Celebrating decades of shared growth and lifting others

UBA Tanzania Limited Managing Director Gbenga Makinde.

What you need to know:

  • United Bank for Africa (UBA) is one of Nigeria’s oldest banks and the first to list on the NGX in 1978. It is also the first Nigerian lender to install an ATM, open up a subsidiary in Africa and to have a female chairperson in Nigeria.

Dar es Salaam. United Bank for Africa (UBA)’s numbers are louder than the hysterics of the 75th jubilation itself, if you were attentive to the Group Managing Director, Oliver Alawuba when addressing the press at the apex of the bank’s historical milestone in Nigeria.

Despite businesses across the world reaping the whirlwinds of the climate crisis, inflated oil prices, Covid-19 disruptions and Ukraine-Russia conflict, according to Mr Alawabu, the global lender’s share price is projected to possibly hit N100 mark in the near future.

“UBA operates across 24 countries with opportunities to connect Africa to the world. The market is repricing UBA with significant market value growth over the past year. Cross border diversification is good for earnings growth in spite of one-time FX windfall,” Alawuba said.

The UBA currently trades at N21 and a price to book value 0.28 times. This means a valuation closer to book value will see the shares trading closer to N80 and probably hit the 100 threshold.

The giant financier posted a profit after tax of N607.696 billion in 2023, which represents a 257% surge from N170.277 billion in 2022. The remarkable gross earnings record positions it as one of the top-tier performing banks in the year 2023.

UBA Chief Financial Officer, Ugochukwu Nwagodoh ascribed the share price appreciation to the diversified income avenues from its subsidiaries outside Nigeria, UBA Tanzania included. The bank is positioned as the payment bank for capital flows between Africa and the rest of the world.

From left to right: UBA Africa Secretary, Mr Bili Odum, Executive Director/GCOO, Mr Alex Alozie, Group Head, Marketing and Corporate Communication, Ms Alero Ladipo, Group Managing Director/CEO, Mr Oliver Alawuba, Group Deputy Managing Director, Mr Muyiwa Akinyemi and Executive Director, Mr Ugo Nwaghodoh in a group photo at the Global Press Conference to herald the year-long celebration of UBA at 75, in Lagos on Monday.

United Bank for Africa (UBA) is one of Nigeria’s oldest banks and the first to list on the NGX in 1978. It is also the first Nigerian lender to install an ATM, open up a subsidiary in Africa and to have a female chairperson in Nigeria.

Its solid attachment to supporting SMEs across the region and embracing innovation and technology are a testament to its unending commitment to continue creating values for its shareholders.

“As we embark on the next phase of our journey we urge all stakeholders to ride with us and write the next chapter of success with us,” he stated and concluded.

 

UBA Tanzania marks its 15th anniversary

In Tanzania, a closer proximity, glasses clinked to share a toast of an epic glory for 15 years of the subsidiary’s exalted financial performance in a similar fashion to that of the group.

UBA Tanzania Limited Managing Director Gbenga Makinde says both anniversaries reflect on the transformation of the bank from colonial regime to the financial inclusion era, lifting up its brand by facilitating trade within Africa and the rest of the world.

Particularly in Tanzania, the bank started 2009 while playing a key role in pushing for the country’s economic growth and infrastructural development.

According to Mr Makinde, the bank is a trusted partner in an ongoing Julius Nyerere Hydropower Project (JNHPP), a landmark power output project across East Africa.

“We have also partnered with several companies from the extractive docket for mutual businesses,” the MD elucidated further.

From left to right: Executive Director/GCOO, Mr Alex Alozie, Group Head, Marketing and Corporate Communication, Ms Alero Ladipo, Group Managing Director/CEO, Mr Oliver Alawuba, Group Deputy Managing Director, Muyiwa Akinyemi and Executive Director, Mr Ugo Nwaghodoh in a group photo at the Global Press Conference to herald the year-long celebration of UBA at 75, in Lagos on Monday.

In an effort to empower SMEs, around 30 million USD have been channeled to Tanzania for supporting such a target group in 2024 out of 6 billion USD earmarked to lend a helping hand to SMEs and startups across the region.

“This is an example of how to lift Africans from poverty to the advanced landscape of banking in Tanzania and across Africa,” he added.

Asked about the market penetration experience over the 15 years of the service, the Bank’s CEO states that it has been always about showing resilience and strong resolve to make progress.

“There’s no single market that is easy to penetrate but it is more of what value propositions are taking to those markets. We understand that this is a competitive market but we are a global bank that houses a great deal of experience and exposure of entering new markets and operating smoothly,” he noted.

According to him, Tanzania’s banking climate is replete with untapped growth potentials spanning from the population growth figure of 60 million people to economic growth of 5.1 percent, sound and stable investment policies to the surged use of the internet, smartphones and technologies. All these provide an appetite for strategic investment in the key economic drivers.

The bank continues to make a valuable impact to the lives of others by extending its reach to the mostly unbanked communities. The lender has eight branches operating in Mwanza, Arusha and Dar es Salaam.