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UBA Ghana has had its Long-Term Issuer Default Rating (IDR) affirmed at ‘B-’ with a stable outlook by Fitch Ratings in its latest report released on 10 July 2025.
The rating is underpinned by UBA Ghana’s standalone creditworthiness and the potential support from its parent company, UBA Plc, which is headquartered in Nigeria.
Fitch also upgraded UBA Ghana’s Viability Rating (VR) to ‘b-’, reflecting improved creditworthiness following the sovereign upgrade of Ghana.
The update follows Ghana’s Long-Term Foreign-Currency IDR being raised to ‘B-’ in June 2025, after the country successfully restructured most of its Eurobond debt.
There various Key Drivers of the Rating including: Strong Profitability and Capital Strength: UBA Ghana has consistently recorded high operating returns on risk-weighted assets, averaging 4.5% from 2021 to 2024. The bank maintains large capital buffers, with a tangible leverage ratio of 12.7% and a CET1 ratio of 14.1% as of March 2025.
High Sovereign Exposure but Well Capitalised: While UBA Ghana holds significant investments in government securities (over 290% of equity), Fitch notes the bank’s strong capital position mitigates potential risks. Liquidity also remains robust, with customer deposits accounting for 93% of non-equity funding.
Improved Loan Quality: Impaired loans fell to 12.5% by the end of 2024 from 24.7% the previous year, thanks to strategic write-offs and recoveries. The bank’s prudent lending approach means loans constitute only 9% of total assets.
Group Support Outlook: Fitch notes UBA Ghana's strategic importance within the UBA Group, with the parent company’s Long-Term IDR upgraded to ‘B’ in April 2025 following Nigeria’s sovereign rating uplift. UBA Ghana’s Shareholder Support Rating (SSR) remains at ‘b-’, a notch below its parent, reflecting its size within the group.
Commenting on the rating, Managing Director/CEO of UBA Ghana, Uzoechina Molokwu, stated: “We are encouraged by this affirmation from Fitch, which reinforces the confidence in our business fundamentals, prudent risk management, and the continued support from our parent group. We remain committed to delivering exceptional value to our customers, shareholders, and stakeholders across Ghana.”
UBA Ghana is well-positioned for future growth, with plans to expand lending to high-quality corporate and SME clients while continuing to manage sovereign and credit risks prudently.
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