2010 Annual Report and Financial Statements - UBA Plc

United Bank for Africa PlcRisk Management Report cont’dBehavioural Maturity Profile (N'million)GROUP 1 - 3 3 - 6 6- 12 Total0 - 30 Days Months Months Months Over 1 yearASSETSCash and balances with Central banks 68,056 68,056Treasury bill 47,455 9,750 39,500 26,750 – 123,455Due from other bank 287,569 13,320 937 446 302,272Loans and advances to customers 148,700 194,980 53,788 37,504 193,840 628,811Investment Securities 198,945 2,000 1,850 3,978 177,680 384,453Investment in associates 9,179 9,179Investment in joint venture 939 939Goodwill 3,479 3,479Deferred tax assets 3,341 3,341Other assets 10,464 3,921 2,785 1,606 9,736 28,511Property and equipment 65,200 65,200761,189 223,970 98,859 70,283 463,394 1,617,696LIABILITIESCustomer deposits 311,385 212,672 71,164 161,891 510,059 1,267,171Due to other banks 5,063 2,393 7,456Liabilities on investment contracts 33,090 33,090Other borrowings 82,144 82,144Current income tax 2,794 2,794Other liabilities 33,761 7,433 1,297 371 737 43,599Deferred income tax liabilities 30 30Retirement benefit obligations 1,986 1,986Capital and reserves 179,426 179,426350,209 222,498 75,255 162,262 807,472 1,617,696NET LIQUIDITY GAP AS AT 31DECEMBER 2010 410,980 1,472 23,603 (91,979) (344,077)Operational RiskProcess mapping and risk identification in subsidiaries and strategic services groups continued during the period with further progressin loss events tracking and reporting achieved. The successful deployment of the risk Oprisk management framework across a numberof our Africa operations was achieved.A key initiative for the year was the review and deployment of the Group Oprisk Policy and consolidation co-ordination of the lossesand loss-events reported by all local and foreign subsidiaries into a central loss database. In addition, BCP was developed andimplemented for all key operations. Development and implementation of business continuity planning BCP process for all keyoperations.IT RiskIT Risk Management continuously evaluates IT risks inherent in the Group’s operations; UBA acquired Actimize, a sophisticatedenterprise software solution for anti-money laundering (AML), brokerage compliance and fraud prevention. Built on a patented,scalable and extensible analytics platform, Actimize solutions enable financial institutions to increase their insight into real-timecustomer behaviour and improve risk and compliance performance.The AML component of the application consisting of Watch List Filtering and Suspicious Activity Monitoring modules has since beendeployed to production. The above, coupled with the Enterprise Fraud Prevention modules (ATM & Debit Card, Electronic paymentand Employee fraud), which is currently in the process of implementation, will assist in mitigating transactional risk across enterprisesilos and also strengthen the Group’s e-channel and insider fraud prevention capability.In addition, UBA is currently deploying Entrust two-factor authentication application and implementing robust network securitycontrols (such as Imperia and Arcsight) towards ensuring the security of web/critical applications and the Group’s global networkinfrastructure respectively.Annual Report and Accounts 2010 117