FMCG, construction.
• UBA Africa
UBA Africa was set up to take advantage of trade financing opportunities across continent.
• UBA International
UBA international has been created to provide wholesale, correspondent, commercial, consumer and transactional banking services outside Nigeria. It has driven the bank’s expansion into UK, America, and Asia.
• UBA Global Consumer Bank
• UBA Institutional Banking and Subsidiaries
UBA Institutional Banking is responsible for developing and managing business relationships with banks and other financial institutions across the globe and integrating these relationships with the rest of UBA.
• UBA Product Sales Division
• UBA PLC – (the Bank) - The flagship operation of the Group consisting of UBA PLC Nigeria-North and UBA PLC Nigeria-South.
• UBA Capital Africa – This is the investment banking arm covering the African market. The principal activities include Debt & Equity Capital Markets; Sales & Trading; Corporate Finance and Research.
• UBA Trustees Limited – Nigeria's premier trustee company, established in 1964, with aggregate value of transactions in excess of NGN500 billion. UBA Trustees Limited (“UBAT”) is an off shoot of UBA Asset Management Limited (“UAML”), formally UBA Capital & Trust Limited (‘UCAT”), a wholly owned subsidiary of United Bank for Africa Plc (“UBA”). UAML commenced business over 4 decades ago as UBAT before its subsequent change of name and eventual reorganization which led to the re-incorporation of the new UBA Trustees Limited. Over the years, UBAT has established its dominance as a Corporate Trustee in the Nigerian Money & Capital Markets.[13]
• UBA Global Investor Services- UBA Global Investor Services is a division of UBA Plc providing core and value added domestic custody services to Global Custodians and Institutional Investors in respect of investments in securities across Africa. Their services include:
• UBA Pensions Custodian Limited – UBA Pensions Custodian Limited (UBA Pensions) was incorporated in September 2005 in line with the Pension Reform Act 2004, and is a wholly owned subsidiary of UBA Plc with paid-up share capital of NGN 2bn.[14] One of the licensed pension funds custodians, it aims to provide a custodial haven for the savings of Nigerian workers, with a rapidly growing portfolio of assets in custody in excess of NGN 150 billion.
• UBA Asset Management Limited – UBA Asset Management Ltd (UAML), incorporated in 1964, is a wholly owned subsidiary of United Bank for Africa Plc (UBA). It is licensed by the Securities and Exchange Commission (SEC) to act as Investment Advisers, Portfolio and Asset Managers. UBA Asset Management Limited offers specialized services in the areas of wealth generation and investment management. Products and services include Mutual Funds, Guaranteed Return Investment, Discretionary Portfolio Management, Employee Savings Plan, Personal Portfolio Plan, Sinking Funds, and Management of Special Funds.[15] With over NGN 30 billion in funds under management, UBA Asset Management is Manager and Administrator to four mutual funds and Wealth Manager to the High net worth.
• UBA Capital Infrastructure & Principal Investments – This specialist business unit provides infrastructure development and funding solutions across Africa. This includes strategic alliances, private public partnerships, project finance and principle investments and corporate finance advisory services to infrastructure projects.
• UBA Stockbrokers Limited– The secondary market trading arm of the Group that deals in equities and other fixed income securities in the capital market. With a balance sheet size in excess of One Trillion Naira ($8B), over six million active customer accounts, operating out of the 2 most vibrant economies in the sub-region - Nigeria and Ghana. UBA Stockbrokers Limited has over seven hundred retail distribution outlets as well as presence in New York and Cayman Island.[16]
• UBA Registrars Limited - With over 30 years’ experience in Share Register administration services in Nigeria, UBA Registrars Limited emerged from the former UBA Global Markets Limited then engaged in the business of share registration, stock broking and issuing house. It was incorporated in March 2006 as a wholly owned subsidiary of UBA Plc.
• UBA Metropolitan Life Insurance Company Limited– Formally launched in April 2008 as a joint venture between UBA and Metropolitan Holdings Limited (“Metropolitan”) of South Africa, UBA Metropolitan Life operates in Nigeria with over 100 years Experience in Life Insurance business, Access to over 40 resident full time Actuaries, Strong African Brand, Risk Management expertise, High Corporate governance standards, Large Distribution Network(over 600 branches) and knowledge of the local Nigerian Market. Metropolitan is a leading financial services group in individual and group life insurance.
• Consumer Banking - Consumer Banking provides customized products & services for individuals and organisations. The services offered include:
• UBA Capital Europe - Established as UK regulated investment banking operation in January 2008.
UBA Plc claims to be committed to high standards of corporate governance. Strong corporate governance practices are allegedly the foundation of the Bank’s risk and control frameworks and supposedly ensure a decision making process that will enhance and protect the interests of all stakeholders. During the year ended 30 September 2008, UBA complied with the provisions of the Group’s Code of Corporate Governance which is published on www.ubagroup.com and the Code of Corporate Governance for Banks Post Consolidation, issued by the Central Bank of Nigeria (“CBN”).
1. Continuous compliance with the principles laid out in the following codes of corporate governance:
2. Internal monthly review of compliance with best practices in corporate governance.
3. Institutionalised evaluation of corporate governance practices of the Board by external consultants.
4. Continuous director and employee training programmes on best practices in corporate governance.
5. Tracking and implementation of best practices in corporate governance. 6. Adoption of International Financial Reporting Standards (IFRS), advanced approaches of Basel II Prudential Standards, Committee of Standards Organisation (COSO) compliance; and plans to implement the South African King III corporate governance code, which will be implemented during the course of the 2009 financial year.[19]
Presently UBA has a 20-member Board led by a Chairman who is a non-executive Director. There are eight executive Directors on the Board, including the Group Managing Director (“GMD”), Philips Oduoza, and 11 non-executive Directors. The Board has appointed two of the Directors as Independent Directors, subject to CBN approval.
It is the responsibility of the Board to provide strategic direction for the Bank. It reviews and approves the major strategies, financial and other objectives and plans of the Bank. It also approves the budget of the Bank. The Board ensures that adequate systems of internal controls, risk management, financial reporting and compliance are in place as well as ensuring the processes for evaluating the adequacy of these systems on an ongoing basis. Other functions of the Board include:
The performance of the Board and Directors individually is evaluated by an independent consultant.
During the last financial year four training programmes were organised for Directors. In accordance with best practice in corporate governance, the Directors may take independent professional advice at the expense of the Bank, on technical issues which require professional advice.
UBA announced in June 2009 that as a "key enabler of business management and development", it had adopted the International Financial Reporting Standards (IFRS), Basel II Prudential Standards and Committee of Standards Organisation (COSO) compliance. This is in spite of the 2012 deadline for Basel II implementation set by the Central Bank of Nigeria. UBA is one of Nigeria's four biggest lenders.[20]
As one of West Africa's largest and most profitable banks, there is a need for a social contract between the bank, the community and its people. United Bank for Africa became the first bank in Nigeria to institute a foundation, UBA Foundation. Funded with 1% of PBT, UBA Foundation is committed to the socio-economic betterment of the communities in which the bank operates, focusing on development in the areas of Environment, Education, Economic Empowerment and Special projects (“EEES”). More specifically:
The brand’s corporate identity rests on four core pillars - Efficient, Sound, Personal and Progressive. Its employees are guided by the groups core values called HEIR, an acronym for Humility, Empathy, Integrity, Resilience.
The UBA logo combines the mustard seed legacy of Standard Trust Bank with the typographic UBA logo in predominant red on white.
The red colour purportedly represents energy, boldness, strength, innovativeness, excitement and distinction, all of which are in line with the bank’s dominance aspirations and its alleged dynamism. The white colour, which is supposed to represent purity, brightness and clarity of focus, bespeaks of UBA’s claims to integrity and professionalism. The mustard seed supposedly reflects fertility and sustained growth & development, and connotes "deep personal relationships based on the spirit of selflessness and mutualism".