UBA reports 46.24% growth in customer deposits

BY: Maclean Kwofi
Kweku Andoh Awotwi (middle), Chairman, Board of Directors, UBA Ghana. With him are Sylvia Inkoom (1st left), Deputy MD, UBA, Olalekan Balogun (2nd right), MD, UBA Ghana and other executives of the bank.

The United Bank for Africa (UBA) Ghana Limited has reported a growth in customer deposits of GH¢4.1 billion in 2021, up from the GH¢2.8 billion posted in 2020.

This represented over 46.24 per cent growth in performance in 2021, occasioning an emphatic vote of confidence in the approach of the bank to support its customers through the difficult times of COVID-19.

Overall, the bank closed the year with a significant growth of 36 per cent of its balance sheet from GH¢3.95 million in 2020 to GH¢5.37 million in 2021.

Macroeconomic volatility

Addressing the 2021 annual general meeting (AGM) of UBA in Accra on May 4, the Managing Director of the bank, Olalekan Balogun, said in spite of the macroeconomic volatility in the global and national environment, the UBA Ghana posted a modest performance in 2021.

He said year-on-year profit before tax declined by two per cent as a result of additional provision on loans following the decision to improve the provision coverage.

He said the continued prudent, effective and efficient risk management measures implemented by the bank caused non-performing loans to reduce significantly from 44.3 per cent to 29.4 per cent.

He observed that the bank increased its liquidity to 86.9 per cent (from 74.3 per cent in 2020.

This, he said, showed a significant improvement in the strength and health of its balance sheet.

“We believe the robust business performance in spite of the challenges, puts the bank on a firm foundation for the year 2022 and beyond,” he said.

The future

The MD noted the bank has laid down a concrete foundation which was going to see it sustainably create value for stakeholders in the years ahead.

According to him, actualising this will need investing efforts and commitments to certain identifiable critical factors.

“Factors included consistently leveraging technology and innovation to ensure effective support to business units and excellent speedy service delivery to customers.

“Spearhead efficiency in both process and cost by streamlining all process steps in order to provide faster, convenient and seamless service to esteemed customers, ensure value for money and eliminate waste.

“Developing our human capital by enhancing people's productivity through training,” he said.

He added that he was more than confident that if the bank was able to execute these strategies, fulfilling expectations will be a foregone conclusion.

Change in shareholding

The Chairman of the Board of Directors at the bank, Kweku Andoh Awotwi, said during the year under review, Consortium Investment Trust (CIT), a Shareholder of the bank entered into an agreement with Teachers’ Fund another shareholder, where CIT sold all its shares in UBA Ghana to Teachers’ Fund.

He said the transaction received the concurrence of the majority shareholder, UBA Pic, and the company secretariat has been directed by the board to affect the necessary regulatory filings and amend the share register of the bank to reflect the new shareholding structure.

“I thank all our customers for continuing to do business with us. Our goal is to delight you and exceed your expectations,” the board chair added.