The entry of United Bank for Africa (UBA) Group into Dubai presents opportunity for the bank to harness business opportunities, especially trade finance, in Middle East, Africa and South Asia (MEASA) regions with $7.7 trillion Gross Domestic Product (GDP).
The bank, which operates in different countries in Africa, United States of America, United Kingdom and Dubai will be using these networks to connect African businesses to the world. The UBA Plc,Dubai International Financial Centre (DIFC) branch launched last week operates under the category four license and regulated by the Dubai Financial Services Authority (DFSA).
Dubai, the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, has so many things going for it.
Its ultramodern architecture, strong currency and being a first-class jurisdiction with access to regional and global markets made it outstanding from other cities.
Most first time visitors to Dubai are thrilled by the strength of its currency, Dirhams (AED), which is almost at par with the United States dollar. The Dirhams exchanges at AED 3.67 to $1.
Last week’s opening of the UBA Plc, Dubai International Financial Centre (DIFC) branch at the Dubai International Financial Centre (DIFC) was also remarkable in many ways.
First, it gives the UBA Group access to $7.7 trillion Middle East, Africa and South Asia (MEASA) markets enabling it to be at the centre of trade in these regions.
Secondly, the strength of Dirhams is expected to rob off positively on the naira and give the bank wider access to foreign exchange earnings.
The UBA Group is already a household name in banking across many countries, with its drive for expansion to new markets aligning with the determination to bring banking closer to the people not only in developing nations, but advanced economies.
UBA Group’s expansion to Dubai will enable it harness opportunities in the MEASA, which comprise of 72 countries with an approximate population of three billion.
The UBA Plc (DIFC Branch) operates under the Category four license and regulated by the Dubai Financial Services Authority (DFSA), which is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre.
Speaking during the branch opening in Dubai, Chairman, UBA Group, Tony O. Elumelu, said DIFC Branch was a strategic move by the bank to connect African businesses to Gulf investors and deepen the depths of African economies.
This will reinforce its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world.
Elumelu said: “We are happy that Africa’s global bank is fulfilling its dreams of helping to finance trade, infrastructure for our people who are industrious and committed to Africa’s dream of prosperity. UBA Dubai is not for Dubai alone, but for the entire region”.
Continuing, he said: “We are looking forward to celebrating UBA at 10, 20 and 30 years in Dubai. May God prosper your businesses for you to do more with us”.
“It is beyond the Middle East but the Far East as well. In the first instance, we believe that Dubai should serve this area. We have a lot of customers who do business in the Far East. We want to be that bank that helps to support our people who do business in any and every part of the world. That is why we are called Africa’s Global bank. We are happy that Dubai is happening and sometimes soon the Far East would also come on stream,” he stated.
UBA Dubai will service corporate and financial Institutions and customers across the Middle East with a core focus on correspondent banking, relationship management and advisory services.
Speaking further, Elumelu explained that with the Group’s foray into the Gulf Region, UBA continues to focus on its strategic intent to lead the way when it comes to doing business in Africa.
He said: “Collaborating with our franchises in 20 African countries and the major financial centres of London, New York and Paris, UBA (DIFC Branch) will facilitate the financing of trade transactions between the Middle East and Africa, enabling trade finance and investments”.
‘We have been looking forward to this day as it is the first time we will have presence in this part of the world. We know that our international expansion is incomplete if we are not present in the gulf’, he added.
UBA’s Group Managing Director/CEO, Kennedy Uzoka, who also spoke at the event said, “Today, we are formally on four continents across the globe, operating in 24 countries, serving over 35 million customers and still growing.”
“We are the only bank with Nigerian origin that has extended out of Nigeria to the UAE. Those before us have come through other locations and that shows the strength and respect the Dubai authorities have for UBA. Our presence in Dubai affirms that UBA is a strong franchise, expanding its reach across the world,” Uzoka said.
“The authorities and business environment here in the DIFC is phenomenal and UBA is seeing Dubai as the gateway for Africa and that is why we are here, to be closer to our clients, to be partnering with them and facilitate businesses and trade flows into Africa through the UBA franchise. So, we are super excited.
On his part, the CEO, UBA (DFIC), Vikrant Bhansali, said; “Trade, commerce and Investments in Africa is expanding in the Gulf Region and Asia. Leveraging the presence of UBA Group in global financial centres, UBA (DFIC) will enhance the ability of the group to facilitate access of Gulf investors and banks to African markets. We will finance trade, facilitate commerce and help grow investment in Africa, across all sectors.”
Chief Executive Officer, Dubai International Financial Centre (DIFC) Authority, Arif Amiri, said during the ribbon cutting ceremony that “UBA (DFIC) attests to the strong relationship between Dubai and Africa.
“It is a beautiful start as we are looking forward to achieving more interaction, channelling more trade and investments into Africa, and with UBA DIFC, we are closer to achieving our objectives. DIFC will continue to seek partnerships that will deliver winning relationships as we have just witnessed with UBA Group,” he said.
UBA Group has been in operation for over seven decades with presence in 20 African countries, the United Kingdom, the United States of America and France.
UBA Dubai Branch/ Nigeria, Africa markets
Elumelu said the relationship between the Gulf and Africa had been strong long before now and there are a lot of Africans who do business in the Gulf region and there are a lot of people in the Gulf region that want to do business with Africa.
He said these businesses need to find the right partners and the right financial institution to work with. So, UBA setting up in Dubai at this point in time would help to provide that payment and trade finance correspondent banking platform for our people and Africans who do business in the Gulf region and people in the Gulf region who do business with Africa.
“It’s been a long journey; we have always hoped and wished for this to happen and we are happy that today, that audacious ambition or dream has become a reality and we are happy that UBA is berthing in the Gulf and Dubai precisely.”
“UBA as you know operates in 20 African countries with over 1,000 branches and 35 million customers and operates in the UK, France, USA as the only African bank in America. So, we are happy to be extending our services to Dubai. UBA Dubai is the first Sub-saharan African bank to be fully authorised to operate as we have just commencing business,” he said.
Continuing, he said there are advantages of coming to Dubai but more importantly, it is a highly effective regulatory environment. UBA having operated in the US which is a tougher environment, operating also in the DIFC complements that. But more importantly, are the business opportunities that we see, no just for UBA, but for Africa.
UBA UK operations/ Africa-Europe trade
In march 2019, UBA Group launched the United Kingdom (UK) branch to promote trade and commerce between Europe and Africa.
The UBA UK franchise was opened three weeks after the global lender opened its subsidiary in Mali.
The event attracted high-level gathering of business and public sector leaders to The Shard in the city of London.
The launch followed the authorisation of the Prudential Regulation Authority(PRA) and the Financial Conduct Authority(FCA) for UBA UK Limited to carry out full scale wholesale banking across the UK.
The UBA UK, previously named UBA Capital (Europe), offers treasury services, cash management, correspondent banking, corporate lending and wholesale deposit products to professionals and eligible counter-parties.
It also provides structured and trade finance, issuance, acceptance, confirmation and refinancing of Letters of Credit of different variations among others.
UBA Group further consolidates its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the world.
Elumelu said the Group was excited by the authorisation of the relevant regulatory authorities in the United Kingdom for UBA to upgrade its operation and further fulfill its aspiration of deepening trade and investments flows between Africa and Europe.
UBA Plc sustains profitability in Q1
The UBA Plc recorded N183.9 billion in its unaudited results for the first quarter ended March 31, 2022.
The bank, which achieved impressive growth across other income lines grew its profit before tax (PBT) to N44.5 billion.
The PBT was higher than N40.6 billion recorded during the same period of 2021. Its profit after tax stood at N41.5 billion during the period under review.
The bank’s results, released to the Nigerian Stock Exchange showed that gross earnings also rose by 18.3 per cent from N155.4 billion in 2021.
Its operating income grew by 18 per cent to N125.9 billion, higher than N106.6 billion as at March 2021.
The bank’s total assets rose by 4.1 to N8.9 trillion, compared to N8.5 trillion recorded at the same period of 2021 while shareholders’ funds stood at N825.7 billion, an improvement from N804.8 billion in the same period of 2021. UBA sustained its strong profitability recording an annualized 20.4 per cent Return on Average Equity (RoAE).
