The Chief Financial Controller of the United Bank for Africa (UBA) Plc, Ugochukwu Nwaghodoh had said the bank expects its operations in 18 other African countries to take care of half of its earnings over the next three years,
Meanwhile in a report filed by Bloomberg more than $100 million was invested into various units including the Democratic Republic of Congo, Benin, Ivory Coast, Tanzania and Mozambique to help them expand. The investment is expected to start impacting on the company’s income from this year.
Being third-largest financial institution lender by revenue, the bank raised $500 million selling Eurobonds in 2017, proceed of which was used in funding its expansion as the economy of Africa’s biggest oil producer recovered from a 2016 contraction after a slump in crude prices triggered a foreign-currency shortage.
Nwaghodoh said; we are targeting an improvement in the bank’s return on equity, to the tune of 18 percent this year above the 16 percent achieved in 2017. According to him, UBA will “defend” its net interest margin in Nigeria amid declining interest rates by reducing what it pays depositors for their savings,.
He continued by saying “The loan-to-deposit ratio today is 60 percent, so I have a lot of liquidity, and can dictate the price at which to take deposits,”
In Ghana, UBA planned to boost its operations and increase the capital beyond the minimum 400 million cedis ($90 million) in line with the regulator’s requirement. This will bolster the buffers by capitalizing earnings, in which it transfers surplus income to its capital holdings, within the unit for 2017 and mid-year 2018, he said.