UBA explains how Bank announces growth in profit amid

• UBA GMD has clarified how, in spite of Nigeria's foreign exchange problems, it is able to record outstanding profits
• The bank reported N603 billion profit before tax for nine months against the reporting in the period year
• According to him, UBA is the only African-based bank operating in the United States of America

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Group Managing Director, United Bank for Africa has explained how it is able to report impressive profits despite foreign exchange issues in Nigeria.

UBA recently declared an impressive N603 billion profit before tax for Nine months. Photo Credit: UBA
Source: UGC

Oliver Alawuba, said this in an interview on the sidelines of the just concluded World Bank/International Monetary Fund annual meetings in Washington DC, United States, Daily Trust reported.

This occurred as the bank recently declared an impressive N603 billion profit before tax for nine months compared to the same period of the previous year.

He said,

“Because of the fact that we are present in many countries, we have access to foreign exchange. Things don’t get bad in all the countries at the same time. We have a very diversified portfolio. So, we are able to optimise the sources of efforts across all those countries.“So, we stay on board; we stay moving because we have access to foreign exchanges across several countries where we are present, and we’re optimising them more efficiently.”

Speaking on the operation of the bank in the USA, he stated that UBA is the only bank originating from Africa that is present in the United States of America, regulated with a national banking licence, regulated by the Office of the Comptroller of the Currency (OCC).

“Today, UBA America is 40 years old. UBA America is a settlement bank for so many banks out of Africa, and this is what has been very difficult for banks out of Africa to have; settlement banks in our correspondent banks in America.”

On recapitalization

Regarding the recapitalisation of the banking sector, he said that UBA will raise the capital.

“Our applications are at the Securities and Exchange Commission for approval, and I believe they will look at it. In a few weeks, UBA will start. And UBA is positioned quite strongly to meet that recapitalisation mandate.”

UBA announces 40% growth in gross earnings

Legit.ng reported that for the first half (H1) of 2024, the United Bank for Africa (UBA) reports a 39.6% increase in gross earnings.

UBA stated that its gross earnings climbed from N981.77 billion in 2023 to N1.37 trillion by June 2024 in a statement released on Monday, discussing its audited financial performance for the half year ended June 30, 2024.

The bank claimed this accomplishment. despite Nigeria's challenging macroeconomic conditions and the geopolitical environment in which it works.

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Source: Legit.ng