UBA Ghana Limited posts strong financial performance in 2021

UBA Ghana Limited posted strong performance in 2021 financial year in spite of the difficult macroeconomic environment last year.

The bank posted profit before tax of GH¢219 million and became the leading bank in terms of customer deposits.

UBA Ghana grew customer deposits by 46.24 per cent to GH¢4.1 billion in 2021 from GH¢2.8 billion in 2020.

The Managing Director and Chief Executive Officer of UBA Ghana Limited, Chris Ofikulu, who disclosed this when he presented the bank’s annual report and accounts for the 2021 financial year in Accra on Wednesday, said improvement in the bank’s processes through its digital platform and focus on trade and retail drove the growth in profit.

He said the bank’s digital platform contributed hugely to the performance of the bank last year.

Mr Ofikulu indicated that with the digital platform, customers could transact banking services at the comfort of their homes and that helped to attract a lot of deposits.

The MD/CEO said the bank worked hard to reduce Non-Performing Loans from 44.3 per cent in 2020 to 29.4 per cent in 2021.

“What worked for us is just that persistence because we were not going for deposits, because we have the intention to keep our low cost deposit at the highest, so what we do is to ensure that we do transactions that will generate deposits for us,” he stressed.

Mr Ofikulu said assets of the bank also grew to GH¢5.4 billion in 2021 from GH¢3.96 billion in 2020 driven largely by investment in securities and loans and advances to customers.

He, however, said profit before tax for 2021 dropped by two per cent relative to the GH¢224 million recorded in 2020.

Mr Ofikulu indicated that the additional provision the bank made in line with Bank of Ghana’s directive for some loans it granted about a decade ago caused the drop in profit before tax.

Touching on the Africa Continental Free Trade Area initiative, he said his outfit was one of the pilot banks being used for the programme because of strong digital system and the bank would rely on that to support the initiative and businesses.

The Chairman of Board of Directors of UBA Ghana Limited, KwekuAndohAwotwi, in his address said UBA Ghana Limited “Exercised financial prudence and stayed the course in executing our action plan to deliver sustainable, profitable and socially beneficially outcomes.”

Mr Awotwi stressed emphasised that “During the year, the bank’s financial performance remained positive, and our focus remained on becoming a systematically important bank in Ghana in line with our vision.”

The Chairman of the Board of Directors said the bank would continue to work hard to create value for shareholders.

However, in spite of the strong performance UBA Ghana Limited posted last year, the bank did not pay dividend to shareholders.

Mr Awotwi explained the decision not to pay dividend was in line with Bank of Ghan’sa directive and in future the Board in coming years would recommend for the payment of dividend.

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