UBA’s Cost Efficiency Strategy Pays Off as Bank Records 21.4% Growth in Loan Portfolio

The United Bank for Africa (UBA) has recorded impressive financial results in the 2022 financial year, growing its loan portfolio by N605bn.

This was disclosed during the bank’s audited 2022 results conference call (Strategic review and outlook), addressed by the Group Managing Director/Chief Executive Officer, Oliver Alawuba.

The growth in UBA’s loan portfolio is in line with the bank’s objective of stimulating growth in the real sector. Alawuba noted that the bank would maintain a close focus on cost efficiency while strictly controlling operating expenses across the Group, including new strategic investments. The bank reported a cost-to-income ratio of 59.1 per cent.

Despite the volatile market conditions and many operational challenges faced during the financial year, UBA maintained a Capital Adequacy Ratio of 28.3 per cent, which was above the regulatory requirement of 15 per cent. The bank also expressed its commitment to improving performance in the years ahead.

In the current financial year, UBA plans to drive revenue across its business segments while focusing on its customers. The bank’s commitment to providing excellent customer service is reflected in its sustained growth and financial performance.

UBA’s impressive financial results in the 2022 financial year demonstrate the bank’s resilience and strategic focus. With its commitment to cost efficiency and customer satisfaction, UBA is poised for sustained growth and continued success in the years ahead.

Alawuba said, “Our primary business strategy is to continue to focus on the customer – the ‘undisputed employer’, while leveraging the key pillars driving our customer first philosophy i.e. people, process and technology, in delivering positive experiences across all our touchpoints – physical and virtual.

“In addition, our dedicated workforce (People) is very critical to us. We will constantly strive to simplify and streamline our processes, ensure systems stability and reliable IT architecture to support our operations.”

Alawuba added, “Despite the global headwinds across all markets, we commit to doing more this year by driving up revenues across all major business segments, coupled with the relentless pursuit of efficiency group-wide.”