2009 Annual Report and Financial Statements - UBA Plc

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Risk management report (continued) Exposure to credit risk is also managed through regular analysis of the ability of borrowers and potential borrowers to meet interest and capital repayment obligations and by changing these lending limits where appropriate. Credit Collections Recoveries A dedicated Collections and Recoveries unit is directed from the centre and oversees decentralised collections infrastructures, particularly in respect of remedial actions on consumer loans. Collateral The Group employs a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security for funds advances, which is common practice. The Group implements guidelines on the acceptability of specifi c classes of collateral or credit risk mitigation. The principal types of collateral accepted for credit exposures are: a. Legal Mortgages (Land; Ships; Shares; Life Policy) ; b. Debenture, including Mortgage Debenture; c. Guarantees & Bonds; d. Others (Negative pledge; Letter of comfort ;Hypothecation, Domiciliation of Payments, Leases) For purposes of prudence and in compliance with regulation, the Bank ensures that all of its risk assets are suffi ciently mitigated and secured, whether they are long-term credits, exposures to corporate entities or revolving individual credit facilities. Collaterals held as securities for fi nancial assets other than loans and advances are determined by the nature of the instruments. Debt securities, treasury and other eligible bills are appropriately structured, especially asset-backed securities and similar instruments, which are secured by portfolios of fi nancial instruments. (a) Master netting arrangements The Group further restricts its exposure to credit losses by entering into master netting arrangements with counterparties with which it undertakes a signifi cant volume of transactions. Master netting arrangements do not generally result in an off set of balance sheet assets and liabilities, as transactions are usually settled on a gross basis. However, the credit risk associated with favourable contracts is reduced by a master netting arrangement to the extent that if a default occurs, all amounts with the counterparty are terminated and settled on a net basis. (b) Credit-related commitments The primary purpose of these instruments is to ensure that funds are available to a customer as required. Guarantees and standby letters of credit carry the same credit risk as loans. Documentary and commercial letters of credit – which are written undertakings by the Group on behalf of a customer authorising a third party to draw drafts on the Group up to a stipulated amount under specifi c terms and conditions – are collateralised by the underlying shipments of goods to which they relate and therefore carry less risk than a direct loan. Annual Report 2009 97 Financials
Risk management report (continued) RISK ASSETS (LOANS AND ADVANCES, OFF-BALANCE SHEET DIRECT CREDIT SUBSTITUTES, ETC) Loans and advances are summarised as follows: 2009 2008 N’million N’million Performing 589 871 429 288 Non-performing – Sub-standard 13 480 6 308 – Doubtful 9 371 2 883 – Lost 30 734 7 008 98 Annual Report 2009 643 456 445 487 Performing but past due loans Loans and advances less than 90 days past due are considered performing, unless other information is available to indicate the contrary. Gross amount of loans and advances by class to customers that were past due but performing was as follows: Financial Retail Corporate SME Institutions Total N’million N’million N’million N’million N’million At December 2009 Past due up to 30 days 5 564 20 674 19 314 22 45 574 Past due 30 - 60 days 3 178 4 886 1 124 4 9 192 Past due 60 - 90 days 3 009 8 771 1 106 43 12 929 11 750 34 331 21 544 70 67 695 At September 2008 Past due up to 30 days 424 13 708 392 11 144 25 668 Past due 30 - 60 days 2 741 3 107 3 113 5 609 14 571 Past due 60 - 90 days 1 443 12 072 2 955 229 16 699 4 609 28 888 6 460 16 982 56 938
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United Bank for Africa Plc RC: 2457
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Deposits (N’Billion) 1500 1200 90
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Group at a glance Countries of oper
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Board of directors 4 Annual Report
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Board of directors (continued) 6 An
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Board of directors (continued) 8 An
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Senior management 10 Annual Report
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Chairman’s statement CHIEF FERDIN
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Chairman’s statement (continued)
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Group Managing Director/Chief Execu
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Review of Group’s fi nancial perf
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Review of Group’s fi nancial perf
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Our products and services Selected
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Corporate social responsibility rep
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Directors’ report for the period
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Directors’ report (continued) •
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Directors’ report (continued) AUD
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Corporate governance report (contin
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Report of the Audit Committee To Me
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Report of the independent auditors
Page 49 and 50: Accounting policies for the period
Page 55 and 56: Consolidated profi t and loss accou
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Page 59 and 60: Notes to the consolidated fi nancia
Page 87 and 88: Group fi ve-year fi nancial summary
Page 89 and 90: Risk management report ENTERPRISE-W
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Page 119 and 120: Shareholder information MARKET STAT
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Page 125 and 126: Glossary AML Anti Money Laundering
Page 127 and 128: Corporate information (continued) N
Page 129 and 130: Notice of annual general meeting (c
Page 131 and 132: Notes 128 Annual Report 2009
Page 134: e-Dividend mandate form Dear Shareh
Page 137 and 138: Registrars UBA Registrars Limited R
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2009 Annual Report and Financial Statements - UBA Plc

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