To whom much is given much is no doubt expected, is a popular saying. The United Bank for Africa (UBA) is a big bank that should not leave any stone unturned in ensuring profitability year in year out. More so the reward for hard work is more hard work and so the shareholders of the bank had no choice but to appreciate what the management and board have given them. AMAKA IFEAKANDU writes.
Shareholders’ of United Bank for Africa Plc,(UBA) have commended the company’s board on its 2014 performance for increasing shareholders value on investment through payment of dividend.
They also approved a dividend payout of N0.10 kobo per share.
Speaking at the 53rd yearly general meeting in Lagos at the weekend, the National Chairman, Progressive Shareholders Association of Nigeria, Boniface Okezie expressed satisfaction with the improved performance recorded by the bank during the year under review, as well as the state of affairs in the bank especially for abiding by strict corporate governance principles. He, however, urged the company to consolidate on the performance by ensuring that all the subsidiaries contribute to the overall growth of the company.
He said that the monetary policies which failed to take into consideration the plight of shareholders and the harsh economic situation in the country has continued to affect investors return on investment.
“The monetary policies are not creating room for banks to pay dividend and unless they relax these policies, the banks would continue to pay us peanut.”
Another Shareholder, Alhaji Kabiru Tambari lauded the bank for focusing on both the short and long term growth, as well as its ability to sustain leadership position over the long term.
Reviewing the bank’s performance for the periof,, the Chairman of the bank, Tony Elumelu said, “We recorded a gross earnings of N290 billion in the year, an appreciable growth of 10 per cent 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.”. Elumelu 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.
Affirming the bank’s commitment to strict adherence to the best practice in corporate governance, he explained that 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 many dividends after raising capital from the market. Shareholders should however expect higher dividend in future” he said .
The Group Managing Director and Chief Executive Officer of the bank, Phillips Oduoza, also affirmed that the bank has consolidated its visibility across the African continent, noting that 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,” he added.