United Bank for Africa (UBA) Plc grew its loan book by 42 per cent to N937 billion for the year ended December 31, 2013, from N659 billion in 2012. The bank attributed the growth to several big ticket transactions carried out in 2013 especially in the power, oil and gas sectors.
According to the Group Managing Director /Chief Executive Officer of UBA, Phillips Oduoza, the bank in 2013 committed $700 million in funding to the power sector privatisation exercise in Nigeria, financing different investors to acquire the power assets divested by the Federal Government of Nigeria.
Some of the major deals, he said, included $120 million (N19.44 billion) financing of Transcorp Ughelli Power Plant. He added that the bank also acted as Mandated Lead Arranger, underwriting the entire facility of $122 million (N20bn) for Kann Utilities’ acquisition of the Abuja Electricity Distribution Company, financing the payment of 75 per cent acquisition of 60 per cent equity stake in Ikeja Electricity Distribution Company.
“The bank also threw its financial weight behind Aura Energy for the acquisition of Jos Electricity Distribution Company, acting as the lead arranger for N9.6 billion to finance the payment of 75 per cent of Aura’s 60 per cent equity stake in Jos Electricity Distribution Company,” he said.
Uduoza disclosed that UBA also successfully arranged debt financing of $68 million as well as secured equity investment from a strategic and technical investors for the acquisition of the Shiroro Hydroelectric Power Plc by North South Power Company Limited.
Analysts were also impressed with the bank’s lending process as despite the significant in lending portfolio, the bank has been able to reduce the incidence of non-performing loans on its books well below the industry average and regulatory threshold. The bank’s financial results shows that non-performing loans averaged 1.19 per cent in 2013, one of the lowest in the banking industry and well below the regulatory threshold of five per cent.
UBA’s full year results showed gross earnings of N264 billion in 2013 from N220 billion in 2012 while profit stood at N56.06 billion.
Oduoza had said the bank’s customer-focused, corporate banking and treasury led business model drove its success for the year.
He said: “UBA had a good performance for full year 2013. This performance puts us in a position to continue to pursue our goal to achieve industry leadership in the medium term. We were also able to gain considerable strides in our project Alpha initiatives by improving customer service delivery and leveraging our balance sheet to participate in emerging growth sectors of the economy.”