Audio By Carbonatix
Fitch in September 2023, carried out a thorough examination of United Bank for Africa, Ghana (UBA Ghana) Ltd and affirmed its strong rating Long-Term Issuer Default Rating (IDR) at “B-” with a stable outlook and Viability Rating (VR) also affirmed at “CCC”.
The affirmation of UBA Ghana’s rating is based on a strong capital buffer and healthy liquidity. Despite the negative impact of the first phase of Domestic Debt Restructure (DDE) and the potential risk of growth in non-performing loans, UBA Ghana remains adequately capitalized to withstand any turmoil within the banking terrain.
Fitch's analysis of UBA Ghana further indicated that despite the bank’s exposure to the ongoing debt restructuring of Cocoa bills and the Government of Ghana Eurobonds, the bank’s capital and liquidity would be able to withstand the impacts of these Government debts restructure.
Fitch affirmed UBA Ghana’s Shareholders Support Rating at “B” revealing that although the sovereign default remains high, the Bank remains attractive and its contribution to the Ghanaian market aligns with UBA’s Pan-African agenda.
UBA Ghana Ltd posted strong financials in H1 2023 with an improved liquidity ratio of 85.65% and a Capital Adequacy ratio of 19.46%.
The bank’s deposit, as of H1 2023, grew by 20.85% to close at GHS5.17bn against the prior year of GHS4.28bn. This growth funded Total Asset growth of 21.41% which was from GHS5.63bn in H1 2022 to GHS6.84bn in H1 2023.
The Bank posted 156% Y-o-Y growth in Profit Before Tax from GHS116m in H1 2022 to GHS296m in H1 2023. This improvement is a result of efficiency and enhanced customer service.
The Bank has led many innovations in the industry. At the peak of the COVID pandemic, it introduced LEO, Ghana’s first virtual banker on WhatsApp, Facebook, and iMessage and soon to be deployed on two other channels subject to regulatory approval.
UBA Ghana is making financial inclusion a reality in Ghana by supporting SMEs in expanding access to other markets in Africa through partnerships with the United National Development Programme (UNDP), the Africa Continental Free Trade Area (AfCFTA), and the Pan-African Payment and Settlement System (PAPSS).
UBA Ghana is a subsidiary of United Bank for Africa Plc, a leading Pan-African financial institution, offering banking services to more than thirty-seven million customers across over 1,000 business offices, customer touch points in 20 African countries and operating in 4 continents.
With a presence in New York, London, Paris, and UAE, UBA is connecting people and businesses across Africa through Retail, Commercial and Corporate Banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services.
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