Fitchratings has affirmed United Bank for Africa, Ghana, Ltd strong rating of Long-Term Issuer Default Rating (IDR) at “B-” with a stable outlook and Viability Rating (VR) also affirmed at “CCC”.
This was after the agency carried out thorough examination of the bank in September this year.
The affirmation of UBA Ghana’s rating is based on a strong capital buffer and healthy liquidity.
Fitch, in its report, said despite the negative impact of the first phase of Domestic Debt Restructure (DDE) and the potential risk of growth in non-performing loans, UBA Ghana remained adequately capitalised to withstand any turmoil within the banking terrain.
Fitch’s analysis of UBA Ghana further indicated that despite the bank’s exposure to the ongoing debt restructuring of Cocoa bills and the Government of Ghana Eurobonds, the bank’s capital and liquidity would be able to withstand the impacts of these government debt restructures.
Fitch affirmed UBA Ghana’s Shareholders Support Rating at “B”, revealing that although the sovereign default remains high, the bank remains attractive and its contribution to the Ghanaian market aligns with UBA’s Pan-African agenda.
UBA Ghana Ltd posted strong financials in H1 2023 with an improved liquidity ratio of 85.65 per cent and a Capital Adequacy ratio of 19.46 per cent.
The bank’s deposit, as at H1 2023, grew by 20.85 per cent to close at G¢5.17bn against the prior year of GH¢4.28bn.
This growth funded Total Asset growth of 21.41 per cent which was from GH¢5.63bn in H1 2022 to GH¢6.84bn in H1 2023.
The bank posted 156% Year-on-Year growth in profit before tax from GH¢116m in H1 2022 to GH¢296m in H1 2023. This improvement is a result of efficiency and enhanced customer service.
The bank has led in many innovations in the industry. At the peak of the COVID pandemic, it introduced LEO, Ghana’s first virtual banker on WhatsApp, Facebook, and iMessage and soon to be deployed on two other channels subject to regulatory approval.
