2009 Annual Report and Financial Statements - UBA Plc

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OUTLOOK Global economic growth is expected to return to positive territory in the year ahead, though the pace of recovery will likely be slow and subject to uncertainty. I am optimistic about the recovery in Africa, in line with the International Monetary Fund’s forecast of above 4 percent growth for the continent in the light of positive policy responses in sub-Saharan Africa and an improving world outlook. UBA is fi rmly committed to its strategic focus as Africa’s economy recovers from the global downturn. Africa’s gross domestic product is likely to grow by between 5.5% and 6% in 2010. I am also optimistic about outlook in the countries in which UBA has presence, presenting us with great opportunities to grow our earnings and profi tability. Almost all of the major African frontier economies are in the line for Eurobond issuance. Sierra Leone and Ghana have discovered oil and their economies will benefi t signifi cantly from such diversifi cation. While I expect the Nigerian operating environment to remain tough in the year ahead, it will also present great business opportunities to be explored. Sustaining the relative peace achieved in the Niger Delta will be key to improved oil production. New investment fl ows into the economy are expected, particularly in the banking sector, as foreign players gear up to gain stronger foothold in the country and banks access the bond market for funds. We remain confi dent that UBA is well-positioned to play a dominant role in today’s environment. Our strength leads to opportunities and we will continue to improve our competitive position. Our strategy has served us well and positions us for long-term growth with attractive returns to all our stakeholders. It is important to notify you of major Board changes during the period. In June 2009, Alhaji Ibrahim Jega passed away. It is our prayer that the Almighty grants his soul eternal rest. Meanwhile, during the period also, Alhaji Abdulqadir J Bello was appointed an Executive Director. Until his appointment, he was the Chief Credit Offi cer of UBA Group. Alhaji Bello is expected to bring his wealth of experience, especially in the area of credit, to bear at Board deliberations. Recently, Godwin Ize-Iyamu and Angela Nwabuoku resigned their appointments as Executive Directors and stepped down from the Board. We thank both of them for their immense contributions to the success of the Bank while in their executive roles, and wish them well in their future endeavours. I would like to thank our esteemed customers, shareholders and other stakeholders for their continued support, whilst appreciating all staff and management for their demonstrated professionalism, commitment and zeal towards building an enduring institution. And to the entire Board, I want to say a big thank you for the confi dence reposed in the business. I would implore you all to lend your support as we look forward to consolidating on both our achievements and out foothold in the marketplace this fi nancial year. Thank you. Chief Ferdinand Alabraba Chairman 14 April 2010 UBA is fi rmly committed to its strategic focus as Africa’s economy recovers from the global downturn Our strength leads to opportunities and we will continue to improve our competitive position Annual Report 2009 15 Chairman’s statement
Group Managing Director/Chief Executive Offi cer’s statement TONY O. ELUMELU Group Managing Director/Chief Executive Officer’s 16 2009 was a particularly eventful year for the African fi nancial services sector UBA demonstrated resilience, emerging from these events stronger than ever Recognised as the second fastest growing brand within the world’s top 500 global fi nancial institutions by the Financial Times (FT)/ The Banker Magazine Annual Report 2009 Highlights for the year “I am pleased to report that we achieved signifi cant milestones on each goal, which when combined, set the stage for what I believe will be the platform for growth and profi tability in 2010 and the years to come” Distinguished shareholders, It is my pleasure to present to you our Group performance for the period ended December 31, 2009. 2009 was a particularly eventful year for the African fi nancial services sector, as the impact of the global fi nancial crises of the previous year began to take its toll. However, the fractures in the international fi nancial system provided opportunities for well capitalised and liquid banks, such as UBA, to further consolidate their position as market leaders. The Central Bank of Nigeria (CBN) implemented resolute regulatory measures to ensure the stability of the Nigerian banking system, including a special audit or stress-test on all banks, and I am pleased to record that UBA was one of the fi rst fi ve banks to pass the audit. UBA demonstrated resilience, emerging from these events stronger than ever, thus vindicating our risk management and governance practices. Our focus has always been on building the necessary institutional and governance frameworks to ensure business sustainability and continuity. Indeed, in 2009 we consolidated our position as a leading fi nancial services institution in Africa. I would highlight some key transactions and milestones achieved during the period, which illustrate our progress, despite the global fi nancial storm. KEY TRANSACTIONS • Arranger and lead underwriter of a USD265 million loan to Nigerian National Petroleum Corporation/ Mobil Producing Nigeria Unlimited for the Natural Gas Liquid II Supplemental Refi nancing; and • Lead arranger and underwriter for N18.5 billion Imo State Government of Nigeria Bond KEY MILESTONES • Launched our Africash and Afritrade products to facilitate swift and cost eff ective transfers across Africa; • Initiated the Western Union Money Transfer service, thereby becoming the fi rst bank in Nigeria to be an agent of the two largest Money Transfer Operators (the other being Moneygram) since the non-exclusive environment came into being as directed by the Central Bank of Nigeria. We are also replicating this in other non exclusive countries across Africa; • Expanded operations in seven new African countries, bringing to 16 the number of African countries we currently operate in; • Launched a Group Shared Services platform designed to unlock scale economies in our operations and transform customer service. This is the fi rst of its kind in this part of the world; and • Recognised as the second fastest growing brand within the world’s top 500 global fi nancial institutions by the Financial Times (FT)/The Banker Magazine; recognition of our position, as “the Bank that unites Africa”. Each in a diff erent way attests to our ability to pursue disciplined growth, to compete with peers locally and globally and fi nd new ways to serve our huge and growing customer base.
Page 1 and 2: United Bank for Africa Plc RC: 2457
Page 3 and 4: Deposits (N’Billion) 1500 1200 90
Page 5 and 6: Group at a glance Countries of oper
Page 7 and 8: Board of directors 4 Annual Report
Page 9 and 10: Board of directors (continued) 6 An
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Page 13 and 14: Senior management 10 Annual Report
Page 15 and 16: Chairman’s statement CHIEF FERDIN
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Page 21 and 22: Group Managing Director/Chief Execu
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Page 25 and 26: Review of Group’s fi nancial perf
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Page 31 and 32: Corporate social responsibility rep
Page 37 and 38: Directors’ report for the period
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Page 45 and 46: Report of the Audit Committee To Me
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Notes to the consolidated fi nancia
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Group fi ve-year fi nancial summary
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Risk management report ENTERPRISE-W
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Risk management report (continued)
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Shareholder information MARKET STAT
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Shareholder information (continued)
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Shareholder information (continued)
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Glossary AML Anti Money Laundering
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Corporate information (continued) N
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Notice of annual general meeting (c
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Notes 128 Annual Report 2009
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e-Dividend mandate form Dear Shareh
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Registrars UBA Registrars Limited R
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2009 Annual Report and Financial Statements - UBA Plc

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