Nigeria Interbank Settlement System (NIBSS) reported a N572 trillion cashless boom due to an increase in electronic instant transfers in the country, resulting in a decline in point of sale (POS) transactions.

On Thursday, 26th of August, 2024, NIBSS revealed that electronic instant transfer has increased by 84.37 percent to the N572.63 trillion reported in the first seven months of 2024.

In 2023, NIBSS reported that cashless payments had risen by 55 percent to N600 trillion cashless transactions from N387 trillion in 2022.

The statistics were based on NIBSS cashless transactions tracking across instant payments and PoS channels which recorded N10.73 trillion as the total value of point of sale (PoS) transactions for 2023, compared to N8.39 trillion recorded in 2022.

It was also reported that a 58 percent increase in smartphone penetration in urban areas as of 2022 made mobile applications the preferred method for conducting transactions, driving online transfers, and relegating ATM transactions and PoS usage.

“Everyone accepts transfers now, even people that sell in traffic,” said Temiloluwa Lawal, a tech expert.

“Even Keke drivers are accepting transfers,” Daniel Ishie, a mobile money agent, added.

Although, PoS transactions, had been a leading force when the Central Bank of Nigeria (CBN) introduced its Naira redesign policy and withdrawal limits in 2022. Yet, there was an 8.19 percent decline to N6.23 trillion over the same period.

However, as of July 2024, there is an 802.93 percent to 4.06 million increase in the number of registered PoS terminals from 449,998 in January 2020.

According to the 2024 Nigerian Payments Report, “POS transactions play a pivotal role in providing enhanced convenience, speed, and security, contributing to the ongoing transformative shift towards heightened adoption of cashless transactions in Nigeria.”

“It is evident that the tremendous growth of Mobile App Transfers, Online Transfers, MMOs, and the NIP together paint a clear picture that Nigeria’s payment system is becoming much more cashless and much more dependent,” Zone remarked.

The United Bank of Africa (UBA) has solidified its position as a leading financial institution, not just in Nigeria, but across the African continent and beyond.

With its tagline “One Brand, Global Influence,” the financial institution has continued to demonstrate a commitment to providing innovative financial solutions to individuals and businesses alike.

For 75 years, the Pan-African bank has transformed from a mustard seed to a thriving global powerhouse, creating a strong footprint in 24 Global locations while igniting success.

With a presence in 20 African countries and four global centres: London, New York, Paris, and Dubai, UBA has established itself as a truly global financial institution. Its expansive network ensures that it can meet the needs of its customers wherever they are, delivering world-class banking services with a local touch.

Connecting Businesses in Africa

UBA is connecting people and businesses across Africa through retail, commercial, and corporate banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services. The bank recognises the significance of micro, small and medium-scale enterprises (MSMEs) to the development of the African economy. Hence, it entered a $6 billion agreement with the African Continental Free Trade Agreement (AfCFTA) to show our commitment to the development of the MSMEs’ sector across the continent. Under this agreement, the bank provides businesses with the technical and financial solutions needed to succeed.

With this agreement, the bank promotes the development of MSMEs operating in four sectors under the first phase of the partnership which are largely import-dependent by providing technical and financing solutions for intra-African/domestic alternatives. These economic sectors are Agro-processing, Automotive, pharmaceuticals, Transport and Logistics.

One of the key initiatives of the AfCFTA is to improve access to finance and markets for MSMEs to encourage their growth and contribution to the socio-economic development of Africa.

UBA’s Group Managing Director, Oliver Alawuba, pointed out that the bank is focused on how to partner to move Africa forward particularly as it concerns MSMEs and women empowerment.

“We believe that African women can be more empowered to do more for African development and UBA is in the forefront of these initiatives. African trade is our key area of strength. Our presence in 20 African countries is mainly to drive inter-African trade.

“Our partnership with AfCFTA is also to drive inter-African trade. Inter-African trade is important. Africa needs to trade more with each other and that will further improve economic development across the continent

“I believe that this is the time for UBA, working with other corporate organisations and partners to develop the resources and opportunities that are available in the continent. We are today present in 20 African countries and four other countries outside Africa. Yes, Africa has tremendous opportunities. What we are saying is that we need to have partners, and institutions that will be able to harness these opportunities for the people.  UBA is well-positioned to facilitate business within Africa and the rest of the world. That is why we are here in this conference,” he added.

Deputy Managing Director of UBA, Muyiwa Akinyemi, who signed the agreement on behalf of the bank, noted that being Africa’s global bank, UBA remains committed to supporting the growth/development of SMEs across Africa. This is in line with our strategic focus on the SME segment being a catalyst to the economic development of Africa.

Muyiwa further said, “ Under this partnership, UBA will go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries that we are present and build sustainable business practices. We shall also be leveraging technology to deliver our financing activities to the beneficiaries and this platform provides us with a unique opportunity to stimulate the development of the continent as Africa’s Global Bank.”

Also, UBA’s presence across four regions enables it to bring global expertise to local markets, driving economic growth and development. UBA’s business strategy is built on being the bank of choice for businesses across the African continent.

Using its extensive spread across the continent, it facilitates trade and also acts as the pivot for the inflow of investment capital. UBA provides corporate, commercial, SME, consumer, and personal (retail) banking services to more than 45 million customers, served through diverse channels: over 1,000 business offices and customer touch points with 2,669 ATMs, 87,223 PoS, and robust online banking services. Additionally, UBA offers pension custody and related services.

The bank has proven expertise and capacity in key sectors of economies across Africa, especially in oil and gas, infrastructure finance, agric, and commodity/export, and this positions the bank as a preferred partner for structured solutions to key governments and corporates operating in/into Africa. The Pan-African bank focuses on supporting people and businesses to succeed across Africa, Europe, Asia, and North America. Through its diverse range of financial products and services, it helps people fulfil their goals and enable businesses to prosper.

For UBA, serving customers is not just about profit as it strives to be with its customers every step of the way in their journey. Its overall strategic goal in its approach to business is defined by its strong desire to be the bank of choice for individuals and businesses across Africa and globally.

Global Brand, Digital Expansion

The UBA brand is built on the foundation of three core values that guide everything we do; Enterprise, Excellence, and Execution. It fosters a culture of innovation and excellence, driving growth through strategic initiatives and exceptional service. By transforming ideas into actionable solutions, UBA consistently delivers high-quality results on time, setting the highest standards across all our endeavors.

Additionally, UBA’s extensive network of branches and ATMs across Africa has been instrumental in driving financial inclusion. By expanding its reach to underserved communities, the bank has empowered individuals and businesses to participate in the formal economy. This strategic expansion has also facilitated cross-border trade and investment, fostering economic growth and development.

UBA has been at the forefront of technological advancements in the banking industry. The bank’s digital platforms, including mobile banking and online banking, have made it easier for customers to access their accounts and conduct transactions. Additionally, UBA has introduced innovative products and services tailored to meet the specific needs of different customer segments.

Corporate Social Responsibility

Beyond its core business, UBA has demonstrated a strong commitment to corporate social responsibility. The bank has undertaken various initiatives to support education, healthcare, and community development. By investing in the well-being of the communities it serves, UBA has reinforced its reputation as a responsible and ethical institution.

Financial Performance

UBA has been experiencing a significant surge in its share price, primarily driven by the positive financial results it has consistently delivered. UBA shares closed on Thursday, September 19, 2024, at N24.65 per share, compared with the N16.80 per share it was as of September 20, 2023.  Africa’s global bank is no doubt a growth and value stock combined making it the best bank to own for investors which would provide the necessary upside (Value) as well as the earnings (Growth) that would continue to underpin its stock price rise.

UBA’s growth has been accelerating in recent years as the vision of a pan-Africa lender begins to increasingly crystalise. This is driven largely by its financial performance which has continued to beat analysts’ expectations.

For instance, its audited financial results for the full year ended December 31, 2023, showed exceptional and impressive performance across all its major indicators.  The bank recorded an impressive leap in gross earnings, as it grew from N853.2 billion recorded at the end of 2022 to close at N2.08 trillion; representing a strong 143 percent growth. The bank’s total assets also rose remarkably by 90.22 percent, doubling the N10 trillion mark to close at N20.65 trillion in December 2023; up from N10.86 trillion in 2022. This leap was a significant achievement and milestone in the history of the financial powerhouse.

Despite the highly challenging global economic and business environment, UBA in 2023, recorded a laudable profit before tax, with an exponential growth of 277 percent, to close the year under review at N758 billion, rising from N201 billion recorded at the end of the 2022 financial year; while profit after tax (PAT) grew by 257 percent from N170 billion in 2022, to N608 billion in the year under consideration.

Consequently, UBA Group Shareholders’ Funds rose from N922 billion as of December 2022 to close the 2023 financial year at N2.0tn, achieving an impressive growth of 120.2 percent compared to the prior year. Also, in the year under consideration, UBA Group’s cost-to-income ratio dropped from 59.2 percent in 2022, to 37.2 percent pointing to the Group’s improving efficiency.

In fulfillment of its promise to shareholders at its last Annual General Meeting, the bank offered a final dividend of N2.30 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2023. Also worthy of note, UBA in the review year, recorded a 61.3 percent growth in loans to customers, moving up to N5.5 trillion in 2023, whilst customer deposits improved by 90.31 percent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

The positive trend continued in the first quarter (Q1) of 2024. The UBA Group’s results as of March 31, 2024, showed outstanding year-on-year increases: Gross Earnings rose by 110 percent, from N271.1 billion to N570.2 billion; Interest Income grew by 130 percent, to N440.7 billion.  Operating Income increased by 115 percent, from N175.7 billion in 2023 to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 full-year audited financials, UBA again saw profit before tax rising significantly by 155 percent from N61.7 billion in Q1 2023 to N156.34 billion in Q1 2024; while profit after tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165 percent year-on-year.

The bank’s impressive performance has attracted increased investor interest, boosting demand for its shares. These positive results showcase UBA’s strong financial health, robust growth prospects, and effective management strategies.

Key factors contributing to the stock price appreciation include the bank’s consistent increase in revenue and profitability, coupled with its expansion into new markets.

Group Chairman, UBA, Mr. Tony Elumelu, appealed to shareholders to participate fully and re-invest their dividends in the bank’s recapitalisation drive which is set to commence in the coming days, saying this would ensure that they continue to enjoy even higher returns from their investments.

He said, “I call on you shareholders to re-invest a substantial part of your dividends in our rights issues which will be announced soon, as we will be giving you the first opportunity to own a share in all the countries where we operate, I am advising shareholders, as you get your dividends, reinvest a significant part of it. As for my board members and I, we would be investing 100% of the dividends we get, because If we don’t do so, it means we would be leaving food on the table for others who did not labour for it,” Elumelu stated.

As the bank continues to deliver positive results and execute its strategic plans, it is expected to maintain its upward momentum and attract further investor interest. In conclusion, UBA has no doubt emerged as a powerful force in the global banking landscape. With its strong Pan-African footprint, innovative financial solutions, and commitment to corporate social responsibility, UBA is well-positioned to continue its growth and success in the years to come.

Access Holdings Plc, one of the leading financial companies in Nigeria, grew gross earnings by 133.5% from N940.311 billion in the first half (H1) of 2023 to N2.196 trillion in H1 2024, according to the lender’s latest financial statement.

In the financial statement obtained by Investors King, Access Holdings Plc realized N1.288 trillion in interest income calculated using an effective interest rate, a 116% increase from N596.136 billion recorded in the corresponding period of 2023.

Interest income on financial assets at FVTPL jumped 1620.5% from N10.701 billion in H1 2023 to N184.106 billion in H1 2024.

The lender paid N958.732 billion in interest expense during the period under review, a 150.6% increase from N382.598 billion paid in H1 2023.

Access Holding grew profit before income tax by 108% to N347.922 billion from N167.601 billion filed in H1 2023. A total of N67.595 million was paid in income tax while profit from continuing operations rose to N281.327 billion, up by 107.7% from N135.441 billion achieved in the same period of 2023.

The lender reported other comprehensive income of N401.118 billion and a total comprehensive income of N682.446 billion.

Total equity inched slightly higher to N2.837 trillion.

On Outlook For The Rest of The Year.

The financial organisation said “Access Holdings remains confident in its ability to surpass the growth momentum achieved in the first half of the year as we look ahead to the second half. Our strategic priorities will remain focused on scaling non-banking segments, expanding our digital footprint, and solidifying our presence in high-growth African and international markets. These are geared towards accelerating revenue diversification and ensuring long-term sustainable value creation for our shareholders.

“Furthermore, we are fast-tracking the completion of our technology infrastructure integration and upgrades, which will significantly enhance operational efficiency across the group. This technology transformation will strengthen our digital capabilities, allowing us to deliver superior services to our customers, drive operational synergies, and optimise cost.

“Our strategic focus on non-banking segments, digital expansion, and geographic diversification will continue to create lasting value for shareholders, positioning the group to capitalise on emerging opportunities and sustain growth in the long term.

“We recently concluded our rights issue of N351 billion, and we are awaiting the Central Bank of Nigeria (CBN) capital verification and the Securities and Exchange Commission (SEC) approval for the allotment of rights. We will keep our investors and shareholders informed as we proceed with the exercise.”