2009 Annual Report and Financial Statements - UBA Plc

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Risk management report (continued) Statutory liquidity ratios Limit allowed Group Bank 2009 2008 2009 2008 Liquidity ratio (%) 25 47.1 70.9 45.7 68.0 Internal liquidity ratios Limits allowed Group Bank 2009 2008 2009 2008 Loans/deposits < 55 48.7 32.4 47.2 32.2 Liquidity ratio Interbank borrowings (net of open buy back >28 47.1 70.9 45.7 68.0 takings)/total deposits < 3 0.1 – 0.1 – FUNDING APPROACH Funding mix targets are maintained in terms of the balance sheet management process, to ensure inter alia that adequate diversifi cation of funding sources by currency, geography, provider, product and term, etc, exist at all times. In UBA Group, our primary funding sources follows the typical profi le of a multinational fi nancial institution. This includes capital and third party deposits in the form of savings accounts, demand/term deposits as well as longer-term fi nancing sourced strategically from Development Banks. Contingency funding sources in periods of tightened market liquidity include sale or repurchase of Government Securities and inter-Bank Borrowing. In some jurisdictions where the Group operates, the Central Bank intervenes during periods of reduced liquidity in the market through activation of monetary policy mechanisms such as adjustment of the reserve requirements and quantitative easing. The Group structure provides inter-subsidiary funding support where required by way of direct borrowing between affi liates and inter-company placements. In order to deepen the funding structure and support longer tenured assets, UBA PLC secured a number of foreign currency facilities from Developmental Financial Institutions (DFIs) such as ADB and Afrexim. In addition, we have increased our standby facilities for structured trade fi nance from international commercial banks in Europe. This strategy has enabled us to support the increasing volume of requests for mid- to long-term facilities which are needed for stability in the manufacturing and Telecoms sectors. Over the past three years, we have determined that we have a stable core that has grown steadily year on year. Total deposits increased from N0.76 trillion in 2006 to over N1.25 trillion by the end of 2009, despite a challenging environment and economic downturn. Annual Report 2009 105 Financials
Risk management report (continued) Our deposit product and sector diversifi cation spread is illustrated in the charts below. DEPOSIT CLASS DEPOSIT TYPE The liquidity gap analysis (below) indicates that the Group is very liquid, and able to meet its maturing obligations as they fall due for the next fi nancial year. It is apparent from the analysis that UBA is able to absorb any unexpected liquidity shock in case the market situation changes during 2010. Almost 100% of the African countries in which UBA operates have fundamentally liquid economies, and this is refl ected in the Group liquidity profi le. 106 Annual Report 2009 Corporate Retail Current Savings Term Domiciliary
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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
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Accounting policies for the period
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Consolidated profi t and loss accou
Page 57 and 58: Consolidated cash fl ow statement f
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
Page 91 and 92: Risk management report (continued)
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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
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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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