Why UBA brand remains strong, attractive, spreading across Africa and the globe
One of the many things that made the United Bank for Africa Group (UBA Group) Plc a strong brand is that the managers of the Group seize every available opportunity to invigorate the brand. Little wonder that the UBA brand has remained solid ever since it came on stream some seven decades ago.
In marketing parlance, a brand refers to a product or business that has a unique identity that differentiates it from similar products in the perception of the consumers. This identity enables the consumers to identify the brand easily. According to experts, a successful brand communicates its quality to the consumers. These qualities consist of the product package design, logo, packaging, ad message to the consumers. The UBA Group is very good at this. It does not joke with its brand.
With a presence in over 24, the Group is currently working assiduously to spread its operations to every nook and cranny of Africa in order to optimize the opportunities created by the emergence of African continental Free Trade Area (AfCFTA) which become operational on January 2021. AfCFTA is a free market designed to increase intra-African trade within Africa. It has created the largest free market in the world ,connecting 1.3 billion people across 55 countries with a combined gross domestic product valued at $3.4 trillion. It has the potential to lift over 30 million people out of extreme poverty. The managers of UBA group are not resting on their oars to participate maximally in the continent’s intra-trade and by so doing helping each of the 55 countries to achieve their economic potentials, and by so doing strengthening and spreading the brand.
The value they place on brand is reflected in the Group’s logo. Tagged Africa’s Global Brand, UBA logo tells the story. It is distinctive, simple, elegant, vibrant and memorable, combining the mustard seed legacy of the Standard Trust Bank with the unique typography of UBA logo in predominant red on white. The red colour represents energy, boldness, strength, innovation, excitement and distinction, all of which are in line with the Group’s dominance aspirations and its dynamism. The white colour which represents purity, brightness and clarity of focus bespeaks the Group’s integrity and professionalism, while the mustard seed represents fertility and sustained growth& development, connoting deep personal relationships based on the spirit of selflessness and mutualism.
Today, UBA Group has continued to distinguish itself in the marketplace by combining first class products with superior customer service. Its aim is to surpass customer expectations in a timely, consistent and professional manner and to make life easier for its customers whilst creating values via convenient innovative banking products and services, anytime, anywhere.
The UBA Group has continued to enjoy international reputation for excellence as a result of its commitment to constant innovation as a means of enhancing the image of the brand, whose corporate identity rests on its core values.
Corporate Social Responsibility
UBA Group is also invigorating its brand through social engagements. The Group owns a Foundation which was created in 2004. This policy initiative is contained in its document which expressed unflinching commitment to be a socially responsible group and role model for all businesses in Africa. As a Corporate Social Responsibility (CSR) arm of the Group, the Foundation is committed to socio-economic betterment of the communities in which the Group operates, focusing on development in the areas of education, environment, economic empowerment and special projects.
Some of the CSR projects executed by the Foundation include the completion of pedestrian bridge for Usmanu Danfodiya University in Sokoto State at the cost of N13 million, thus bringing comfort for the students of the institution. The foundation also donated $14 million towards the fight against Covid-19, Braille machines for secondary school student to improve adverse living conditions in many communities, support for Sierra Leon Government to manage mudslides which was ravaging the country, among others.
Shareholders values
The UBA Group’s brand is also being strengthened and invigorated by providing values to shareholders. Right from its inception UBA has been increasing its shareholders values, by making profits (courtesy of its strong brand) and giving mouth-watering returns on their investment. Shareholders never registered any regrets for investing in the Group because of the juicy returns on their investments. The UBA stock is hot cake at the stock exchange.
For instance, in the financial year which ended December 31, 2023, the Group recorded 143 per cent increase in gross earnings to N2.08 trillion from N853.2 billion in 2022. Following the same trend, profit before tax rose by 277 per cent to N758 billion in 2023 from N201 billion in 2022. The total assets rose by 90.22 per cent, doubling the N10 trillion mark to close at N20.65 trillion in December 31, 2023 up from N10.86 trillion in 2022.
On account of the triple digit growth in profitability, UBA Group Shareholder’s Fund rose from N922 billion in December 2022 to N2 trillion in the same period in 2023, achieving an impressive growth of 120.2 per cent in the previous year. The cost-to-income ratio dropped from 59.2 per cent in 2022 to 37.2 per cent, indicating an in efficiency and prudent management.
The Group’s Return on Equity and Return on Assets both doubled by 41.17 per cent and 3.86 per cent, respectively. Earnings Per Share rose 262 per cent to N17.49 while Cost-Income -Ratio moderated to 37. 23 per cent, from 59.04 per cent in prior year.
Commenting on the sterling performance, the highly elated Group Managing Director/CEO of UBA Group, Oliver Alawuba said: “United Bank for Africa had a strong year and I am delighted with the extremely satisfying results achieved by our Group in financial FY 2023. The Group made a profit before tax of N758 billion, a significant increase from N201 billion in prior year. Our balance sheet grew to N20.7 trillion from N10.8 trillion in 2022.”
Alawuba attributed the excellent performance of the Group to “our diversified business model and the considerable investments in our Pan African and international businesses,” which he said contributed “strongly to our results and resilience, and reinforces our resolve to expand further our market share of customers, funding, digital and transaction banking businesses across Africa and globally.”
In fulfilment of the promise made UBA Group Chairman, Tony Elumelu, at the last Annual General Meeting in 2022, the group proposed a final dividend of N2.30 kobo for every ordinary share of N50 kobo for the financial year which ended December 31 2023.
The Group vows to remain committed to sustainable growths and maintaining its strong compliance and risk management practices, culture, even as it identifies further opportunities to expand.
The foregoing analysis show how the UBA Group brand has consistently been on the front burner in the Nigerian and African financial industry. As stated before, the Group never fails to use every slight opportunity to optimise its brand. UBA brand is always being positioned to be the competition. Every action taken by the Group has brand promotion as part of its core objective. Little wonder the brand is spreading across the globe.
