MD says bank is poised to witness boost in profitability
The Managing Director of UBA Plc, Philips Oduoza, has said the bank will witness a boost in profitability, based on performance of its African subsidiaries.
At the bank’s 50th Annual General Meeting held in Lagos, Oduoza said the bank’s 18 African subsidiaries would contribute up to 50% of the bank’s earnings in the near future.
“Our African expansion programme has been completed. The programme enabled us to reinforce our businesses in each of our operating countries in order to deepen our penetration, achieve positive contribution to the Group’s profitability and deliver commensurate returns on invested capital,” he said.
“With the expansion, we have diversified our operations and spread our risks beyond Nigeria, which is majorly a mono-product economy for now.”
Oduoza added that at the executive management retreat held to map out a five-year strategy, the “bank maintained that it would continue to pursue its three-tier strategic intent of being the dominant and clear leader in the financial services industry in Nigeria; being a leading African Bank(shift from expansion to business consolidation phase); and establishing a global presence.”
The Chairman of the UBA Board, Israel Ogbue, briefing shareholders on the restructuring exercise of the bank, said all the bank’s non-bank subsidiaries would be consolidated under UBA Capital.
He explained that new CBN guidelines made it compulsory for UBA’s offshore and onshore bank subsidiaries to fall under the main commercial banking arm of the group.
“Consequently UBA Plc will become the parent bank holding company of all its commercial banking activities in Nigeria, Africa and the rest of the world and will also be the parent company for UBA Pension Custodian Limited and UBA FX Mart Limited.”
Sly is a social commentator who resides in Lagos and currently works as a relationship manager for a financial institution.
