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UBA shows resilience as Gross Earnings, profit hit N375bn, N79bn

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United Bank for Africa Plc, has announced its unaudited 2018 third quarter financial results, with impressive growth in Gross Earnings, which berthed at N374.8 billion, an 12.3 percent increase when compared to N333.9 billion recorded in the corresponding period of 2017. According to the report filed to the Nigerian Stock Exchange (NSE) yesterday, UBA’s net operating improved 1.7 percent year-on-year to N227.7 billion, when compared to N224 billion achieved in the similar period of 2017.

Amidst inflationary pressures and uncertainties undermining the business environment in Nigeria and a few other countries in Africa, UBA’s operating expenses increased by 2.3 percent to N149.1 billion, compared to N145 billion recorded in the same period of last year. Overall, the Bank posted a Profit Before Tax of N79.1 billion whilst Profit After Tax stood at N61.7 billion. This profit performance puts the Bank’s annualized return on average equity at 16 and 20 per cents at pre-tax and post-tax profit level respectively.

The bank’s Total Assets stood at N4.51 trillion, a 10.8 per cent year-to-date rise over the N4.07 trillion total asset recorded as at December 2017, while customers’ deposit was up by 16.2 percent year-to-date growth growing to N3.18trillion, compared to N2.73 trillion as at December 2017. The shareholders’ fund remained strong at N509.3 billion, even as the implementation of International Financial Reporting Standard (IFRS) 9, moderated the Group’s equity by 3.8 per cent year-to-date.

Commenting on the result, the Group Managing Director and Chief Executive of UBA Plc, Kennedy Uzoka, said “We achieved a number of strategic imperatives during the quarter and committed more investments in the future of the business – building a solid foundation for sustainable and superior return to our shareholders”
Uzoka said he is pleased that the Bank’s Virtual Banking Chatbot, Leo, which debuted on Facebook earlier in the year, was successfully launched on WhatsApp during the quarter. “This new channel offering, which enables our customers to fulfil their banking transactions through simple chat commands, is another premier initiative in our suite. The early pay-offs are quite compelling – recent customer acquisitions and broader transaction volume growth are exciting leading indicators that reinforce our confidence in these novel channels.

“Our franchise is increasingly renowned for financial solution and I am happy with the consistent growth in our businesses across the continent. We have grown balance sheet by 11 per cent year-to-date to over N4.5 trillion. Notwithstanding the statutory-induced cost growth, our earnings proved resilient, as we recorded nine-month profit before tax of N79 billion. Notwithstanding the macro-risk arising from upcoming elections in Nigeria, our single largest market, we are confident of finishing the year strong,” Uzoka stated.

Also speaking on UBA’s financial performance and position, the Group Chief Financial Officer, Ugo Nwaghodoh said that despite the relative volatility in the third quarter of 2018, especially in the face of U.S. interest rate hikes and concerns over global trade war, which has disrupted the interest and exchange rate environment in many African countries, the bank remains on track to deliver its earnings target for the year.

He said “We remain committed to our five-year plan of working down CIR to 50 per cent, which we consider to be a normalised medium-term CIR. Overall, we closed the third quarter with a post-tax RoAE of 16 per cent and the Group remains well capitalized and liquid, as reflected in the Group’s capital adequacy of 21 per cent and Bank’s liquidity ratio of 53 per cent.

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BUSINESS

Keystone Bank promotes climate action, sustainability through Principles for Responsible Banking

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Keystone Bank Limited has become one of the founding signatories of the Principles for Responsible Banking, committing to strategically align its business with the Sustainable Development Goals and the Paris Agreement on Climate Change.

By signing the Principles for Responsible Banking, Keystone Bank joins a coalition of 130 banks worldwide, representing over USD 47 trillion in assets, in committing to taking on a crucial role in helping to achieve a sustainable future.

Taking place at the start of the UN General Assembly, the official launch of the Principles for Responsible Banking marked the beginning of the most significant partnership to date between the global banking industry and the UN.

“The UN Principles for Responsible Banking are a guide for the global banking industry to respond to, drive and benefit from a sustainable development economy.  The Principles create the accountability that can realize responsibility, and the ambition that can drive action,” said UN secretary-general Antonio Guterres at the launch event, attended by the 130 founding signatories and over 45 of their CEOs.

Also speaking, Inger Andersen, executive director of the United Nations Environment Programme (UNEP) explained that a banking industry that plans for the risks associated with climate change and other environmental challenges cannot only drive the transition to low-carbon and climate-resilient economies, it can benefit from it.

“When the financial system shifts its capital away from resource-hungry, brown investments to those that back nature as solution, everybody wins in the long-term,” Anderson noted.

Commenting on the development, executive director, Keystone Bank Limited, Yemi Odusanya said Keystone Bank is convinced that only in an inclusive society founded on human dignity, equality and the sustainable use of natural resources can our clients, customers and businesses thrive.

According to Odusanya, “By signing up to the Principles, we commit to “using our products, services and relationships to support and accelerate the fundamental changes in our economies and lifestyles necessary to achieve shared prosperity for both current and future generations.

“The Principles for Responsible Banking are supported by a strong implementation and accountability framework. By signing them, Keystone Bank commits to being transparent on both our positive and negative impact on people and planet. Keystone Bank will focus where it has the greatest impact – in its core business – and set, publish and implement ambitious targets to scale up positive and address any negative impacts in line with global and local goals.

“Keystone Bank believes that business can and should be an effective steward of our planet as well as a force for good in society at the same time a generator of wealth for shareholders and stakeholders. We recognize that the success of our business, and the sustainability and survival of our planet are tightly aligned with the Principles for Responsible Banking. As industry leaders we are committed to implementing the Principles for Responsible Banking in our business and practices and to being an effective ambassador for these principles with others in our industry and beyond,” He concluded.

 

About the Principles for Responsible Banking

The Principles for Responsible Banking were developed by a core group of 30 Founding Banks through an innovative global partnership between banks and the UNEP Finance Initiative (UNEP FI). UNEP FI is the UN-private sector collaboration that includes membership of more than 250 finance institutions around the globe.

Please see the Principles for Responsible Banking and their Framework Documents, visit: https://www.unepfi.org/banking/bankingprinciples/

For a complete list of all banks that have become the Founding Signatories of the Principles for Responsible Banking today and quotes from their CEOs please, visit: https://www.unepfi.org/signatory-statements/

For more information, including infographics and videos, please visit: https://www.unepfi.org/banking/bankingprinciples/

To see the official UN press release on the Official Signing and Global Launch of the Principles for Responsible Banking, please, visit: http://www.unepfi.org/news/industries/banking/130-banks-holding-usd-47-trillion-in-assets-commit-to-climate-action-and-sustainability/

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Keystone Bank rewards its Verve card holders with free petrol

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Fastest growing financial services provider, Keystone Bank Limited in partnership with Verve International, has launched a promotion to reward its customers for using its Verve Card to purchase petrol at select Oando Petrol stations across Nigeria.

According to a statement by the lender on Friday, the promo tagged “Free Fuel Alert” which is open to both new and existing customers of the bank will have Keystone Bank Verve Card holders receive free extra 5 litres of petrol each time they use their verve cards to purchase a minimum of N3,000.00 and above worth of petrol between 6am – 8pm every Friday from September 20 till November 8, 2019.

The selected Oando Petrol Stations where the promo will run are Lagos (Maryland, Marina, Awolowo Falomo, Awolowo Fire Station, Lawanson, Alapere, Ajah, Agege Bye-Pass, Trade Fair, Fola Agoro, Ojodu Berger, Sangotedo, Ago Palace Way and Shiro Road Fadeyi) Abuja (Garki, Ahmadu Bello Way and Zone 6 Wuse) Enugu (Ogui Road), Imo (Assumpta Avenue) Kaduna (Junction Road by Stadium), Kano (Club Road 1), Oyo (Orita Mef and Iwo Road, Southbound) Portharcourt (Aba Road and 75 Transamadi) Delta (Effurun Junction) Edo, Benin – City (Akpakpava Road).

While Keystone Bank Limited is a technology and service-driven commercial bank offering convenient and reliable solutions to its customers, Verve Card International is a secure debit card which allows the card-holder to conveniently meet day to day financial needs like the payment for goods and services, airtime recharge, bill payments, funds transfer amongst others.

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Awoof Berekete: Access Bank launches campaign to promote electronic services

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Leading Nigerian retail bank, Access Bank Plc, has launched a campaign to promote its Access Mobile Wallet service.

Tagged Awoof Berekete, it is a savings reward scheme, which runs from August to November 2019.

During the period of the campaign, customers who use their Access Mobile Wallet to make transactions will be rewarded handsomely.

Customers can get 20% cash back up to N1,000.00 when they purchase airtime via Access Money Wallet as well as receive 10 times their initial deposit (up to N10,000) when they fund their Access Money Wallet and save for 7 days.

Head, Business Development and Planning at Access Bank, Chinedu Onuoha, said: “We are the largest bank in terms of customer base. Cumulatively, we have about 30 to 31million customers. By 2022, we intend that this should be a minimum of 65million customers and to achieve this, we came up with Awoof Berekete, which is another way to reward our customers.”

“Awoof berekete intends to encourage those whose accounts have been dormant or inactive due to various reasons – insufficient documentation, BVN etc. Customers will get 20% cash back up to N1,000.00 when they purchase airtime on their Access Money Wallet as well as receive 10 times their initial deposit (up to N10,000) when they fund their Access Money Wallet and save for 7 days.

Further, he stated that: “What we are essentially doing incentivizing them (customers) to be more productive.

Sometimes you pay N200 as transport fare to go and pay somebody N2,000. What we are saying is that you can stay in the comfort of your home and do that transfer; also that market woman on her way home can drop the vegetables for you. Those kinds of things can happen and help people promote efficiency and also make them live better lives.”

The Access Mobile Wallet is an electronic wallet service which allows users to save, transfer, and receive money. It provides access to a wide range of financial services offered by Access Bank and access to all the Bank’s branches and agents nationwide.

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