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.
Latest Stories
-
Masai Ujiri, Giants of Africa unite African Diaspora in Toronto
31 seconds -
NDC accuses NPP of spreading falsehoods about GoldBod operations to undermine public trust
9 minutes -
Dr Ofori Sarpong donates state-of-the-art facility to PRESEC
12 minutes -
Women. Power. Politics. The Oldest Unpaid Job in the World (Issue 2)
20 minutes -
NDC denies diverting cocoa funds for presidential aircraft purchase, calls claim false
34 minutes -
Full Report: Probe Committee Report on Charles Amissah’s death
36 minutes -
Photos: Veep joins stakeholders at 3i Africa Summit to advance Africa’s digital integration
43 minutes -
Charles Amissah’s death: Committee report should serve as a warning to health workers—Doctor
45 minutes -
Think the weather forecast is unreliable?: Here is why
50 minutes -
Women’s Development Bank to offer low-interest credit for female entrepreneurs – Trade Minister
53 minutes -
UK immigration officer among two men guilty of working for Chinese intelligence
54 minutes -
Fears of renewed Gaza war as Hamas disarmament talks stall
54 minutes -
Israeli military investigates soldier’s act against Virgin Mary statue in Lebanon
54 minutes -
Major rail disruption expected in southern England until end of day
54 minutes -
The ‘Only Way Is Essex’ star Jake Hall dies aged 35
55 minutes