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UBA Records N7.6bn Profit In 2021 First-Half Results

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The United Bank for Africa (UBA) Plc has reported a profit before tax of N76.2 billion in the first half of the year.

This represents a 33.4 percent appreciation compared to the N57.1bn recorded in the same period of 2020.

The profit was the highest in the first half of the year, according to the bank’s result filed with the Nigerian Exchange.

The result also showed the bank’s gross earnings grew 5.0 percent to N316billion from N300.6billion, while total assets rose to N8.3 trillion from N7.7trillion.

Customer Deposits also crossed the N6trillion mark growing by 7.4 percent to N6.1trillion in the period under consideration, compared to N5.7 trillion as at December 2020.

The Group’s Shareholders’ Funds remained robust at N752.5billionn up from N724.1billion in December 2020, reflecting its strong capacity for internal capital generation.

In line with the bank’s culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc has declared an interim dividend of 20kobo per share for every ordinary share of 50kobo each, held by its shareholders.

Reacting to the result, UBA’s Group Managing Director/Chief Executive Officer, Mr. Kennedy Uzoka, expressed delight over the bank’s performance, adding, “This has been a strong first half for us, as global economic recovery exceeded expectations, creating a positive rub-off on consumer and corporate confidence, savings and investment activities”.

Continuing, the GMD pointed out that the bank recognises the far-reaching effects of the pandemic on businesses globally.

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Business

Access Bank Launches $500m Senior Unsecured Eurobond

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Nigeria’s largest bank by assets base, Access Bank Plc, has announced successful launch of a $500 million 144A/RegS Senior Unsecured Eurobond – 5-year unsecured note under the Bank’s $1.5billion Global Note programme – as part of its Global Medium-Term Note Programme.

This is contained a notice signed by the company’s secretary, Sunday Ekwochi, and made available on the website of the Nigerian Exchange Limited (NGX).

The transaction, the notice said, recorded a massive interest from top quality investors globally, including the United States, Europe, Middle East, Asia and Africa, anchored by a number of large tickets.

The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed orderbook of over $1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction. The bond which will mature on the 21st of September, 2026, was issued with a yield and coupon of 6.125%, with interest payable semi-annually in arrears. The coupon of 6.125% is another first in the corporate Eurobond issuance space.

The bond is already trading at a premium from issue levels with bids around 5.89% levels whilst offers are around 5.78% as the unmet demand from the auction filtered into the secondary market. (101/101.50 indicative price)

The bank said the net proceeds of the Eurobond will be used to provide medium term funding in a bid to enhance its capacity and support its general banking purposes.

Commenting on the Eurobond Issuance, the Group Managing Director of Access Bank, Dr Herbert Wigwe said: ’’At Access Bank we remain committed to our vision to become the World’s Most Respected African Bank and Africa’s Gateway to the World. The success of our US$500 million Senior Unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors’ confidence in the Access Bank story. We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives.’’

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Desist From Forex Malpractices, CBN Warns commercial Banks

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The Central Bank of Nigeria has warned Deposit Money Banks to always observe due diligence and desist from all forms of malpractices in foreign exchange transactions.

The apex bank gave the warning in a letter by Ozoemena Nnaji, Director of Trade and Exchange Department, addressed to the DMBs.

Nnaji urged the banks to ensure to know their customers and also to know their customers’ businesses.

She said the directive was necessitated by recent occurrences in the FX market.

“The CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).

“Given this responsibility, and in view of recent occurrences in the market, the CBN will like to remind banks to desist from all forms of FX malpractices.

“We wish to reiterate that FX operating licences of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year,” the director said.

She urged all the DMBs concerned to take note and ensure compliance.

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Access Bank Rakes in N29.9bn From E-Business Income

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Nigeria’s largest bank raked in a whopping N29.9 billion from its Channels and E-Business Income in 2020 representing a 37% growth from the same period in 2020. The bank reported a then-record N21.8 billion from its E-Business Income.

The bank’s E-business Income now contributes about 40.5% of Fees and Commission Income compared to 42% same period last year. The bank’s Fees and Commission Income were N73.7 billion in June 2021 compared to June 2020.

Nigerian banks raked in about N216 billion in E-Business Income in 2020 with Access Bank topping the chart with about N56.09 billion up from N36 billion in 2019. The bank is thus growing slower than it did in 2020, however, the numbers are staggering.

Access Bank became the largest bank in the country after it merged with Diamond Bank, a leading tech-focused commercial bank which was a major attraction for Access Bank when deciding the merger. Since the merger, the bank has seen its deposits rise to N7.7 trillion from about N3.5 trillion in 2018, when the merger was first revealed. The revenue base is perhaps the major driver for the growth of its E-Business Income.

Nigeria has been experiencing a massive boost in electronic-driven banking as increasing mobile phones adoption and viral social media lead to massive consumption of data and spending across several channels.

The banking sector is also benefitting massively from the wave of mobile phone adoption proving easy to use banking apps that are secure and operate seemingly like social media apps.

We believe mobile banking adoption will rise to become a significant source of revenue for Nigerian banks especially through data monetization, an aspect of revenue they are yet to leverage on.

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