Big Ticket Funding Drives UBA Loan Book 42%to N971bn  

Several big ticket transactions carried out by the United Bank for Africa Plc in 2013 especially in the power, oil and gas sectors  has led to a significant expansion of its loan book by 42 percent to a new high of N937 billion in 2013.
The bank’s full year financials released to the Nigerian Stock Exchange (NSE) confirms management assurance made in early 2013 to increase its lending support to critical sectors of the Nigerian and African economy. UBA Plc has business operations in m18 other African countries outside Nigeria.
Phillips Oduoza, GMD/CEO UBA Plc, had revealed in 2013 that the bank committed $700 million in funding to the power sector privatization exercise in Nigeria, financing different investors to acquire the power assets put on sale by the Federal Government of Nigeria (FGN).
Some of the major deals UBA actively participated in the power sector include taking up $120m (N19.44bn) of the financing in respect of Transcorp Ughelli Power Plant. 
The bank also acted as Mandated Lead Arranger, underwriting the entire facility of $122m (N20bn) for Kann Utilities’ acquisition of the Abuja Electricity Distribution Company, financing the payment of 75 percent acquisition of 60% equity stake in Ikeja Electricity Distribution Company while the bank also   threw its financial weight behind Aura Energy for the Acquisition of Jos Electricity Distribution Company, acting as the lead arranger for N9.6 billion to finance the payment of 75 percent of Aura’s 60 percent equity stake in Jos Electricity Distribution Company.
UBA also successfully arranged debt financing of US$68 million as well as secured equity investment from a strategic and technical investors for the acquisition of the Shiroro Hydroelectric Power Plc by North South Power Company Limited.
The significant increase in lending had a positive impact on the bank’s released financials with interest income rising significantly by  23.8 percent to N186 billion while fee and commission based income rose 5.1 percent to N50.01 billion.
Analysts were also impressed with the bank’s lending process as despite the significant in lending portfolio, the bank has been able to reduce the incidence of non-performing loans on its books well below the industry average and regulatory threshold. The bank’s financial results shows that non-performing loans averages 1.19 percent only in 2013, one of the lowest in the banking industry and well below the regulatory threshold of five percent.
Loan to deposit ratio at 44.3 percent also represent a record in the banking industry, giving it strong headroom to keep expanding its lending portfolio. The financials also showed a healthy liquidity position with a liquidity ratio of 55% as at full year 2013 well above the regulatory minimum of 25 percent.
UBA’s full year results shows gross earnings rose 20.24 percent to a new high of N264 billion in 2013 from N220 billion in full year 2012 while the bank announced a profit of N56.06 billion  for the year, representing an increase of 7.8 percent over the N52.01 billion profit recorded in the corresponding period. 
Speaking on the results, Phillips Oduoza, GMD/CEO of UBA Plc said that the bank’s customer-focused, Corporate Banking and Treasury led business model drove its success for the year.
“UBA had a good performance for full year 2013. This performance puts us in a position to continue to pursue our goal to achieve Industry leadership in the medium term. We were also able to gain considerable strides in our project Alpha initiatives by improving customer service delivery and leveraging our balance sheet to participate in emerging growth sectors of the economy.” Oduoza explained.
The bank also closed the year with a total assets of N2.64 trillion, an increase of 16.23 percent over the N2.27 trillion in 2012 while total equity increase by 22.1 percent to N235 billion.

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